money
DOLLAR BRITISH£
UP 0.02¢
$1.0234 US
CURRENCIES
Day over day statistic
Monday Friday
US DOLLAR
YEN
$0.9771
$0.01207
$0.9773
$0.01209
STUDS
Biggest % gains in stocks over $5
1 BRAMPTON BRICK
$5.84 +15.64
2 NORROCK
$5.97
REALTY
+9.54
3 NORBORD INC.
$13.27 +6.67
DUDS
Biggest % losses in stocks over $5
1 EXTRACT RESOURCES
$7.75 –5.37
2 BAUER$6.10
PERFORMANCE
–4.69
3 MINCO$5.38
SILVER
–3.58
GO FIGURE
Today’s big financial numbers
$28M
The purchase price for a
penthouse condominium
above the new Four Seasons
Hotel in Toronto, setting a
new record for Canadian
condos. The luxury suite was
bought by an international
buyer.
$86.5M
The amount taken at
North American box offices
this past weekend by The
Hangover Part II. It was the
biggest comedy movie debut
yet and also set a record for
an R-rated movie opening.
STUDY: India, China score better than us
Canada
ranks 14th
in retirement
planning
Canada lags both India and
China when it comes to retire-
ment planning, coming in at
14th out of 17 countries, accord-
ing to an HSBC study.
The survey found 65% of
Canadians reported not having
a financial plan for their future,
compared to 50% of their global
counterparts. The only countries
that scored lower than Canada
w e re F ra n c e, Me x i c o a n d
Argentina.
Planners enjoy clear financial
benefits later in life, the bank
said. Canadian planners have
saved nearly two-and-a-half
times (245%) more money in
their retirement funds compared
to non-planners.
Not having enough money
for the here-and-now is a major
barrier to retirement savings,
with 73% of non-planners citing
a lack of cash as the reason why
they’re not doing more in their
retirement.
In general, those who seek
financial advice report greater
levels of financial wealth than
those who don’t.
Overall, 41% of worldwide
respondents said they feel poorly
prepared for retirement and two-
thirds expressed concern they
will not be able to make ends
meet.
On the flip side, more young
NEGOTIATIONS: Fund deficit at $2.1 billion, Air Canada says
Unions want pension plans unchanged
VANCOUVER — Three unions
at Air Canada Inc. said Monday
the preservation of pension
funds ranks as one of the top pri-
orities in their negotiations.
In a statement, the Canadian
Au t o Wo r k e r s u n i o n , t h e
EURO S&P/TSX NASDAQ
DOWN 0.13¢ DOWN 0.06¢
$1.6094 CDN $1.3956 CDN
REPORT: Canadians to spend more than $46B on homes this year
Reno spending spree
SHARON SINGLETON
QMI Agency
Canadians plan to spend
more than $46 billion this year
to renovate their homes, con-
tinuing their property spending
spree even after the expiry of the
home renovation tax credit, a
new BMO survey found.
The figure is slightly higher
than the $45.3 billion spent last
year and $40.9 billion in 2009.
About two-thirds of homeown-
ers said they plan to renovate
over the next two years, the bank
said.
The study shows Canadians
are still willing to spend to
upgrade their property even
without tax incentives. The fed-
eral government introduced a
credit for home renos as part of
its package of stimulus measures
to drag the economy out of the
recession. It expired in January
2010.
“We have seen quite a strong
increase in reno activity in the
first quarter and that has con-
tributed to overall economic
growth,” said BMO Capital
Markets senior economist Sal
Guatieri.
“The resale market is quite
strong so people are fixing up
older homes and upgrading the
ones they are living in.”
The focus on existing proper-
ties also comes as new building
activity shows signs of slow-
ing. Housing starts are likely
to stabilize in 2011 at about
179,500 units, according to
Canada Mortgage and Housing
Corporation figures released
Monday. Actual housing starts
for 2010 totalled 189,930 units.
“I would describe home
DO YOU HAVE A FINANCIAL PLAN
FOR YOUR FUTURE?
Argentina
Mexico
France
Canada
U.S.
Poland
U.K.
Hong Kong
Brazil
Saudi Arabia
U.A.E.
Singapore
South Korea
Taiwan
India
China
Malaysia
0 20
Source: HSBC
workers and women are taking
retirement planning more seri-
ously, according to the survey.
Of women ages 30-39, 47%
responded they a financial plan
in place.
That’s compared to 38% of
women ages 50-59.
“Canadians should be more
aware of their long-term finan-
cial needs and implement a plan
to address these needs, even if
they are starting out with a lim-
ited amount of money. A small
investment now can provide real
International Association of
Machinists and Aerospace
Workers and the Canadian
Union of Public Employees
said they want workers’ defined
benefit pension plans to remain
unchanged.
DOW
UP 32.07 MARKET CLOSED MARKET CLOSED
13,829.70 2,796.86 12,441.60
Canadians plan on spending more than $46 billion on home renovations this year, a report by BMO says,
even though the home renovation tax credit has expired.
building as having normalized,”
Guatieri said. “That’s a good
thing because if the housing
market cools down we won’t
get stuck with a big overhang of
unsold houses.”
T h e B M O re p o r t f o u n d
respondents’ main motiva-
tion for upgrades was seeing a
friend or neighbour’s projects,
with one-quarter saying this was
Percent of people that
say they have a financial
plan in place
Global average
50
40 60 80 100%
QMI AGENCY
peace of mind and a positive
outlook on retirement later in
life,” said Margaret Willis, execu-
tive vice president, retail banking
and wealth management, HSBC
Bank Canada.
HSBC surveyed 17,849 finan-
cial trendsetters in Argentina,
Brazil, Canada, China, France,
Hong Kong, India, Malaysia,
Mexico, Poland, Saudi Arabia,
Singapore, South Korea, Taiwan,
U.A.E., U.K., and the U.S.
— QMI Agency
Air Canada said the deficit in
its pension fund stood at $2.1 bil-
lion at the start of 2011. Assuming
no changes to deficit levels, it
expects to pay $320 million.
— Reuters
NIKKEI GOLD OIL
DOWN 16.97 MARKET CLOSED
9,504.97 $1,536.30 US
the major factor in their deci-
sion. Twenty percent said TV
programs had stirred the urge
to make changes, while 16% got
their impetus from newspapers
or magazines.
Of those planning renova-
tions, 90% said it is to improve
their lifestyle, and 79% said it
is to improve the value of their
home.
REPORT: Governments need to remove investment barriers, think-tank says
Consumers could face
rising electricity costs
SHARON SINGLETON
QMI Agency
North American consumers
will face escalating electricity
costs unless governments take
action to reduce barriers to the
investment needed to upgrade
power generation infrastructure,
according to a new report from
the Fraser Institute.
Investment needed in U.S.,
Canadian and Mexican energy
infrastructure will total about
$858 billion US between 2010
and 2020, or about $86 billion a
year, the think-tank’s report says.
The actual cost will depend on
the energy mix chosen, with
renewable technologies likely to
cost more.
According to a recent National
Energy Board forecast, Canadian
electric generation capacity
will increase by 15% from 2010
to 2020, raising capacity from
131,418 megawatts to 152,903
megawatts. Generation capacity
in North America is projected to
increase by 8% over the period.
Unless governments take
action to eliminate barriers to
investment, consumers will
end up carrying the burden, the
Fraser Institute says.
“That is because power rates
will have to be adjusted, by
regulators and market forces,
to ration limited electricity sup-
plies, or to cover the higher
investment requirements,” the
MANUFACTURING: Automaker says lack of parts temporary
Toyota plant put workers on 3-day week
LONDON, Ont. — Toyota
workers will return to the pro-
duction line in Woodstock, Ont.,
this week — but not for long.
T h e a u t o m a k e r, w h i c h
also assembles vehicles in
Cambridge, Ont., shut down last
AECO PRIME
MARKET CLOSED UP $0.28
$100.59 US $3.86
Supplied photo
The Leger Marketing survey
was completed online from
March 10-21 with a sample of
1,508 Canadian homeowners
between the ages of 25 and 45.
A probability sample of the
same size would yield a margin
of error of 2.5 percentage points,
19 times out of 20.
sharon.singleton@canoe.ca
report says.
The Fraser Institute says fail-
ure to spend enough on improv-
ing facilities and the resulting
higher costs will dampen indus-
trial production. The report does
not estimate how much house-
hold bills may rise.
The institute says govern-
ments in Canada, the U.S. and
Mexico need to introduce poli-
cies that reduce risks to investors
from changes to energy policy.
It points to the example of a
ECONOMY: Manufacturing, mining, oil lead way
GDP grows 3.9% in quarter
OTTAWA — Canada’s econ-
omy gathered speed in the
first quarter, expanding at its
fastest pace in a year, as busi-
nesses ramped up investment
and rebuilt inventories, though
economists warned the growth
spurt would not last long.
Led by manufacturing, mining
and oil and gas extraction, GDP
grew at an annualized rate of
3.9% in the quarter.
That was the strongest perfor-
mance since the first quarter of
2010, when the economy grew
5.6%, and followed 3.1% fourth-
quarter growth. The economy
of the U.S. grew an annualized
1.8% in the first quarter.
week, hurt by a parts shortage
caused by the ongoing impact of
the earthquake and tsunami that
struck Japan on March 11.
That shortage will linger,
meaning workers will return to
the job for only three days a week
UNCHANGED
3%
SMALL BUSINESSES
Tax breaks
not worth
it: Report
Tax breaks aren’t always the
best way to help small busi-
nesses grow. In fact they can
stifle growth, argue economists
Jack Mintz and Duanjie Chen in
a new report.
Small business tax conces-
sions aren’t worth it and can’t
be sustained, according to the
paper, released Monday by the
University of Alberta’s School of
Public Policy.
Some provinces have scrapped
corporate taxes on small busi-
nesses or reduced them without
evidence it boosts growth and
jobs. The only study available
has shown that while many small
businesses are created as a result
of the cuts, few grow.
“The incentives undermine
the neutrality of the overall tax
system and the goals of simplifi-
cation, economic efficiency and
fairness,” Mintz and Chen said.
“Ironically, the current system
encourages companies to break
up into smaller, less efficient
units” to avoid paying more.
Mintz and Chen suggest
the current small-business tax
deduction and lifetime capital
gains exemption be replaced
because they hinder growth.
They recommend the federal
and provincial governments
encourage investment in depre-
ciable assets, create a capital
gains incentive for small busi-
nesses going public and reduce
the lock-in effect of capital gains
taxes.
— Stefania Moretti, QMI Agency
gas-fired generation plant in
Oakville, Ont. TransCanada
received approval to build the
plant, only to have the govern-
ment nix plans last year.
Governments also need to take
the uncertainty out of environ-
mental policy regulations to allow
potential investors time to adjust
their business plans and estab-
lish consultative measures and
processes, the think-tank says.
sharon.singleton@canoe.ca
In March, the Canadian
economy expanded 0.3%, as
expected, following a 0.1% con-
traction in February.
In a separate report, Statscan
said strong oil exports to the U.S.
helped shrink Canada’s first-
quarter current account deficit
to $8.9 billion, from $10.3 billion.
Also on Monday, Canada
Mortgage and Housing Corp.,
the federal housing agency,
raised its forecast for 2011 hous-
ing starts to 179,500 units from
177,600, citing an improving
economy and still-low interest
rates.
— Reuters
until the end of July “and after
that, we’re not sure,” said Greig
Mordue, Toyota spokesman.
“We do not have the parts, but
this is temporary.”
— Norman De Bono, QMI Agency