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Using financial data, Mark Sibthorpe compares the performance of TD bank to its rivals. TD grew faster in 2017 than its rivals, but was cited for aggressive sales practices.

Mr. Michael R. King, Tangerine Chair in Finance and Co-Director, Scotiabank Digital Banking Lab / Ivey Business School at Western University

This video covers XE.com's presentation at the AI, Big Data and Analytics event which took place in Toronto February 7/8, 2018. Cecelia Tamez and Jean Louis provide insights into their evolution and winning strategy.

Greenpeace's campaign to stop TD financing the oil sands is delusional. Trillions of dollars are at stake for the banks and the Canadian economy. This video explores the related financial issues.

This video provides an overview of the main differences between Canada's approach to overland flooding versus the US approach.

Canadian bank overview part 5, medium-large banks. Banks include Manulife, Tangerine and Laurentian Bank.

Canadian banking industry overview of Canadian Tire Bank, Presidents Choice Financial, Equitable Bank, B2B Bank

Overview of small-medium size banks in Canada. Banks covered include Versabank, Hollis Bank, Equity Bank and Caisse Populaire Acadienne.

Review of small banks including Bridgewater,Vancity Bank, Concentra, Wealth One, Zag...

Jamie Dimon calls bitcoin a fraud used by criminals, yet he has jumped into the blockchain with both feet.

RBC invested $24 million into Wave Technologies and now they will roll out Waves accounting, invoicing, reporting and billing platform to SMEs.

Overview of Canadian banking industry. This multi-part series looks at issues facing Canadian banks from a variety of angles. Part 1 examines the types of banks and scale using ROE and EBITDA as measures.


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About BankNews TV: financial services industry monitor (FSIM), analytics and research

Latest news and events for Canadian financial service companies, analytics, fintech and AI. BankNews.TV provide the latest technology news and reports for banks and insurance companies looking to compete in a rapidly changing market.

Analytical information and financial information related to technogies that can change your business.

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Research

Banking on Pot  

banknews.tv/docs/c10191_banking-on-pot.pdf

SBS

As states across the US legalize marijuana for both medicinal and recreational purposes, it has fueled a growing industry of marijuana related businesses (MRBs).


Canadian banking industry overview  

Mark Sibthorpe

The industry overview is divided into 5 parts:

Introduction
Small banks
Small medium sized banks
Medium sized banks
Medium large banks


2014 Mobile payments the Apple pay way  

banknews.tv/docs/Mobile_Payments_Apple_Pay_2014.pdf

Mark Sibthorpe

With Walmart Pay about to userp Apple Pay, I thought I would share my 2014 book on mobile payments and loyalty. The guilde was written for Merchants that want to understand loyalty, credit, mobile payments and Apple Pay, but anyone involved with credit and loyalty might find it useful.
The book is a prelude to Walmart leaving MCX, and chronicles the evolution that led to Walmart Pay. There is an extensive case study of Walmart that looks into its efforts to become an ILC and to avoid paying credit card transaction fees ('merchant discount').
It offers readers a step-by-step methodology for evaluating and transforming credit and loyalty programs. The strategies are based on proven examples and industry facts. The Nectar, Target, Canadian Tire and Walmart case studies are examples of the practical approach I have taken, written with the intent that merchants can use them as blueprints for their own initiatives. 


Death to bitcoin, long live the blockchain   (See full report)

Mark Sibthorpe

Jamie Dimon calls bitcoin a fraud used by criminals, yet he has jumped into the blockchain with both feet.


TD bank industry conduct  

banknews.tv/docs/tdind2.pdf

Mark Sibthorpe

TD’s share price recently collapsed by $7 bn in one day due to CBC’s allegations of aggressive selling tactics. A huge fall from a bank that was trading at a premium as recently as January. This was even before the most recent allegation of TD attempting to avoid paying taxes on advertising.
This report chronicles the events leading up to the collapse, shows TD's performance, analyses other related issues.


Book review: Back from the Brink  

banknews.tv/docs/backbrink.pdf

Mark Sibthorpe

This is a book review of the book Back from the Brink by Paul Halpern, Caroline Cakebread, Christopher C. Nicholls and Poonam Puri.


Footnote 151  

banknews.tv/docs/footnote151.pdf

Mark Sibthorpe

Footnote 151 implies an important regulatory change related to derivative contracts. It means that US Banks will not be required to hold as much capital against commodities. If you want to understand the implications of this regulatory change in more detail, see the enclosed related article detailing the changes. For contextual purposes, I have also included two Rolling Stones Magazines reports from 2010 and 2014 that chronicle the role large US banks have played in manipulating commodities. You might question the credibility of these sources, but rest assured, these reports are based on United States Senate hearings which outline the issues in a 396 page report related to the implied risks. 


Save the Canadian economy now  

banknews.tv/docs/helecopter-money.pdf

Mark Sibthorpe

Consumer debt spending appears to have insulated Canada from the worst of the credit crisis, but now the alarming magnitude of consumer debt ($1.92-trillion) could exacerbate a day of reckoning.
This report assesses the issues at hand and recommends the solution to get Canada's economy on track.


Reasons financial service companies should consider gamification  

banknews.tv/docs/Gamfin.pdf

Mark Sibthorpe

Gamification of business processes resulted on Mint.com growing to 10 million users within 4 years. This report explains how.


National Bank Special Report  

banknews.tv/docs/NatBSpec.pdf

Mark Sibthorpe

According to Bloomberg, National Bank of Canada will take a C$64 million ($48 million) restructuring charge in the fourth quarter and said its investment in Maple Financial Group Inc., which is being probed by German regulators, may be at risk of a “substantial loss.”


Will Canadian banks charge companies for deposits?  

banknews.tv/docs/depgrowthimpact2.pdf

Mark Sibthorpe

In light of today’s possible rate cut, this report discusses how a bank rate cut and capital ratio pressure could precipitate negative corporate deposit interest rates in Canada.


Canadian Tire's (CTC) - Canadian Tire Financial Services (CTFS) Scotia deal overview and risk assess  

banknews.tv/docs/ctfsfinal.pdf

Mark Sibthorpe

Review of the Canadian Tire Financial Services deal with Scotiabank, risks, opportunity and benefits.


Finance minisiter scorecard August 26, 2015  

banknews.tv/docs/Scorejo-August-2015.pdf

Mark Sibthorpe

This report looks at Joe Oliver, minister of finance’s progress to date, and assigns a grade to his government’s performance to date.


Xtreme Branch  

banknews.tv/docs/xbranch.pdf

Mark Sibthorpe

Branches are evolving to meet the digital age. This documents tracks the evolution with real-world examples.


Canadian Nudge  

banknews.tv/docs/nudge.pdf

Mark Sibthorpe

Whether he knew it or not, Tom Reid, a senior vice-president at Sun Life, made a case for the behavior modification concept ‘Nudging’ when he recently proposed auto-enrolling Canadians in his company’s pension plans. Sun life cover 1.2 million Canadians, about 60% of the eligible employees.
According to Reid,


CWB cause for concern  

banknews.tv/docs/cwbupdate.pdf

Mark Sibthorpe

In an earlier report BankNews.TV expressed concerns about CWB. Here are 5 charts that show cause:
1. First earnings drop in years;
2. Deposits dropping which will increase cost of funds in the future.


BNTV Overview  

banknews.tv/docs/overviewpdf.pdf

BNTV

BankNews.TV Publishing Corp services overview document:

  • Analytics
  • Financial services industry monitor (FSIM) industry briefings and developments reports
  • Research


Challenger banks not a threat to big banks  

banknews.tv/docs/challenger.pdf

Mark Sibthorpe

This report looks at Canadian challenger banks (apart from merchant led banks) and explains why they have not threatened larger institutions. It also looks at ways in which these upstarts have achieved success.


Gamification of financial data project  

banknews.tv/docs/GamingEventProposal-printsample--en-final.pdf

Mark Sibthorpe

This document contains details on how BankNews.TV is helping kids learn programming via gamification of financial data.


The impact a rate rise will have for Canadian banks  

banknews.tv/docs/irr-f.pdf

Mark Sibthorpe

Canadian banks have made money throughout the credit crisis, but this trend may be about to reverse. The rational supporting this prediction is that revenue has grown despite a declining net interest margin (NIM). It has grown in spite of this fact because Canadian debt (loan lease volume) has risen significantly, as shown in chart 2.

This report looks at the issues facing Canadian banks in the event of a Bank Rate rise.  


FIFA: the new goldenballs  

banknews.tv/docs/goldenballs.pdf

Mark Sibthorpe

Yesterday, the Attorney General of Switzerland (OAG) opened criminal proceedings related to the FIFA scandal. This report outlines some of the events related to the criminal investigation, with a particular focus on banking.


Scorecard Minister of Finance: JIm Flaherty  

banknews.tv/docs/Scorecard Min Fin Flaherty April 8 2014.pdf

Mark Sibthorpe

March 18, Finance Minister Jim Flaherty resigned from cabinet after having endured a difficult year due to health issues. This report looks at his legacy and attempts to grade his government’s performance to date.


Sample RFP for a Loyalty Program  

banknews.tv/docs/sample RFP for a loyalty program.pdf

Mark Sibthorpe


Merchants extend financial services  

banknews.tv/docs/merchantfs.pdf

Mark Sibthorpe

Merchant led financial services are growing in importance once again. This is exemplified in the ongoing UK rivalry between ASDA, Sainsbury and Tesco. Together these merchant/financial service companies provide the backstop for three different approaches for merchants looking to extend their financial services.


Hot Money: real-estate  

banknews.tv/docs/hotmoney.pdf

Mark Sibthorpe

Canadian and London real estate, like Macau, may also be a convenient means for China’s elite to move money offshore; with the deleterious effect of driving up home values. Louise Shelley`s research concurs. In a published paper written for the National Defense University, Shelley argues that money laundering in real estate (MLRE) increases prices.


Currency Cheat Sheet: a guide for the rest of us  

banknews.tv/docs/currencycheatsheet.pdf

Mark Sibthorpe

Readers of this document will be presented with monetary policy issues and facts
that show the USD will likely remain the dominant reserve currency, despite
questionable Chinese practices, record US debt levels, and a shaky economy.


Riches to Rags? Summary of possible risks for Genworth MI CANADA, INC.  

banknews.tv/docs/gq4risk.pdf

Mark Sibthorpe

Genworth had its Q4 2014 earnings call. Genworth own about 30% of the mortgage default insurance in Canada. Not surprisingly, the earnings call became focussed on Alberta; and for good reason, with 20% of its outstanding insured mortgage balance in Alberta, sensitivity to the oil shock and how Genworth plan to manage related risks were discussed in detail.


Canadian Western Bank Competitive Forecast  

banknews.tv/docs/cwbf.pdf

Mark Sibthorpe

Based on historical financial data (see detailed charts pages 5-8), the oil based recession in Alberta, and comparison against two of its peers, this document outlines my observation with respect to CWB’s future performances.


Liquid Canada: the tipping point  

banknews.tv/docs/Liquid.pdf

Mark Sibthorpe

This report examines liquidity issues in the Canadian financial service industry.


Bank Fees  

banknews.tv/docs/Bank fees.pdf

Mark Sibthorpe

Recently the CBC and The Globe and Mail both reported on what has been referred to as a consumer “bank fee outcry”. CBC compares banks to cable and phone companies, standing accused of trying to gouge customers with service fees. The backlash appears to have originated in conjunction with the NDP and the Consumers Council of Canada which argues that there is anxiety ‘among consumers about banking fees’.


Cheap Oil Report  

banknews.tv/docs/co2.pdf

Cheap oil has pushed the Bank of Canada's governor, Stephen Poloz onto a slippery slope. For some background on this, take October 22nd, when Poloz bid farewell to forward guidance, resulting in yesterday's surprise rate cut. A cut that has enraged TD and other banks, which see this as eroding profits.
 


Canada's Economy, a strategic solution  

banknews.tv/docs/ces.pdf

This report explores Canada's strategies to compete globally. The report begins with an analyses of the housing market, because housing is the canary in the coal mine; explores what happens in the event of collapse; and analyses the underlying problem causing Canada to be uncompetitive.
 


Complete loyalty RFP  

banknews.tv/docs/booksample.pdf

Merchants that want to understand loyalty, credit and mobile payments should read this book. It offers readers a step-by-step methodology for evaluating and transforming credit and loyalty programs. The strategies are based on proven examples and facts. The Nectar, Target, Canadian Tire and Walmart case studies are examples of the practical approach I have taken, written with the intent that merchants can use them as blueprints for their own initiatives.
 


Mobile Payments Blueprint: guide to credit and loyalty transformation for merchants  

banknews.tv/docs/booksample.pdf

Merchants that want to understand loyalty, credit and mobile payments should read this book. It offers readers a step-by-step methodology for evaluating and transforming credit and loyalty programs. The strategies are based on proven examples and facts. The Nectar, Target, Canadian Tire and Walmart case studies are examples of the practical approach I have taken, written with the intent that merchants can use them as blueprints for their own initiatives.
 


Report on merchants extending financial services  

banknews.tv/docs/

Special report explaining why some merchants in the UK, U.S. and Canada are expanding their financial services. The paper discusses the structural and regulatory pressures facing merchants and explains the rational behind key decisions. This is an 8 page high level report
 


Guide to system selection  

banknews.tv/docs/gssnow.pdf

Read sample report: Guide to system selection. This sample would normally cost $99 but is available free as a sample. Click here view sample report.


News feed

HOW ECONOMICAL PLANS TO REMAIN INDEPENDENT AFTER DEMUTUALIZATION

Canadian Underwriter - Greg Machbach (2018-08-10)

If Economical Insurance becomes publicly-traded on the stock exchange, it could eventually be acquired, but company officials have no intention of making Economical an easy acquisition target.


BANK OF CANADA WARNS SPOILS OF INNOVATION IN HANDS OF A FEW ‘SUPERSTAR’ TECH GIANTS

G&M - Barrie McKenna (2018-08-08)

The Bank of Canada is calling for tougher regulation to thwart a growing concentration of the spoils of innovation in the hands of a clutch of "superstar" tech giants.


MONEYSUPERMARKET SETS UP FINTECH JV TO DIGITISE THE MORTGAGE MARKET

Finextra - Finextra (2018-07-20)

Moneysupermarket already attracts up to 16 million visitors to its mortgage website each year - representing around 25% of mortgage search traffic. Traditionally users find the best loan to suit their needs and complete the deal offsite with a third party mortgage broker. Podium's aim is to act as an onsite mortgage broker, digitising the application process and doing away with the paper trail.


TILRAY INC. BECOMES FIRST CANNABIS GROWER TO COMPLETE AN IPO IN THE U.S.

G&M - Christina Pellegrini (2018-07-20)

It started 18 months ago when the Nanaimo, B.C.-based company began weighing a Canadian listing and held meetings with potential investors on both sides of the border. Then last summer, its plans shifted after 15 American asset managers told Tilray they’d be much more compelled to invest if it went public on a major U.S. exchange.


WHO’S GETTING RICH OFF CANNABIS? INSIDER TRADING DATA REVEAL THE BIG SELLERS

G&M - David Milstead (2018-07-20)

The boom in marijuana stocks has allowed insiders at the industry’s biggest companies to sell $250-million worth of stock in the past year – but if share prices hold, there’s still hundreds of millions more for them to make.


LEGAL SHOWDOWN NEARS AS CRA ASKS FOR $110-MILLION IN UNPAID TAXES FROM TFSA HOLDERS

G&M - Clare O'Hara (2018-07-20)

A battle has erupted between the Canada Revenue Agency and day traders who argue that they’ve been unfairly targeted to repay millions of dollars in unpaid taxes because of their use of tax-free savings accounts.


NOVA SCOTIA UNVEILS CANADA’S FIRST COMBINED LIQUOR AND CANNABIS RETAIL STORE

G&M - Jessica Leeder (2018-07-20)

Nova Scotia has unveiled what is believed to be the only retail model in the world that combines liquor beverage sales with recreational cannabis under one roof.


FROM DIRE TO DOABLE (FINGERS CROSSED): THE TRANSFORMATION OF CANADA’S HOUSING MARKET

G&M - Michael Babad (2018-07-20)

Things suddenly look less dire for Canada’s housing market.


'I'M NOT THRILLED': TRUMP BLASTS FED’S RATE HIKES, TRESPASSING ON CENTRAL BANK'S INDEPENDENCE

FP - Christopher Condon and Craig Torres (2018-07-20)

President Donald Trump criticized the Federal Reserve’s interest-rate increases, breaking with more than two decades of White House tradition of avoiding comments on monetary policy out of respect for the independence of the U.S. central bank.


LOBLAW MISUSED BARBADOS-BASED SUBSIDIARY TO AVOID TAXES, CRA LAWYERS SAY

FP - AP (2018-07-20)

There is “absolutely nothing” connecting Glenhuron to Barbados, she told Justice Campbell Miller, and the subsidiary was established to avoid paying tax.


FAMILY'S $500K INHERITANCE SEIZED BY U.S. BORDER OFFICIALS

CBC - Ashley Burke (2018-07-20)

An Ottawa man acting as executor of a will says TD Canada Trust gave him "faulty advice" to mail $500,000 in bank drafts to family members in the U.S. — a move that caught the attention of U.S. border officials, who seized the money. 


ALLEGATIONS OF INFLATED PROPERTY VALUES AT CENTRE OF RCMP SYNDICATED MORTGAGE FRAUD INVESTIGATION

CBC - Jennifer Lavasseur (2018-07-20)

Inflated property values and the promotion of non-qualifying investments as being RRSP-eligible are some of the key allegations made by the RCMP in a search warrant application it filed to authorize an April raid on six Toronto-area offices. 


MUNICH RE ANNOUNCES RESTRUCTURING OF ITS DIVISIONS

Insurance Journal - IIJ (2018-07-20)

As part of this reorganization, Munich Re’s Special and Financial Risks (SFR) division will be disbanded with those units of SFR that operate globally being allocated to Global Clients/North America, headed by Peter Röder. Those units with a European operational focus will be assigned to the Europe/Latin America division. Doris Höpke will assume responsibility for this expanded division.


SSQ PARTNERS WITH ALLIANZ GLOBAL BENEFITS TO ENHANCE GROUP INSURANCE OFFERING

Insurance Journal - IIJ (2018-07-20)

"We are very proud to have concluded this agreement. This type of collaboration is a first for SSQ Insurance. By adding the expertise and global reach of Allianz Global Benefits to our service offer, we will be giving our current and future clients the advantages of international risk pooling," said Geneviève Fortier, SSQ Insurance's Senior Vice-President – Distribution.


BEAZLEY TAKES 64% DROP IN PRE-TAX PROFIT

Insurance Business - Terry Gancuangco (2018-07-20)

While the specialist insurer didn’t suffer a loss, its pre-tax profit for the first half of 2018 amounted to only US$57.5 million. This time last year it was enjoying earnings before tax of US$158.7 million.


GORE MUTUAL ROLLS OUT E&O COVERAGE FOR CONTRACTORS AND PROFESSIONALS

Insurance Business - Lyle Adriano (2018-07-20)

“The needs of our brokers’ business customers rarely fit inside a box and require flexibility on our end,” said Gore Mutual director of commercial insurance Ed Nesbitt. “As part of our new commercial offering we’re improving the way we work with brokers with a common-sense approach to underwriting, technical expertise, modern products and more.”


WHERE CANADIAN DRIVERS PAY THE MOST (AND LEAST) FOR AUTO INSURANCE

Canadian Underwriter - Jason Contant (2018-07-20)

In B.C. last year, average annual auto premiums were $1,680. The second-costliest province for auto premiums was Ontario, at $1,445.


TRUMP TAKES A RARE PRESIDENTIAL SWIPE AT THE FED

NY Times - Jim Tankersley (2018-07-20)

President Trump criticized the Federal Reserve on Thursday for raising interest rates, a rare rebuke by a sitting president that upends longstanding White House protocol to avoid commenting on monetary policy.


CHINA FIRMS WENT DEEP IN DEBT. HERE COME THE DEFAULTS

Bloomberg - Bloomberg Video (2018-07-20)

Chinese companies are facing a reality check after years of ramping up debt. The deleveraging campaign that President Xi Jinping began in 2016 to curb risks in the nation’s financial markets has cracked down on shadow financing and tightened rules on asset management. As a result, firms are having a tough time raising new funds to repay existing debt, leading to a record amount of bond defaults this year.


DTCC MAKES BREXIT BREAK TO IRELAND

Finextra - Finextra (2018-07-19)

"Our continued growth and desire to get ahead of new regulatory obligations, because of Brexit, now takes us across the Irish Sea to Dublin,” says Simon Farrington, managing director, Emea at DTCC. “We look forward to hiring and developing a local team, and working with lawmakers, regulators, trade associations and other key industry stakeholders to ensure the success of our new operations in Ireland.”


AURORA, MEDRELEAF SHAREHOLDERS CLEAR PATH TOWARD CANADA’S LARGEST CANNABIS DEAL

G&M - Christina Pellegrini (2018-07-19)

Aurora Cannabis Inc.’s takeover of MedReleaf Corp. is set to close next week after shareholders of both cannabis growers voted on Wednesday to approve the $3.2-billion acquisition.


BDC TO SPIN OUT TWO TECH VC FUNDS

G&M - Sean Silcoff (2018-07-19)

Two Business Development Bank of Canada venture capitalists are setting out with their own independent fund backed by tens of millions of dollars from U.S. fund giant Fidelity Investments, the first step in a significant shift by the federal agency in how it finances Canada’s growing technology sector.


THE BOND MARKET SAYS TO BE SCARED. SHOULD INVESTORS FRET?

G&M - Tim Kiladze (2018-07-19)

A worrying shift in the United States bond market has sparked a fight among economists and market strategists – a squabble that comes with potentially severe consequences. If the pessimists are proven right, a recession is likely on its way.


THE FRONT-LINE FIGHTERS OF THE FINANCIAL CRISIS ARE GETTING NERVOUS ABOUT THE NEXT ONE

FP - Rich Miller (2018-07-19)

Ben Bernanke, Timothy Geithner and Henry Paulson all voiced varying degrees of concern about America’s ability to combat another financial meltdown 10 years after they played prominent roles battling the last one.


ADVISORS BEARISH ON CANADIAN EQUITIES

Insurance Journal - IIJ (2018-07-19)

Forty-seven per cent of Canadian investment advisors surveyed were bullish on Canadian equities. This is a slight decline compared to the 48 per cent of advisors who stated they were bullish on the S&P/TSX 60 Index Horizon ETFs as indicated in the previous Q2 Advisor Sentiment Survey.


AIG FINALIZES VALIDUS HOLDINGS ACQUISITION

Insurance Business - Alicja Grzadkowska (2018-07-19)

A big-ticket acquisition reported earlier in the year is finally done. After announcing plans to acquire Validus Holdings, Ltd. in January, American International Group (AIG) has now completed the deal after it got the go-ahead from regulators and Validus shareholders.


SCM INSURANCE SERVICES ACQUIRES AFFIRMATIVE RISK MANAGEMENT

Insurance Business - Bethan Moorcraft (2018-07-19)

SCM Insurance Services, Canada’s largest independent, privately owned insurance services provider, has announced the acquisition of Arkansas-based Affirmative Risk Management (ARM). 


ICBC: 2017 SAW A RECORD-BREAKING 350,000 CAR COLLISIONS

Insurance Business - Lyle Adriano (2018-07-19)

The Insurance Corporation of British Columbia (ICBC), currency struggling with its financial condition, has posted its automobile crash records for 2017 – and they are not encouraging.


THE CLIENT THAT SHOULD RESEMBLE A JAIL

Canadian Underwriter - Greg Meckbach (2018-07-19)

If a commercial underwriter gets an application for insurance from a cannabis grower, the insurer “will have to do the due diligence” to make sure the client is complying with federal regulations on physical security, said Richard Provost, a partner with Langlois lawyers LLP in Montreal, in an interview.


AS HURRICANE SEASON ARRIVES, U.S. HOMEOWNERS HAVEN’T FIXED THEIR BIG UNDERINSURANCE PROBLEM

WSJ - Nicole Friedman, Leslie Scism (2018-07-19)

Three major landfalling hurricanes in 2017—Harvey, Irma and Maria—revealed a widespread lack of full insurance coverage for homeowners in Texas, Florida, Puerto Rico and elsewhere. Those storms served as a wake-up call to some, but the underinsurance of Americans persists, according to regulators, trade groups and government data.


MORGAN STANLEY WRAPS UP BIG-BANK EARNINGS WITH 39% PROFIT GROWTH

WSJ - Liz Hoffman (2018-07-19)

Morgan Stanley’s second-quarter earnings rose 39% from a year ago, wrapping up a big-bank earnings season that showed continued strength in the economy and few signs that global tensions are spilling over into the financial sector.


DID GOLDMAN SACHS JUST EDGE AWAY FROM ITS BONUS CULTURE?

NY Times - Peter Eavis (2018-07-19)

The number in question is Goldman Sachs’s compensation ratio, or the percentage of the bank’s revenue it spends on pay and benefits. Goldman Sachs set aside 37 percent of its revenue for compensation in the second quarter. That was well below the 41 percent for the same period last year and marked the biggest drop in years.


CANADA IS CONSIDERING A RISKY MOVE TO FUND MORE MORTGAGES WITH FOREIGN CAPITAL

Better Dwelling - Stephen Punwasi (2018-07-19)

Uninsured mortgages in Canada are funded by a variety of sources, but senior notes and deposits are the big ones. Senior notes are unsecured, and consequently have to pay a nice premium to be paid out. After all, if the issuer goes bankrupt, there goes your investment. Investors need a small risk premium for that. Deposits need cash, which only grows as quick as your clients can make money. Neither method can scale at the rate banks push mortgage growth post Great Recession. That’s when Canada got covered bonds.


POT CANDIES, VAPING SNUFFED OUT FOR NOW IN CANADIAN LEGALIZATION

Bloomberg - Jen Skerritt and Josh Wingrove (2018-07-19)

A key segment of Canada’s marijuana industry will remain banned for up to a year after the drug becomes legal for recreational use -- making it harder for Justin Trudeau to kill off the black market.


TRUMP’S TRADE WAR MAY SPARK A CHINESE DEBT CRISIS

Bloomberg - Anne Stevenson-Yang (2018-07-19)

There’s no chance China will cut its trade surplus with the U.S. in response to President Donald Trump’s tariff threats. For starters, Washington has made no specific demand to which Beijing can respond. But its efforts may have an unexpected side effect: a debt crisis in China.


ACTUARIAL REPORT: CANADA'S STUDENT LOAN PROGRAM

OSFI - OSFI (2018-07-19)

Effective 1 August 2000, the Government redesigned the delivery of the Canada Student Loans Program (CSLP) from one delivered by chartered banks to one directly financed by the Government. As part of this redesign, the Office of the Chief Actuary was given the mandate to conduct an actuarial review to provide a precise assessment of the current costs of the CSLP, a long-term (25 years) forecast of these costs, as well as a portfolio projection. The results are presented on a loan year basis from 1 August to 31 July.


GOOGLE SAID TO BE FINED RECORD $5-BILLION BY EU OVER ANDROID

G&M - AOIFE WHITE AND NIKOS CHRYSOLORAS (2018-07-18)

Google will be fined around 4.3 billion euros (US$5-billion) by the European Union over Android apps on Wednesday, setting a new record for antitrust penalties, according to a person familiar with the EU decision.


BMO-OWNED INVESTMENT DEALER EYES U.S. ENERGY SECTOR

G&M - Alexandra Posadzki (2018-07-18)

The oil and gas sector has fallen out of favour with many investors, but top bankers at BMO Nesbitt Burns say the rhetoric about it being a “sunset industry” is overblown.


CANNABIS COMPANY APHRIA EXPANDING TO SOUTH AMERICA, JAMAICA WITH ACQUISITION

https://www.theglobeandmail.com/cannabis/article-aphria-expanding-to-south-america-jamaica-with-acquisition/ - CP (2018-07-18)

Aphria Inc. says it’s preparing to expand its cannabis business into South America and Jamaica by acquiring a subsidiary of Scythian Biosciences Inc. for an undisclosed price.


FEDERAL RESERVE BOSS TELLS CONGRESS TO GET ITS HOUSE IN ORDER: DON PITTIS

CBC - Don Pittis (2018-07-18)

The world's most powerful central banker, U.S. Fed chair Jerome Powell, says strong inflation and low unemployment mean the country's economic boom is set to continue.


MOODY'S UPGRADES CREDIT RATING OUTLOOK FOR CANADA'S MAJOR BANKS

CBC - CBC (2018-07-18)

Moody's Investors Service raised its credit rating outlook on Canada's major banks on Tuesday, just over 14 months after it lowered the ratings citing high debt levels and soaring house prices.


1 IN 6 CANADIANS STRUGGLING WITH FINANCES, ANGUS REID SURVEY FINDS

CBC - CBC (2018-07-18)

Those in the "struggling" group — roughly 16 per cent of the population — have faced at least four of the 12 situations, and roughly 77 per cent of them are experiencing at least one on an ongoing basis. 


BUSINESS LEADERS VIEW CANADA AS LESS COMPETITIVE

Insurance Journal - IIJ (2018-07-18)

Canada continues to be seen as less competitive when compared with the United States, according to a survey of business leaders released July 17 by the Chartered Professional Accountants of Canada (CPA Canada).


IBAC COMMENDS SEPARATION OF BANKING AND INSURANCE

Insurance Business - Lyle Adriano (2018-07-18)

The Insurance Brokers Association of Canada (IBAC) has issued a statement following the passage of Bill C-74, thanking the Parliamentarians for their work on the legislation.


STEERING THE COURSE: COURSE OF CONSTRUCTION (COC) INSURANCE OPTIONS

Canadian Underwriter - Neil Jeanson (2018-07-18)

When a construction company is in the midst of building something great, it’s painful to see its sudden destruction and then have to muster up the wherewithal required to start all over again.  It can be particularly painful if the ability to rebuild is hindered by finance issues or insurance disputes.  These are exactly the times when a construction firm realizes that value, and the quality, of its course of construction insurance coverage.


U.S. STOCKS HIGHER AFTER FED CHAIRMAN JEROME POWELL’S TESTIMONY

WSJ - Jon Sindreu, Allison Prang (2018-07-18)

U.S. stocks rose Tuesday following Federal Reserve Chairman Jerome Powell’s Senate testimony, while investors also continued dissecting the latest round of corporate earnings results.


GOLDMAN SACHS PRESSED ON STRATEGY AS DAVID SOLOMON CONFIRMED AS NEW CEO

G&M - MATT SCUFFHAM AND APARAJITA SAXENA (2018-07-18)

Goldman Sachs Group Inc. was pressed for details on new businesses after an uneven second-quarter performance, a likely preview of challenges incoming chief executive officer David Solomon will face as he leads the Wall Street bank’s overhaul.


BANK IN BLACK

Reuters - Reuters-video (2018-07-17)

With Bank of America the latest to report earnings, following JPMorgan, Citigroup and Wells Fargo last week, Antony Currie explains how investors are looking at big U.S. lenders a decade after the financial crisis.


HEDGE FUNDS END FIRST HALF IN THE RED AS TRADE WAR ROILS MARKETS

Bloomberg - Adam Manzor and Kimberly Yuen (2018-07-17)

Funds declined 0.33 percent for the year and slid 0.64 percent in June, wiping out gains seen in May, according to Bloomberg Hedge Fund Database.


HELLO WORLD CANADA: THE RISE OF AI

Bloomberg - Bloomberg Video (2018-07-17)

Bloomberg Businessweek presents an exclusive premiere of the latest episode of "Hello World," the tech-travel show hosted by journalist and best-selling author Ashlee Vance and watched by millions of people around the globe. There's an AI revolution sweeping across the world. Yet few people know the real story about where this technology came from and why it suddenly took off. In this ground-breaking episode of "Hello World," the story of AI's rise is told in detail for the first time, as journalist Ashlee Vance heads to the unexpected birthplace of the technology, Canada. (Source: Bloomberg)


OSC ISSUES WARNING ABOUT HQBROKER

Insurance Journal - IIJ (2018-07-17)

“HQBroker manages the website hqbroker.com, where it claims to offer a variety of trading solutions to retail and institutional investors through contracts for difference, derivatives and forex currency pairs,” says the alert.


IA FINANCIAL GROUP IS RELYING ON INDEPENDENT DISTRIBUTION TO EXPAND MARKET SHARE

Insurance Journal - Alain Theriault (2018-07-17)

As the trend of insurers acquiring MGAs increases, iA Financial Group wants to intensify the expansion of its independent distribution network to compete with “the big three” insurers.


WHY ARE SOME INSURERS RELUCTANT TO COVER MEDICAL CANNABIS?

https://www.insurancebusinessmag.com/ca/news/breaking-news/why-are-some-insurers-reluctant-to-cover-medical-cannabis-106127.aspx - Lyle Adriano (2018-07-17)

With recreational cannabis set to be legalized later this year, some group benefits insurers still have issues about covering medical marijuana.


BLOCKCHAIN IN INSURANCE MARKET EXPECTED TO SURGE

Insurance Business - Ryan Smith (2018-07-17)

The global blockchain in insurance market is projected to grow from 2018’s US$64.5 million to US$1.393.8 million by 2023, a compound annual growth rate of 84.9%, according to a new study from ReportLinker.


WHAT IMPACT WILL LEGALIZATION HAVE ON EMPLOYERS?

Insurance Business - Contributor (2018-07-17)

The legalization of cannabis for recreational purposes throws up a number of issues for employers and, frustratingly, the legislation is only the first and biggest step towards a clear legal framework. While there is bound to be litigation around several aspects of the new Act, employment law is the area likely to require the most clarification, in court.


HOW A $395 GADGET CAN PREVENT A $43,000 FLOOD CLAIM

Canadian Underwriter - David Gambrill (2018-07-17)

“The reason why we started the company is that we actually owned properties that ended up with floods and seeing water damage in them – things that were absolutely preventable,” Tsintzouras told Canadian 


TWO 100-YEAR-OLD MUTUAL INSURERS VOTE TO AMALGAMATE

Canadian Underwriter - David Gambrill (2018-07-17)

The two mutuals held separate special general meetings Tuesday on the proposed amalgamation, scheduled to take effect January 1, 2019. The amalgamation still requires regulatory approval.


RBC EYES INVESTMENT-BANKING GROWTH IN U.S. AND EUROPE WITH SLEW OF HIRING

G&M - Alexandra Posadzki (2018-07-16)

The Royal Bank of Canada is beefing up its investment-banking presence in the U.S. and Europe as it braces for disruption stemming from a tide of protectionism sweeping the world.
“The U.S. is really the most attractive market there is for capital-markets businesses,” Mr. Neldner said, citing business-friendly government policies and recent tax changes that have enhanced profitability.


WILL OVER-REGULATION OF CANNABIS HELP SUSTAIN THE BLACK MARKET?

G&M - Tony Coulson (2018-07-16)

With the legalization of cannabis, the Government of Canada has a range of objectives: protecting children and youth by limiting their exposure and access to cannabis; protecting adult consumers by establishing a secure and high-quality supply of legal cannabis; and diminishing the black-market role in the Canadian cannabis market.


WHAT ANALYSTS ARE SAYING AS U.S. BANK STOCKS SINK ON DISAPPOINTING EARNINGS

G&M - FELICE MARANZ, LILY KATZ AND AUSTIN WEINSTEIN (2018-07-16)

U.S. bank stocks are hurting after disappointing second-quarter results from Wells Fargo and Citigroup, and as JPMorgan’s earnings beat wasn’t enough to boost investor confidence. Analysts are zeroing in on sliding loans and deposits, while Wells Fargo was also hurt by the Federal Reserve’s asset cap.


IN ERA OF TRADE UNCERTAINTY, THE BANK OF CANADA’S STEPHEN POLOZ WAS MADE FOR THIS MOMENT IN HISTORY

FP - Kevin Carmichael (2018-07-16)

Time flies. Stephen Poloz has now begun the sixth year of his seven-year term as Bank of Canada governor. The 62-year-old still has lots of road in front of him, but he’s now crossing into legacy territory, where assessments of his policy decisions will be mixed with debate about his accomplishments and mistakes.


THE FLATTENING YIELD CURVE HAS SOME WORRIED ABOUT A RECESSION, BUT NOT POLOZ

FP - Joe Chidley (2018-07-16)

Let’s look into the first hand. It’s accepted wisdom that an inverted yield curve precedes a recession, because it pretty much always has before. It’s not magic, either, just simple market mechanics. When the curve flattens or inverts, it’s because the market expects the economy to turn down and central banks to ease rates, stimulating banks, which lend long and borrow short, to make loans. In anticipation of that, investors get out of short-duration bonds and into long bonds, effectively locking in higher yields. As a result, long yields decline, while selling action on short-duration bonds pushes up their yields. Presto, change-o — the curve inverts. Recession ensues.


ETFS GATHER NET INFLOWS OF US$8.69 BILLION IN JUNE

Insurance Journal - IIJ (2018-07-16)

Exchange traded funds and exchange traded products listed globally gathered US$8.69B in net inflows – the lowest monthly amount since January 2014 when the global ETF/ETP industry experienced net outflows of US$6.25Bn, according to ETFGI, an independent research and consultancy firm.


ROGERS INSURANCE ENTERS PARTNERSHIP WITH BUILDER ORGANIZATION

Insurance Business - Lyle Adriano (2018-07-16)

“As a builder member organization that’s focused on delivering value to our members for over 40 years, we’re pleased to build on our core products and services and announce our new strategic partnership with Rogers Insurance,” said ANHWP CEO Lori Topp in a statement.


PNC EARNINGS BOOSTED BY INCREASE IN LENDING

WSJ - Christina Rexrode (2018-07-16)

PNC Financial Services Group Inc. posted better-than-expected second-quarter earnings Friday, boosted by an increase in lending and a lower tax rate.


NYSE OPPOSITION TO TRADING-FEE REVIEW PUTS COMPANIES AND SOME SHAREHOLDERS AT ODDS

WSJ - Gretchen Morgensen (2018-07-16)

The New York Stock Exchange is stirring tension between some of its big listed companies and their largest investors over regulators’ efforts to study the controversial practice of assigning fees and rebates to stock trades.


BANK EARNINGS CLIMB IN GROWING ECONOMY, BUT LENDING DOESN’T KEEP PACE

NY Times - Peter Eavis and Emily Flitter (2018-07-16)

Tax cuts, deregulation and a buoyant economy were always expected to drive profits higher at most American banks in the latest quarter.


GOLDMAN TO FORMALLY NAME DAVID SOLOMON NEXT CEO EARLY THIS WEEK - NYT

Reuters - Reuters (2018-07-16)

The announcement could be made as soon as Monday, the paper reported on Sunday citing sources, and will formally establish Solomon as the successor to Lloyd Blankfein.


OSFI SEEKS INDUSTRY INPUT ON THE DOMESTIC IMPLEMENTATION OF FINAL BASEL III REFORMS

OSFI - OSFI (2018-07-16)

OSFI invites stakeholders to comment on the discussion paper which will help to identify any implementation issues early on in the process.


TORONTO CONDO PRICES HIT A NEW HIGH AS INVENTORY RISES BACK TO 2016 LEVELS

Better Dwelling - Better Dwelling (2018-07-16)

The price of a typical condo hit a new all-time high across Greater Toronto. TREB reported a benchmark price of $502,400 in June, up 7.52% from the year before. The City of Toronto’s benchmark price rose to $529,300, a 9.10% increase. The city continued to outperform the suburbs on both monthly and annual increases.


CRYPTOCURRENCIES GO MAINSTREAM: CFA INSTITUTE ADDS BLOCKCHAIN COURSES TO ITS CURRICULUM

G&M - Clare O'Hara (2018-07-16)

The burgeoning asset class of cryptocurrencies has been given a boost in credibility thanks to the CFA Institute expanding its global curriculum to include courses in blockchain and virtual currencies.


UNEQUAL PARTNERS: A BREAKDOWN OF HOW MANY HOLD HOW MUCH OF CANADA’S WEALTH

G&M - Michael Babad (2018-07-16)

Inequality may be more extreme in the United States and other countries than it is here, but an OECD working paper sheds new light on wealth and income distribution in Canada.


U.S. CREDIT MARKET OFFERS A DIFFERENT KIND OF WARNING ABOUT POSSIBLE RECESSION

G&M - Richard Leong (2018-07-16)

A reliable bond market indicator may be waving the flag that a U.S. recession is coming, market watchers said, and it is not the flattening yield curve.


MORGAN STANLEY INFRASTRUCTURE MAKES OFFER TO TAKE OVER GERMANY’S VTG

Reuters - Reuters (2018-07-16)

Morgan Stanley Infrastructure announced a cash takeover offer for rail logistics group VTG on Monday after securing a large stake from German billionaire Klaus Michael Kuehne.


DESPITE TRADE THREATS CANADIAN HOME BUYERS MUST PLAN FOR STILL HIGHER RATES: DON PITTIS

CBC - Don Pittis (2018-07-16)

Of course, when the future is unknowable, planning for higher rates is always prudent. But a look at the latest data and a careful reading of last week's comments by Bank of Canada governor Stephen Poloz suggest prudence is especially important just now.


GOLDMAN SACHS TAKES ANOTHER STEP TOWARD ITS POST-BLANKFEIN ERA WITH PLANS TO ANNOUNCE NEXT CEO

FP - Sam Mamudi and Marcus Wright (2018-07-16)

The investment bank plans to name company President David Solomon — whom Blankfein has publicly referred to as his successor — as its next CEO as soon as Tuesday, when it’s set to announce second-quarter results, according to a person with knowledge of the matter. Solomon will take the top job at a later date, with Blankfein staying on in the CEO role for an interim period, the person said.


CANADA HOUSING PRICES SHOW SIGNS OF STABILIZING, REPORTS SUGGEST

G&M - Andrea Hopkins (2018-07-13)

Canadian home prices rose in June from May, pushing prices just barely above their 2017 peak, while new home prices were flat again in May, according to separate reports on Thursday that signaled a housing market swoon may be stabilizing.


BIG MONEY TESTS CANNABIS WATERS, WITH HEDGE FUNDS LEADING THE CHARG

FP - Kristine Owram (2018-07-13)

As Canada moves toward legalization of recreational marijuana on Oct. 17 and the U.S. shows signs of growing leniency, hedge funds such as Navy are leading the advance of institutional money into a sector that’s so far been dominated by retail investors.


FROM 14 TO 80 PER CENT: THE REMARKABLE RECOVERY BY TWIN BUTTE'S DEBENTURE HOLDERS

FP - Barry Critcheley (2018-07-13)

And for the debenture holders — who anted up $85 million in late 2013 to receive a 6.25-per-cent interest rate for five years and the right to convert into Twin Butte common shares at $3.05 a share — the receivership process, during which a new buyer emerged, has been very rewarding.


MILLENNIALS FACE BARRIERS TO INVESTING, SAYS OSC STUDY

Insurance Journal - IIJ (2018-07-13)

The Ontario Securities Commission today released a new study on the significant obstacles to investing encountered by Ontario millennials and how investment industry stakeholders can develop and refine products, programs and services to meet millennials' needs.


SUN LIFE EXPANDS MUSICAL INSTRUMENT LENDING PROGRAM TO THE MARITIMES

Insurance Journal - IIJ (2018-07-13)

Residents of the Halifax area will now be able to borrow musical instruments from the Halifax Public Libraries free of charge, thanks to the Sun Life Financial Musical Instrument Lending Library program.


CHUBB APPOINTS US INDUSTRY VETERAN AS EUROPEAN PERSONAL RISK HEAD

Insurance Business - Ryan Smith (2018-07-13)

Chubb has announced that Annmarie Camp, currently the company’s executive vice president of personal insurance national sales and distribution for North America, has been appointed as head of its European Personal Risk Services division. In her new role, Camp will have responsibility for the performance of the company’s high-net-worth personal lines business in continental Europe and the UK. She will report to David Robinson, executive vice president for Europe and division president for the UK and Ireland.


MUNICH RE REVEALS THE EXTENT OF NATURAL DISASTER LOSSES THIS YEAR

Insurance Business - Terry Gancuangco (2018-07-13)

At US$33 billion, overall losses for the first six months of 2018 amounted to about half of those of the previous year. Munich Re put is as the world’s natural disasters causing “significantly lower losses than usual.”  


TIPS FOR BROKERS ON INSURING HIGH-VALUE HOMES

Canadian Underwriter - David Gambrill (2018-07-13)

Ivor Shanks, a senior insurance broker with Central Agencies Ltd. in British Columbia, recently posted a LinkedIn message raising broker awareness about not putting high-value homes on Standard Build policies.


HOW BLOCKCHAIN WILL HELP BROKERS BYPASS TRADITIONAL INSURERS

Canadian Underwriter - David Gambrill (2018-07-13)

Black will price the risk of specific syndicates and sell fractional ownership in such pools in the form of tokens representing the unit value of each syndicate’s expected financial return. The insurer says this process makes participation in insurance syndicates more efficient and transparent via time-stamped and traceable transaction records recorded on the blockchain.


GOLDMAN SACHS, PRYSMIAN, OTHERS LOSE CHALLENGE AGAINST EU CARTEL FINE

Reuters - Yun Chee (2018-07-13)

“The General Court confirms the fines of over 300 million euros that the Commission imposed on the main European and Asian producers of (extra) high voltage power cables for their participation in a worldwide cartel,” judges said.


TERANET: CANADIAN REAL ESTATE PRICES DECELERATE, TORONTO PLUNGES FURTHER NEGATIVE

Better Dwelling - Daniel Wong (2018-07-13)


BRITISH COLUMBIA SIGNS SUPPLY DEALS WITH 31 CANNABIS PRODUCERS

G&M - Mike Hager (2018-07-12)

B.C. has inked deals with more than two dozen licensed cannabis producers to supply what is expected to become one of Canada’s largest markets for the drug, come legalization this October.


GOODBYE INVERTED YIELD CURVE? FED LOOKS FOR ALTERNATIVE SIGNALS TO GUIDE POLICY

Reuters - Howard Schneider (2018-07-12)

In the run up to previous downturns, the Fed has jacked interest rates to restrictive levels as it sought to temper inflation. This time, the central bank hopes for a softer landing with rates moving just high enough to avoid overheating without ending a nearly decade long expansion.


AUTO TARIFFS COULD HANDCUFF THE BANK OF CANADA, POLOZ WARNS

Bloomberg - Josh Wingrove (2018-07-12)

Canadians shouldn’t expect the Bank of Canada to immediately ride to the rescue if Donald Trump hits the country with auto tariffs.


HYDRO ONE CEO TO RETIRE AS ONTARIO'S DOUG FORD SHAKES UP UTILITY

Bloomberg - Maciej Onoszko (2018-07-12)

Getting rid of Schmidt, 60, was at the top of the agenda for Ford and his Progressive Conservatives who won a provincial election last month. The vote ended 15 years of rule by the Liberal Party which had partially privatized the electricity transmission and distribution company.


CHINA'S YUAN SINKS PAST KEY LEVEL, WILL TEST PBOC'S RESOLVE

Bloomberg - Bloomberg (2018-07-12)

The yuan sank as much as 1.1 percent in overnight offshore trading to 6.7249, its biggest loss since January 2016, as a trade conflict with the U.S. worsened. When the Chinese currency last weakened past 6.7 earlier this month, central bankers vowed to keep it stable and not deploy it as a weapon in the dispute -- helping spur a rebound. On Thursday, the People’s Bank of China set the daily reference rate at 6.6726, stronger than estimates compiled by Bloomberg.


RIPPLE BRINGS ON FACEBOOK’S KAHINA VAN DYKE TO INK PARTNERSHIPS

Pymnts - Pymnts (2018-07-12)

In a company announcement, Ripple said Van Dyke brings more than 20 years of experience in banking and technology, and will focus on driving new strategic partnerships for Ripple across the global financial services industry. Van Dyke was most recently at Facebook, where she led the global financial services team.


U.S. SET TO HIT CHINA WITH TARIFFS ON $200-BILLION OF GOODS IN TRADE-WAR ESCALATION

G&M - Adrian Morrow (2018-07-11)

The Trump administration is preparing to impose tariffs on US$200-billion more in Chinese goods, a move that would intensify the bruising trade war between the world’s two largest economies.


BANK OF CANADA PREVIEW: YOU’VE GOT UNTIL 10 A.M. ET TO NOT SWEAT HOW MUCH YOU OWE

G&M - Michael Babad (2018-07-11)

Household debt burdens in Canada are improving, but they’re still elevated, meaning adjustment for many families who borrowed on the cheap. Households now owe $1.68 for every dollar of disposable income.

That’s one of the reasons the central bank will be cautious going forward even if, as expected, it raises its key overnight rate this morning by one-quarter of a percentage point to 1.5 per cent.


TD BOLSTERS WEALTH MANAGEMENT BUSINESS WITH $792-MILLION DEAL TO BUY GREYSTONE

G&M - James Bradshaw (2018-07-11)

Toronto-Dominion Bank is jockeying for position as a leading asset manager for institutional clients with a $792-million cash-and-stock deal to buy Regina-based Greystone Managed Investments Inc.


CANOPY BUYING HIKU BRANDS, OWNER OF TOKYO SMOKE COFFEE SHOPS

G&M - Christina Pelligrini (2018-07-11)

Canopy Growth Corp. is acquiring Hiku Brands Co. Ltd., the owner of the Tokyo Smoke chain of coffee shops that sells cannabis accessories and clothing.


CANADIAN DOLLAR DIPS AS INVESTORS AWAIT BOC GUIDANCE, POTENTIAL RATE HIKE

G&M - Fergal Smith (2018-07-11)

Money markets see a greater than 90 percent chance that the central bank will lift its policy rate by 25 basis points, to 1.50 percent, which would be the fourth hike since last summer.


INSIDE GREYSTONE'S 30-YEAR JOURNEY FROM REGINA UPSTART TO TD TARGET

FP - Barry Critchley (2018-07-11)

In the early years, the new firm — owned by the pension funds with no employee ownership — operated as a utility and struggled in gathering assets and retaining key executives. For example, it had two chief executives (Frank Lamont and Kevin Kelly) in its first three years. Indeed it struggled for most of its first decade.


HUB INTERNATIONAL ACQUIRES INDEPENDENT FINANCIAL CONCEPTS GROUP

Insurance Journal - IIJ (2018-07-11)

Hub International announced July 10 that it has acquired Independent Financial Concepts Group Ltd. (IFCG), a managing general agency (MGA) based in Toronto.


ENDEAVOUR INSURANCE SERVICES NAMES KAREN ALLEN AS CEO DESIGNATE

Insurance Business - Ryan Smith (2018-07-11)

Lloyd’s broker and delegated authority specialist Endeavour Insurance Services has announced the appointment of Karen Allen as its CEO designate. Allen will join Endeavour in October.


FAIRFAX-BACKED INSURER SWOOPS FOR REINSURANCE FIRM

Insurance Business - Gabriel Olano (2018-07-11)

Digit Insurance, a general insurer backed by Fairfax Financial, will acquire India’s ITI Reinsurance for around INR5 billion (US$72.8 million).


THE HEALTH INSURERS SQUAWK

WSJ - Editorial Board (2018-07-11)

Over the weekend arrived some fresh political fury that the Trump Administration is trying to sabotage ObamaCare by suspending something called “risk adjustment” payments. Not so much.


DEVELOPING COUNTRIES MAY NEED THEIR OWN STRATEGIES TO COPE WITH JOB-TAKING ROBOTS

NY Times - Jamie Condliffe (2018-07-11)

new study by the economists Lukas Schlogl and Andy Sumner of King’s College London, written for the Washington think tank Center for Global Development, suggests that there is still a need to consider how developing countries will cope with the rise of automation. Most strategies to help workers displaced by robots, some of which look promising, have so far been devised for developed nations and may not translate to the developing world, they argue.


ARGENTINA’S CURRENCY CRISIS IS FAR FROM OVER

Economist - Economist (2018-07-11)

The year started badly for Argentina when the worst drought in 50 years hit the harvest of maize and soyabeans, both important exports. In May a stronger dollar and higher US Treasury yields prompted international investors to flee risky assets. Most emerging-market currencies suffered, Argentina’s especially. Its twin fiscal and current-account deficits have seen the peso lose more than a third of its value this year, making it the world’s worst-performing currency (see chart). A recession, the fifth in a decade, appears inevitable.


CITI READIES FOR ASIA INVESTMENT SURGE WITH NEW CHINA DESK AS TRADE WAR INTENSIFIES

Reuters - Staff (2018-07-11)

Citi plans to establish the desk in Mumbai, adding to a South Korea business desk in the capital New Delhi, Gerald Keefe told Reuters. The desks provide services such as trade finance, corporate loans, cash management and investment banking.


MORGAN STANLEY'S PICK PROMOTED TO HEAD OF INSTITUTIONAL SECURITIES: MEMO

Reuters - Lauren Tara Lacapra (2018-07-11)

The move, part of a broader executive shuffle that also moved Franck Petitgas from co-head of investment banking to head of Morgan Stanley’s international business, was disclosed in an internal memo seen by Reuters on Tuesday.


WHY CANADIAN BANK INVESTORS SHOULD SHUDDER WITH EACH RATE INCREASE

G&M - Ian McGugan (2018-07-11)

The Bank of Canada’s interest-rate decisions, often a rather humdrum affair, are becoming downright fascinating. The announcement on Wednesday of a hike, and the growing probability of more before year-end, suggest that the future will be very different than the past for Canadian banking stocks.


BANK OF CANADA BUYS ITSELF SOME BREATHING ROOM ON INTEREST RATES

G&M - STEVE AMBLER AND JEREMY KRONICK (2018-07-11)

Markets were not surprised by today’s Bank of Canada announcement to hike its overnight target rate by 25 basis points to 1.5 per cent. They had factored in a very high probability of an increase. And, consistent with a stated desire to improve its communications with both market participants and “the soccer dad,” it was a speech and a press conference that set the stage.


BANK OF CANADA REMAINS FOCUSED ON INFLATION, DESPITE WORRIES ABOUT IMPACT OF TRADE WAR AND TARIFFS

G&M - DAVID PARKINSON (2018-07-11)

The Bank of Canada looks prepared to fight a trade war the only way it knows how: by sticking with its focus on inflation to guide its rate decisions. But by its own admission, inflation could become a complicated target should the Canada-U.S. trade dispute deteriorate into a much bigger mess than it already is. Sadly, that’s a distinct possibility.


‘TRADE WAR IS JUST A WARM-UP ACT FOR FINANCIAL CRISIS’: MOBIUS

G&M - Scott Barlow (2018-07-11)

Equity futures fell hard after the close Tuesday on reports the White House has prepared a further US$200-billion in trade sanctions on Chinese goods. China vowed retaliation but also warned state media not to inflame the political situation further.


MORGAN STANLEY CEO CANDIDATE LIST TAKES SHAPE AMID EXECUTIVE SHUFFLE

G&M - Sonali Basak (2018-07-11)

Morgan Stanley’s Ted Pick was promoted to head the division that houses all of its investment bankers and traders, bolstering his position as a possible successor to chief executive James Gorman.


BANK OF CANADA RAISES BENCHMARK INTEREST RATE TO 1.5%, NOTING TRADE TENSIONS

CBC - CBC (2018-07-11)

Every six weeks, the bank meets to decide on what its interest rate will be, based on what it sees happening in the economy. This time, the bank has decided to raise its rate by 25 basis points — 0.25 percentage points — to 1.5 per cent. It's the fourth time the central bank has raised its rate since last summer.


ROYAL BANK RAISES PRIME RATE TO 3.7 PER CENT FOLLOWING BANK OF CANADA RATE HIKE

FP - CP (2018-07-11)

The increase will raise the cost of borrowing for customers with loans linked to the prime rate such as variable rate mortgages and lines of credit.


INSURANCE SALES VIA THE INTERNET WILL BE PERMITTED IN QUEBEC STARTING JUNE 2019

Insurance Journal - Hubert Roy (2018-07-11)

The regulatory framework that will allow insurance sales via the Internet will officially come into effect on June 13, 2019. In the meantime, Quebec regulator – the Autorité des marchés financiers (AMF) – will have the task of establishing that framework.


UBER CALLS FOR BLANKET INSURANCE MODEL IN MANITOBA - REPORT

Insurance Business - Paolo Taruc (2018-07-11)

Uber is reportedly calling for a blanket insurance model in Manitoba, a few months after ride-sharing services began in the province.


RATE COMPARISON BECOMING A WAY OF LIFE FOR CANADIANS

Insurance Business - Bethan Moorcraft (2018-07-11)

What do Canadians do before they book a holiday? They visit Expedia to find the best rates on flights and they go to Trivago to compare hotel prices. What do Canadians do when their insurance is up for renewal? They stay with their insurer and accept rate adjustments because it takes too much time and effort to shop around.


HOW THIS TOP-TIER CANADIAN BROKERAGE PLANS TO DOUBLE ITS REVENUE IN 5 YEARS

Canadian Underwriter - David Gambrill (2018-07-11)

Navacord Inc., Canada’s fifth-largest insurance brokerage by premium volume, has entered into an agreement that will see a management-led buyout of its minority capital partner, Fairfax Financial Holdings Ltd., with the support of Madison Dearborn Partners (MDP), a leading private equity firm based in Chicago.


BUYERS REMORSE? HERE’S HOW MANY TORONTO REAL ESTATE BUYERS WALKED AWAY LAST YEAR

Better Dwelling - Daniel Wong (2018-07-11)

If the numbers seem high, it’s because they are – especially compared to the year before. March 2017 saw 1.02% of sales removed, compared to just 0.64% the year before. April 2017 saw 1.39% of sales removed, up from 0.57% the year before. May 2017 came in at 1.28% of sales cancelled, up from 0.62% the year before. Yes, the ratio of cancelled sales more than doubled in some of those months.


WITHOUT CLEANUP ASSURANCES, INDIGENOUS GROUPS VOW TO BLOCK SALE OF NORMAN WELLS OIL FIELD

G&M - Jeff Lewis (2018-07-10)

Indigenous groups have pledged to block any sale of the Norman Wells oil field in Canada’s Far North without assurances that a buyer will pay for the massive cost of cleaning up the aging assets.


BANK OF CANADA WIDELY EXPECTED TO GET BACK ON ITS RATE-HIKING PATH

G&M - Andy Blatchford (2018-07-10)

Another hike this week would come with Canada facing a number of trade-related uncertainties, including NAFTA talks, U.S. steel and aluminum tariffs and the threat of more duties on the economically critical automotive sector.


CANADA A COUNTRY OF EXTREMES FOR STRENGTH OF HOUSING MARKETS

G&M - Michael Babad (2018-07-10)

“The increased use of macroprudential measures to curb price inflation along with escalating affordability constraints account for the index’s weaker performance,” said Knight Frank partner Kate Everett-Allen.


TD BANK SPEEDS UP JUNIOR BANKERS' PROMOTIONS TO ATTRACT AND KEEP YOUNG TALENT

FP - Sandrine Rostello (2018-07-10)

Toronto-Dominion Bank is speeding up promotion opportunities for junior investment bankers to retain young talent in what it describes as “an increasingly competitive environment across North America.”


HUB INTERNATIONAL PURCHASES TWO MORE BROKERAGES AND ANNOUNCES EMPLOYEE BENEFITS PLATFORM STRATEGY

Insurance Journal - IIJ (2018-07-10)

Hub International today announced that it has acquired Optimum Group Benefits & Insurance Services Ltd. based in Coquitlam, B.C. and Wm. W. Hammond Insurance Agency Incorporated based in Leamington, Ontario. Terms of the acquisitions were not disclosed.


FINEQIA PURCHASES STAKE IN BLOCKCHAIN-BASED INSURTECH

FP - Lyle Adriano (2018-07-10)

Based in Estonia, Black is looking to become a licensed insurer – enabling the underwriting of new insurance policies through insurance syndicates, similar to the Lloyd’s market. Through a blockchain platform, Black connects insurance brokers/MGAs/agents directly with capital, allowing them to essentially launch their own virtual insurance companies without the need for carriers.


WHAT DOES LEGALIZATION MEAN FOR THE WORKPLACE?

Insurance Journal - Contributor (2018-07-10)

Up until now, the only legal use of cannabis was for medicinal purposes, but this hasn’t stopped Canadians from using the drug recreationally. While most statistics about illegal drug consumption should be viewed with caution, it is fair to say that Canada has become one of the leading recreational consumers of cannabis, per capita.


THESE DIRECTORS RESIGNED FROM THEIR BOARD BUT STILL GOT SUED

Canadian Underwriter - Greg Machbach (2018-07-10)

Even though four directors and officers had resigned, citing a lack of cooperation with the company’s managers in China, they still found themselves named as defendants in a lawsuit alleging misrepresentation of the company’s financial statements.


DEUTSCHE BANK HIRES INVESTOR CERBERUS FOR PAID ADVISORY WORK

WSJ - Jenny Strassburg (2018-07-10)

Deutsche Bank has hired one of its top shareholders, New York private-equity firm Cerberus Capital Management LP, as a paid adviser to help the troubled lender tackle runaway costs and boost lagging profits.


U.S. MERGERS HELP BANK FEES SPIKE TO RECORD HIGHS

Reuters - Lynn Adler (2018-07-10)

The $8.1 billion earned in the first half of this year slightly topped the prior record $8 billion taken in during the second half of last year, setting a new peak, according to Freeman Consulting Services.


BANK OF CANADA’S EXPECTED HIKE IS SIX MONTHS IN MAKING FOR POLOZ

Bloomberg - Theophilos Aargitis (2018-07-10)

“The message is that the Bank of Canada sees the need for higher rates but has also made clear it needs to get sufficient economic data to confirm the economy can live with it,” Avery Shenfeld, chief economist at CIBC World Markets Inc., said in a phone interview. “There is no preset calendar to higher rates and how fast they come will depend on how well the economy does.”


SENIOR BARCLAYS EXECUTIVE RETIRES AS CHAIR OF EUROPEAN BANKING

FT - Martin Arnold (2018-07-10)

Makram Azar, one of the most senior bankers to attend the infamous Presidents Club dinner earlier this year, has retired from Barclays as its chairman of banking in Europe, the Middle East and Africa.


US BANKS COUNT ON TAX CUT WINDFALL TO BOOST PROFIT

FT - Alistair Gray (2018-07-10)

US banks are counting on a tax cuts windfall to deliver a profit surge, as world trade jitters threaten demand for corporate loans and a slowdown in the domestic mortgage market puts revenues under further pressure.


ECONOMICAL EXPOSED TO ONTARIO’S AUTO MARKET CYCLES

Canadian Underwriter - Greg Machbach (2018-07-10)

Exposure to Ontario’s regulated auto market is one factor leading to the “unsatisfactory” financial performance at Economical Insurance, CEO Rowan Saunders suggested to mutual policyholders attending the company’s annual general meeting, held Monday at the Bingemans Centre in Kitchener, Ont.


BANK OF CANADA MAY RAISE RATES THIS WEEK. (OH, BUT MAYBE IT SHOULDN’T)

G&M - Michael Babad (2018-07-09)

Key will be whether the Trump administration follows through with its threat to punish auto imports, which would hit Canada, and Ontario in particular, hard, possibly driving the country into a recession. Thus, the Bank of Canada could find itself in the position of having to cut rates down the road.


CMHC SHIFTS GEARS AMID FALLING DEMAND FOR INSURED MORTGAGES

G&M - Janet McFarland (2018-07-09)

The federal government’s mortgage insurer is reorganizing to adapt to falling demand for its core insurance products because of tighter federal mortgage rules.


PAYPAL TO SPEND $3-BILLION A YEAR ON M&A, CEO TELLS GERMAN PAPER

G&M - Reuters (2018-07-09)

“We have a healthy balance sheet and we are ready to put it to work to buy more companies,” President and CEO Dan Schulman told Germany’s Handelsblatt business daily in an interview.


GEN X, Y AND Z PARENTS: DON’T MAKE THIS BOOMER MONEY MISTAKE WITH YOUR KIDS

G&M - Rob Carrick (2018-07-09)

This needs to be said following the recent release of some research by Royal Bank of Canada on the cost of a postsecondary education. Some quick highlights: University tuition cost increases have outpaced inflation since 1982, and it now takes 505 hours of work at today’s average minimum wage to pay the average university tuition, compared with 293 hours of minimum wage work back in 1990. Half of new undergraduates finish their schooling with some level of student debt, and more than 20 per cent of grads with a bachelor degree start out with $25,000 or more in debt.


WHY POLOZ SHOULD PULL THE TRIGGER ON ANOTHER RATE HIKE

FP - Kevin Carmicael (2018-07-09)

“Life goes on and decisions must be made in the meantime,” Carolyn Wilkins, the senior deputy governor, said near the end of a speech in Winnipeg on June 12, 2017.


MFDA PERMANENTLY BANS TWO ADVISORS AND IMPOSES HEAVY FINES

Insurance Journal - IIJ (2018-07-09)

The Mutual Fund Dealers Association of Canada (MFDA) announced on July 5 that it has approved a settlement agreement in the matter of International Capital Management Inc.(ICM), John Paul Sanchez (John Sanchez) and Javier Andreas Sanchez (Javier Sanchez).


LIFE SETTLEMENT COMPANIES SEEK LEGISLATIVE VALIDATION

Insurance Journal - Kate McCaffrey (2018-07-09)

When aging clients find themselves holding an in-force, life insurance policy that they no longer need or can afford, they may believe that letting the policy lapse is the only course of action available to them.


IS THIS THE IDEAL MODERN-DAY INSURANCE MODEL?

Insurance Business - Bethan Moorcraft (2018-07-09)

In the heart of London’s historic insurance district and nestled in the shade of the iconic Lloyd’s building lies the office of CFC Underwriting – a bright and busy space home to more than 200 staff selling commercial insurance products to thousands of businesses in over 75 countries.


CLEAR POLICY EXCLUSION WINS THE DAY IN CLASS ACTION AGAINST CREDIT UNION

Canadian Underwriter - Greg Machbach (2018-07-09)

A class action lawsuit against Surrey, B.C.-based Coast Capital was certified in 2016. The representative plaintiff, Eric Finkel, took issue with fees charged when he used a bank machine in Asia to withdraw money from his Coast Capital chequing account. Finkel alleged a “Forex” surcharge that he had to pay was a deceptive practice on the part of Coast Capital. The allegations have not been proven in court.


WHAT’S DRIVING BANK STOCKS?

WSJ - Simon Constable (2018-07-09)

Bank stocks in recent years have appreciated along with a rise in long-term interest rates, outperforming the broader market over much of that time. Can investors count on this trend continuing, as long as the 10-year yield is rising?


CITIGROUP TAPS UBS BANKERS TO BOLSTER OPERATIONS IN FRANCE

WSJ - Ben Dummett (2018-07-09)

Citigroup Inc. moved to bolster its investment-banking operations in France, adding two senior bankers from UBS Group AG as it continues to tap its Switzerland-based rival for talent.


THE FED IS USUALLY OFF-LIMITS TO THE PRESIDENT. IS TRUMP CHANGING THAT?

NY Times - Peter Eavis (2018-07-09)

Last month, Fed policymakers signaled that they may make four interest rate increases this year, up from the three they previously expected. That means the Fed could raise rates two more times this year, and three next, according to the policymakers’ indications. Mr. Kudlow’s remarks could be construed as a signal that the White House does not want those increases to come quickly.


CITIGROUP, WITH LIMITED OPTIONS, HOPES TO LURE DEPOSITS DIGITALLY

Reuters - David Henry (2018-07-09)

While big rivals grew deposits dramatically after the 2007-2009 financial crisis from their broad networks of branches, Citigroup backed out of all but six U.S. cities and closed one-third of its branches. 


News feed

MONEYSUPERMARKET SETS UP FINTECH JV TO DIGITISE THE MORTGAGE MARKET

Finextra - Finextra (2018-07-20)

Moneysupermarket already attracts up to 16 million visitors to its mortgage website each year - representing around 25% of mortgage search traffic. Traditionally users find the best loan to suit their needs and complete the deal offsite with a third party mortgage broker. Podium's aim is to act as an onsite mortgage broker, digitising the application process and doing away with the paper trail.


BDC TO SPIN OUT TWO TECH VC FUNDS

G&M - Sean Silcoff (2018-07-19)

Two Business Development Bank of Canada venture capitalists are setting out with their own independent fund backed by tens of millions of dollars from U.S. fund giant Fidelity Investments, the first step in a significant shift by the federal agency in how it finances Canada’s growing technology sector.


GOOGLE SAID TO BE FINED RECORD $5-BILLION BY EU OVER ANDROID

G&M - AOIFE WHITE AND NIKOS CHRYSOLORAS (2018-07-18)

Google will be fined around 4.3 billion euros (US$5-billion) by the European Union over Android apps on Wednesday, setting a new record for antitrust penalties, according to a person familiar with the EU decision.


HELLO WORLD CANADA: THE RISE OF AI

Bloomberg - Bloomberg Video (2018-07-17)

Bloomberg Businessweek presents an exclusive premiere of the latest episode of "Hello World," the tech-travel show hosted by journalist and best-selling author Ashlee Vance and watched by millions of people around the globe. There's an AI revolution sweeping across the world. Yet few people know the real story about where this technology came from and why it suddenly took off. In this ground-breaking episode of "Hello World," the story of AI's rise is told in detail for the first time, as journalist Ashlee Vance heads to the unexpected birthplace of the technology, Canada. (Source: Bloomberg)


WHY ARE SOME INSURERS RELUCTANT TO COVER MEDICAL CANNABIS?

https://www.insurancebusinessmag.com/ca/news/breaking-news/why-are-some-insurers-reluctant-to-cover-medical-cannabis-106127.aspx - Lyle Adriano (2018-07-17)

With recreational cannabis set to be legalized later this year, some group benefits insurers still have issues about covering medical marijuana.


BLOCKCHAIN IN INSURANCE MARKET EXPECTED TO SURGE

Insurance Business - Ryan Smith (2018-07-17)

The global blockchain in insurance market is projected to grow from 2018’s US$64.5 million to US$1.393.8 million by 2023, a compound annual growth rate of 84.9%, according to a new study from ReportLinker.


CRYPTOCURRENCIES GO MAINSTREAM: CFA INSTITUTE ADDS BLOCKCHAIN COURSES TO ITS CURRICULUM

G&M - Clare O'Hara (2018-07-16)

The burgeoning asset class of cryptocurrencies has been given a boost in credibility thanks to the CFA Institute expanding its global curriculum to include courses in blockchain and virtual currencies.


HOW BLOCKCHAIN WILL HELP BROKERS BYPASS TRADITIONAL INSURERS

Canadian Underwriter - David Gambrill (2018-07-13)

Black will price the risk of specific syndicates and sell fractional ownership in such pools in the form of tokens representing the unit value of each syndicate’s expected financial return. The insurer says this process makes participation in insurance syndicates more efficient and transparent via time-stamped and traceable transaction records recorded on the blockchain.


RIPPLE BRINGS ON FACEBOOK’S KAHINA VAN DYKE TO INK PARTNERSHIPS

Pymnts - Pymnts (2018-07-12)

In a company announcement, Ripple said Van Dyke brings more than 20 years of experience in banking and technology, and will focus on driving new strategic partnerships for Ripple across the global financial services industry. Van Dyke was most recently at Facebook, where she led the global financial services team.


DEVELOPING COUNTRIES MAY NEED THEIR OWN STRATEGIES TO COPE WITH JOB-TAKING ROBOTS

NY Times - Jamie Condliffe (2018-07-11)

new study by the economists Lukas Schlogl and Andy Sumner of King’s College London, written for the Washington think tank Center for Global Development, suggests that there is still a need to consider how developing countries will cope with the rise of automation. Most strategies to help workers displaced by robots, some of which look promising, have so far been devised for developed nations and may not translate to the developing world, they argue.


INSURANCE SALES VIA THE INTERNET WILL BE PERMITTED IN QUEBEC STARTING JUNE 2019

Insurance Journal - Hubert Roy (2018-07-11)

The regulatory framework that will allow insurance sales via the Internet will officially come into effect on June 13, 2019. In the meantime, Quebec regulator – the Autorité des marchés financiers (AMF) – will have the task of establishing that framework.


FINEQIA PURCHASES STAKE IN BLOCKCHAIN-BASED INSURTECH

FP - Lyle Adriano (2018-07-10)

Based in Estonia, Black is looking to become a licensed insurer – enabling the underwriting of new insurance policies through insurance syndicates, similar to the Lloyd’s market. Through a blockchain platform, Black connects insurance brokers/MGAs/agents directly with capital, allowing them to essentially launch their own virtual insurance companies without the need for carriers.


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CHINA FIRMS WENT DEEP IN DEBT. HERE COME THE DEFAULTS

Chinese companies are facing a reality check after years of ramping up debt. The deleveraging campaign that President Xi Jinping began in 2016 to curb risks in the nation’s financial markets has cracked down on shadow financing and tightened rules on asset management. As a result, firms are having a tough time raising new funds to repay existing debt, leading to a record amount of bond defaults this year.


TRUMP TAKES A RARE PRESIDENTIAL SWIPE AT THE FED

President Trump criticized the Federal Reserve on Thursday for raising interest rates, a rare rebuke by a sitting president that upends longstanding White House protocol to avoid commenting on monetary policy.


WHERE CANADIAN DRIVERS PAY THE MOST (AND LEAST) FOR AUTO INSURANCE

In B.C. last year, average annual auto premiums were $1,680. The second-costliest province for auto premiums was Ontario, at $1,445.



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