Chinese Firms Are Investing Abroad at Fastest Pace in Eight Years
China’s overseas investment is heading for an eight-year high as its dominant firms build more factories abroad, a shift that could soften criticism of Beijing’s export drive.
Apr 18, 2017
BNN's Daily Chase: Tory, Morneau, Sousa huddle on housing as Royal LePage issues action warning
By Andrew Bell
Our focus on BNN is once again a story that affects the national economy, the prospects for banking stocks and your wallet: Home prices.
As Ontario Finance Minister Charles Sousa, Toronto Mayor John Tory and federal Finance Minister Bill Morneau get set for their meeting today to discuss Toronto’s frenetic housing market, Royal LePage CEO Phil Soper is warning against “hasty” action.
“The hasty introduction of new real estate-related regulations or taxes in Ontario, in the absence of data and analysis to support these policy moves, could lead to a sharp price correction, impacting not only household wealth, but damaging the broader Canadian economy as well," he says.
Soper joined us at 8 a.m. ET this morning.
BNN ADVISOR
CROSS-CANADA PERSONAL FINANCE UPDATE
TAXING HOMES
The ministers and mayor are scheduled to talk to the media at 3:30 p.m. ET. One piece of speculation this morning is a Globe and Mail report that province “is considering a speculation tax on home purchases by non-residents.”
At 12:10 a.m. we will hear from a public finance specialist at Simon Fraser University who says it’s time to rethink a beloved financial break, the ability to pocket gains from the sale of a principal residence tax-free.
Professor Rhys Kesselman argues that it’s time to tighten up weak enforcement that has permitted evasion on “housing sales should be taxable even under current legislation.”
He says policy has been undermined by serial flippers, foreign students who use parental wealth to buy property and “astronaut families living in upscale homes in different countries.”
It’s interesting to see that public servant Evan Siddall, CEO of Canada Mortgage and Housing Corp. isn’t afraid to insert himself into the debate. Siddall tweeted: “Repeating myself: foreign investment isn't new and is increasing. But domestic housing speculation is a much bigger factor. Why focus blame?”
AMAYA HEARING
Other stories of note: Paige Ellis will cover an Ontario Securities Commission hearing this morning on whether to approve a settlement with John David Rothstein, one of the four individuals named last week in an insider trading/tipping case involving shares in Internet poker giant Amaya Inc (AYA.TO).
Money manager Ben Cheng, former president of Aston Hill Financial, is among those facing accusations in the case.
FREE REAL TIME TSX STOCK QUOTES
Now, only at BNN.ca. Don’t delay! Watch Canadian stocks trade live here.
CANADIAN SOLAR
The solar-power equipment industry has been plagued by industry oversupply but shares in Canadian Solar (CSIQ.O) jumped six per cent yesterday after an analyst famed for his bearish take on the sector said the Guelph, Ont. company has an important ace in the hole.
Axiom Capital’s Gordon Johnson started coverage of the stock with a buy rating. He says the company’s power plants under development are an important asset that investors are undervaluing.
ATLANTIC TIDES RISING
Finally, Toronto home prices have been driven higher in part by a booming regional economy. But at 2:30 p.m. ET, we’ll hear from an author who says Atlantic Canada’s aging population represents an economic cliff.
National Business Book Award contender Richard Saillant warns in A Tale of Two Countries that a demographic crunch means universal health care in the region is at risk of collapse.
CORRECTION
Yesterday’s newsletter slipped up in an item on the DBRS downgrade of mortgage lender Home Capital (HCG.TO). The new rating of BBB (low) still counts as investment-grade. DBRS says speculative (or “junk”) doesn’t start until you get to BB country.
Every morning Commodities host Andrew Bell writes a ‘chase note’ to BNN's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnn.ca/subscribe.
