Canadian economy didn't grow at all in fourth quarter - CTV News

OTTAWA -

The Canadian economy was treading water at the end of 2022, the latest GDP report shows, but beneath the disappointing data is resilient consumer spending keeping the economy afloat.

On Tuesday, Statistics Canada said real gross domestic product was unchanged in the fourth quarter of 2022 after five consecutive quarters of growth.

The report, which said the economy contracted by 0.1 per cent in December, showed a much grimmer economy than forecasters were expecting as higher interest rates took a more noticeable toll on the economy.

Statistics Canada's preliminary estimate had predicted 1.6 per cent annualized growth for the quarter.

But Statistics Canada expects the economy bounced back in January, posting 0.3 per cent growth in real GDP.

The fourth quarter also included some silver linings for Canadians. After declining by 0.1 per cent in the third quarter, household spending bounced back by 0.5 per cent in the fourth quarter.

TD's director of economics James Orlando said the consumer, which is "the real engine of the Canadian economy," is still faring relatively well.

"Overall, the headline print looks really bad. But when you pull back the lens ... Some of the underlying fundamentals are still coming in quite good for the Canadian economy," Orlando said.

The fourth quarter slowdown was largely driven by businesses accumulating less inventory than in the previous two quarters.

Orlando said inventories reached record levels earlier in the year as a result of easing supply chains. But that accumulation wasn't expected to last.

In addition to lower inventories, real business investment declined for a third consecutive quarter as higher interest rates weakened housing investment in 2022.

Although growth stalled for the quarter, Canadians saw their disposable incomes rise faster than their nominal spending, allowing them to save more money.

The federal agency said the household savings rate was six per cent in the fourth quarter, up from five per cent the previous quarter.

The report partly attributes this improvement in household finances to government benefits, including the one-time top-up to the GST tax credit and a 10 per cent increase in Old Age Security payments for seniors aged 75 years and over.

The Liberal government introduced these measures targeted at lower-income Canadians to help them cope with higher inflation.

"All of this together means more money in the pockets of Canadians and ... that Canadians are going to spend more," Orlando said.

Looking ahead, Orlando said recent economic data has been coming in "much better than expected."

The latest labour force survey showed the economy added 150,000 jobs last month, suggesting there's still steam on the hiring front. Retail sales were also up in January.

These figures support forecasts for a rebound for economic growth in January.

But most economists expect the Canadian economy won't be able to avoid a recession in the first half of the year as higher interest rates dampen spending.

Since March, the Bank of Canada has raised its key interest rates from near-zero to 4.5 per cent, the highest it's been since 2007.

The central bank announced in January it would take a conditional pause on hiking rates to assess how the economy is responding to higher interest rates.

If the economy continued to run hot or inflation proved sticky, the Bank of Canada made it clear it would be ready to jump back in and raise rates further.

But Orlando said it's likely content with its decision to sit on the sidelines, given the softer GDP report.

The Bank of Canada is set to make its next interest rate decision on March 8.

The central bank contends a slowdown is necessary to bring inflation back down to its two per cent target.

After peaking at 8.1 per cent in the summer, Canada's annual inflation rate slowed to 5.9 per cent in January.

The Bank of Canada is forecasting inflation will slow to three per cent by mid-2023 and fall back to the two per cent target next year.

It's hoping inflation can come back down to target without a sharp economic downturn. At the same time, the central bank has stressed that returning to normal price growth is its primary focus, one that could come at the expense of a more severe economic contraction.

This report by The Canadian Press was first published Feb. 28, 2023.

Adblock test (Why?)

https://news.google.com/rss/articles/CBMigQFodHRwczovL3d3dy5jdHZuZXdzLmNhL2J1c2luZXNzL2NhbmFkaWFuLWVjb25vbXktcG9zdGVkLW5vLWdyb3d0aC1pbi1mb3VydGgtcXVhcnRlci1idXQtY29uc3VtZXItc3BlbmRpbmctaXMtaG9sZGluZy1vbi0xLjYyOTIyNTDSAQA?oc=5

2023-02-28 18:21:51Z
1806800530

Gold prices holding near session highs as U.S. consumer confidence falls to 102.9 - Kitco NEWS

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - The gold market is holding near session highs as bargain hunting and dismal economic data help support prices after they fell to a fresh nine-week low overnight.

American consumer confidence index fell to 102.9 in February, down from January’s revised reading of 106, the U.S. Conference Board reported Tuesday. According to consensus estimates, economists were looking for a reading around 108.50

The gold market was benefiting from some technical buying momentum but the weaker-than-expected data is helping to solidify the bullish momentum. April gold futures last traded at $1,831.70 an ounce, up 0.37% on the day.

The report said that the decline in consumer confidence was due to a further decline in expected future economic conditions. The report said that the Present Situation Index increased to 512.8, up from January’s reading of 151.1. However, the Expectations Index dropped to 69.7, down from the previous reading at 76.

“Notably, the Expectations Index has now fallen well below 80—the level which often signals a recession within the next year. It has been below this level for 11 of the last 12 months,” the report said.

Although inflation pressures have dropped from the 40-year highs seen last summer, the report noted that persistently elevated prices are taking their toll on consumers.

“While 12-month inflation expectations improved—falling to 6.3 percent from 6.7 percent last month—consumers may be showing early signs of pulling back spending in the face of high prices and rising interest rates,” said Ataman Ozyildirim, Senior Director, Economics at The Conference Board, in the report. “Fewer consumers are planning to purchase homes or autos and they also appear to be scaling back plans to buy major appliances. Vacation intentions also declined in February.”

Adblock test (Why?)

https://news.google.com/rss/articles/CBMie2h0dHBzOi8vd3d3LmtpdGNvLmNvbS9uZXdzLzIwMjMtMDItMjgvR29sZC1wcmljZXMtaG9sZGluZy1uZWFyLXNlc3Npb24taGlnaHMtYXMtVS1TLWNvbnN1bWVyLWNvbmZpZGVuY2UtZmFsbHMtdG8tMTAyLTkuaHRtbNIBAA?oc=5

2023-02-28 15:08:00Z
1798221314

Statistics Canada study on Black-owned businesses suggests systemic challenges hold them back - CBC News

The number of Black-owned enterprises in Canada is growing, but still represent a tiny fraction of the country's business landscape, and they tend to be smaller and less profitable than other businesses.

Those are some of the main takeaways from a recent Statistics Canada study that looked at the state of entrepreneurship among Black Canadians between 2001 and 2018. 

The study amalgamated a series of different reports — including census data for 2001, 2006 and 2016; the 2011 National Household Survey and the 2018 Employer-Employee Dynamics Database — and analyzed them to see how the status for Black entrepreneurs has changed over the better part of two decades.

It found there were approximately 66,880 Black-owned businesses in Canada as of 2018; about 2.1 per cent of the more than 3.1 million businesses in total across the country. 

According to the latest census data, 4.3 per cent of Canadians, or more than 1.5 million people, identify as Black. 

Almost three-quarters of Black-owned businesses are owned by men, while the percentage of self-employment grew from 1.8 at the start of the study period to 3.5 per cent by 2018. That's greater than the growth in self-employment among Black women, which went from 1.3 per cent to 2.2. 

While Black-owned businesses are growing, the data suggests they are not meeting their full potential as they tend to be smaller and less profitable than other businesses.

More than 95 per cent of unincorporated Canadian businesses owned by Black people have fewer than one employee, and even among those that are large and complex enough to want to incorporate, more than 91 per cent have fewer than five.

"Black-owned businesses are almost half as likely as White-owned businesses to have five or more employees," the study found.

They're less lucrative, too. Among male business owners, Black men earned an average of $56,100. That's $9,500 less than their counterparts from other racialized groups and $43,300 less than what average white male business owners earned in 2018. Black women business owners, meanwhile, earn the same as other racialized groups, but $16,000 less than white women.

Black-owned businesses tend to be less profitable, with profit margins averaging 8.5 per cent, versus 14.9 at white-owned firms. The study says that white-owned businesses tend to "have a better ability to profit from their activities and have more room to maneuver to cope with rising costs or competition," but stops well short of suggesting any systemic disadvantages are solely to blame for that discrepancy. 

Funding challenges

But Carlton-James Osakwe, a business professor at Mount Royal University, says the numbers clearly suggest there are systemic challenges holding Black-owned business from reaching their full potential. 

"Black-owned enterprises ... have a harder time getting bank loans ... and even at what interest rates they might get," he told CBC News. "That needs to be explored."

Carlton-James Osakwe says data from Statistics Canada shows Black-owned businesses face funding challenges that other entrepreneurs don't. (Anis Heydari/CBC)

In 2021, the federal government created the Black Entrepreneurship Loan Fund, a $265 million commitment to help entrepreneurs with loans of up to $250,000. Osakwe says programs like that and others are a step in the right direction, but he still hears from Black-owned businesses all the time who say their biggest challenge is funding.

Outside of conventional bank loans or government grants, a major funding source for small businesses is often what he calls "dealmakers" — entrepreneurs who grew businesses and now spend some of that capital to nurture the next generation.

"But these dealmakers tend to be Caucasians or white people in general, and so their networks will revolve around that," he said. "It's fair to say that the dealmaker network is something that Black people don't have sufficient access to."

Some solutions

Lola Adeyemi is one success story who managed to overcome those hurdles and build her dream business, but it wasn't easy. After immigrating to Canada in 2005, she worked a variety of corporate jobs while longing to set out on her own in the food business. In 2018, she started It's Souper, a soup company built on the flavours of her native Nigeria. 

She launched her business from her own savings, but to scale up to the level where she can produce enough to get shelf space at major grocery chains, she needed money to survive. And the more she grew, the bigger those funding challenges got.

"The demands are pretty daunting and it starts immediately," she said of the need for funding.

Two years after launching her business, she applied for and was awarded a $72,000 grant from law firm Cassels Brock, money she used to pivot to the new reality of selling in the pandemic: online. She later appeared on CBC's Dragon's Den seeking financing to help her manage her growth.

WATCH | It's Souper appears on Dragon's Den:

It's Souper

1 year ago

Duration 7:50

Lola Adeyemi from Toronto, ON, pitches her line of Nigerian inspired soups and sauces.

While she is grateful for the mentorship, funding and help she's received along the way, Adeyemi says a major stumbling block for Black entrepreneurs is that lack of a community above them — to help them rise up. 

"It's a huge problem because you're not seeing others who have done it, so you don't think it's doable," she said. "What I tell a lot of people in the Black community is to expand beyond the Black community because we're not yet at the point where we are in places of influence enough to be able to have an impact."

Entrepreneur Lola Adeyemi is shown in front of some of her It's Souper products. She says she encourages all Black owned businesses to expand their networks in order to get ahead. (Greg Bruce/CBC)

It was nerve-wracking for Sydonne Warren to make a move like that, but it paid off for her small but growing business. An artist and muralist in Calgary, it was a chance encounter with an independent brewery in the city that led to a relationship that's been helping both sides ever since. In 2020, the owners of Inner City Brewing contacted her about purchasing one of her designs to feature it on beer cans. 

Next, they commissioned her to paint a mural in their space. So when she needed a space to host her "paint and sip" nights — where attendees can learn to paint, while sampling a few drinks — the bar was a natural fit.

Her experience is similar to many Black business owners, in that she didn't start out with an obvious career path in mind, but she didn't let that stop her.

"I didn't know other business owners growing up so I've had to kind of do trial and error a lot to teach myself," she said. "I think if we were probably more educated on how to run business and how to have a successful business, then I think we'd see the gap start to close."

---

For more stories about the experiences of Black Canadians — from anti-Black racism to success stories within the Black community — check out Being Black in Canada, a CBC project Black Canadians can be proud of. You can read more stories here.

---

Adblock test (Why?)

https://news.google.com/rss/articles/CBMiUmh0dHBzOi8vd3d3LmNiYy5jYS9uZXdzL2J1c2luZXNzL3N0YXRpc3RpY3MtY2FuYWRhLWJsYWNrLWJ1c2luZXNzLW93bmVycy0xLjY3NTkyNjfSASBodHRwczovL3d3dy5jYmMuY2EvYW1wLzEuNjc1OTI2Nw?oc=5

2023-02-27 19:08:26Z
1798568414

Gold largely ignores mixed U.S. manufacturing data - Kitco NEWS

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Mixed U.S. manufacturing data is not able to provide any significant bullish momentum for the gold market as the precious metal tries to attract new attention after falling to a nine-week low overnight.

Monday, the Commerce Department said that U.S. durable goods orders fell 4.5% last month, down from January's increase of 5.6%. The data was worse than expected; consensus expectations compiled by various news organizations called for durables to fall 3.7%.

However, stripping out the volatile transportation sector, core durable goods orders increased 0.7%, up from the previous decline of 0.2%. The data beat expectations as economists looked for a 0.1% increase.

At the same time, capital goods orders non-defense, excluding aircraft orders, increased 0.8%, beating expectations for a 0.1% increase.

According to some economists, the better-than-expected core data could help relieve fears that the U.S. is headed toward a recession.

"The line on capital goods orders non-defense ex-air is the one that matters and it's a good forward-looking sign for manufacturing," said Adam Button, head of currency strategy at Forexlive.com.

The gold market is not seeing much reaction to the latest economic data as the market sees some technical buying and bargain hunting after prices dropped to a nine-week low Sunday night. April gold futures last traded at $1,820 an ounce, up 0.20% on the day.

Adblock test (Why?)

https://news.google.com/rss/articles/CBMiXGh0dHBzOi8vd3d3LmtpdGNvLmNvbS9uZXdzLzIwMjMtMDItMjcvR29sZC1sYXJnZWx5LWlnbm9yZXMtbWl4ZWQtVS1TLW1hbnVmYWN0dXJpbmctZGF0YS5odG1s0gEA?oc=5

2023-02-27 13:46:00Z
1798221314

Why McDonald's Is Thriving In China - CNBC

Adblock test (Why?)

https://news.google.com/rss/articles/CCAiC2RENWFjLWUyU084mAEB?oc=5

2023-02-26 17:00:18Z
1806681769

The price of self-representation in B.C. courts: two stress leaves and sale of family home - Vancouver Sun

Two stress leaves and sale of the family home was the toll for a Comox woman

Published Feb 25, 2023  •  Last updated 17 hours ago  •  7 minute read

6 Comments

Jennifer Muller was a self-represented litigant, who initially hired a lawyer but saw costs for her custody and child support case escalate to about $50,000 in the first four months, making it untenable to continue with a lawyer. jpg

Article content

When she was forced to handle a high-conflict and lengthy family-law court case, often without the help of a lawyer, Allison Clark suffered two stress leaves at work and decided she had to sell the family home.

Advertisement 2

REGISTER TO UNLOCK MORE ARTICLES

Create an account or sign in to continue with your reading experience.

• Access articles from across Canada with one account
• Share your thoughts and join the conversation in the comments
• Enjoy additional articles per month
• Get email updates from your favourite authors

Article content

A middle-income earner who didn’t qualify for legal aid, the 51-year-old mother of two initially hired a lawyer, but soon ran out of money and became a self-represented litigant.

Article content

At one point in her six-year ordeal, she found it necessary to put her home on the market.

“It was an extremely difficult decision as this was our family home and our kids had a big, beautiful yard to play in and we had many memories there,” said the Comox woman.

Courtroom 60 at the BC Court of Appeal in Vancouver, BC Friday, February 24, 2023. (Photo by Jason Payne/ PNG) Photo by Jason Payne /PNG

Her story is all too familiar for thousands of people in B.C. who encounter hefty legal fees and embark on the daunting challenge of going it alone in what often turns out to be a years-long, stressful legal battle.

Many self-represented litigants end up taking out second mortgages or lose their homes. Or they cash in RRSPs, putting themselves in a precarious financial position.

Advertisement 3

Article content

The percentage of people who go without lawyers in their court cases, especially family law cases, continues to rise every year in Canada, according to Jennifer Leitch, director of the Ontario-based National Self-Represented Litigants Project, which researches the issue.

While the rate of self-representation for all cases dipped slightly in the B.C. provincial court last year, the number of self-represented court appearances increased by seven per cent.

The B.C. Court of Appeal, which also collects data on self-representation, experienced a slight increase in self-representation in 2021, according to its annual report last year.

Chief Justice Robert Bauman of the B.C. Court of Appeal, who chairs Access to Justice B.C., a group dedicated to addressing such access to justice issues as self-represented litigants, said he was “absolutely” aware of the economic effect on people without lawyers.

Advertisement 4

Article content

“I’ve often said I don’t think most Canadians, including myself, could afford any type of litigation going beyond a week,” said Bauman, the province’s top judge. “It’s prohibitively expensive with the current model.”

Robert Bauman, chief justice of the B.C. Court of Appeal chairs Access to Justice B.C., a group dedicated to addressing access to justice issues as self-represented litigants. PNG

Research by the National Self-Represented Litigants Project has found that most people self-represent because they can’t afford to pay for legal services and do not qualify for legal aid. Many begin their cases with lawyers but at some point become unable to spend any more on legal expenses.

To get a legal aid lawyer you must undergo an assessment that looks at a number of factors including the nature of your legal problems, your income and your household size.

The current financial threshold for legal aid for a single person for standard cases is $27,840 in annual net income with a two-person household threshold at $39,360.

Advertisement 5

Article content

Clark’s ordeal began in 2015 after she’d separated from her husband and hired a lawyer on a retainer to handle her family legal issues that eventually entailed orders for parenting, interim support and child support arrears.

At the time she was earning about $62,000 a year and did not qualify for legal aid as the threshold then for legal aid for her was about $26,000, she said.

Her legal bills were about $25,000 for the first year and she ran out of money and had to begin representing herself, navigating her way through the complex rules and procedures of the B.C. Supreme Court.

Trying to hold down a full-time job, raise her kids and deal with her court case proved to be too much at times, and she twice had to take stress leaves from work.

Advertisement 6

Article content

“It was definitely the most stressful thing I’ve ever gone through in terms of the energy,” she said of her experience.

The decision to sell her home came in the winter of 2020 when she was off work on the second of two stress leaves and her finances were stretched.

As hard as it was, in the end it was the best decision to sell the home because it bought her time to recover her health, return to work and simplify the lives of herself and her kids, she said.

She hired a lawyer again, but eventually ran out of money for a second time and had to once more be self-represented, eventually resolving her legal issues in 2021.

Clark said she wanted to make it clear that while she was unrepresented, she was very fortunate to have the continued support of her lawyer helping her with some of the legal and procedural roadblocks as they came up.

Advertisement 7

Article content

Jennifer Muller, another self-represented litigant, also initially had a lawyer but costs for her custody and child support case escalated to about $50,000 in the first four months, making it untenable to continue with a lawyer.

“It was so distressing, the experience,” said the North Vancouver woman, who has had a seat on the Access to Justice B.C. committee since its inception and has long advocated changes in the system to improve things for self-represented litigants.

Jennifer Muller was a self-represented litigant, who initially hired a lawyer but saw costs for her custody and child support case escalate to about $50,000 in the first four months, making it untenable to continue with a lawyer.

Muller, who has been employed as a district elementary counsellor for 28 years, said that after she was self-represented, court orders were not followed and things slid in her case for about 10 years.

“But I ended up having to go back 10 years later once again as a self-represented litigant in 2019 and 2020.”

Advertisement 8

Article content

She said she was successful in her first few hearings after resuming her case but the emotional toll was so great that she ended up going to her bank and taking out a “massive” loan and got excellent legal counsel and was ultimately successful.

“But to this day, I remain indebted and I continue to pay off those loans,” she added.

Muller says that many people faced with the intimidating prospect of going to court without a lawyer simply opt out of the process altogether. She believes the system was never set up to manage family matters.

“Justice is a pillar of a civilized country and society and it is very concerning for us to have a system that’s not accessible to everyone.”

Courtroom 60 at the BC Court of Appeal in Vancouver, BC Friday, February 24, 2023. (Photo by Jason Payne/ PNG) Photo by Jason Payne /PNG

In recent years, efforts have been made to make things easier for people trying to navigate the justice system alone, including the unbundling of legal services.

Advertisement 9

Article content

Often a person seeking legal help will hire a lawyer on a retainer, which can run into the thousands of dollars.

Unbundling allows a person to hire a lawyer at an hourly rate. It’s a service that some, but not all lawyers, offer.

There have also been proposals for paralegals to take on legal work normally done by lawyers and at rates that are not as expensive as what lawyers charge.

And some lawyers offer to work pro bono, or free of charge.

The question for some is whether those measures are providing meaningful reform.

Leitch said that any changes need to be made consistent across jurisdictions.

She said there still needs to a rethinking of fundamental justice question.

“One judge I heard use the term root and branch reform of the civil justice system in order to have it better respond, because right now it’s not responding for a lot of people.”

Advertisement 10

Article content

Andrew Pilliar, an assistant professor of the faculty of law at Thompson Rivers University who works with the western branch of the National Self-Represented Litigants Project, said there needs to be more research on the problem although some courts do a reasonably good job.

“The legal system has chronically not done a great job of studying and capturing metrics of the nature of access to justice problems.”

Bauman noted that his court is working with the Access Pro Bono Society of B.C. to offer self-represented litigants some free legal assistance, saying it’s a tremendous service to people.

“But you’ve got to ask yourself, I mean, are these Band-Aids on a system that itself needs to change?”

He said providing more money to underfunded legal aid is necessary but it’s not the only thing that’s needed.

Advertisement 11

Article content

“The larger problem is how do we change the system, the way the services are delivered, the way the problems are resolved. How do we change it so that it’s navigable by ordinary people?”

He said he believes things are getting better but recognizes that it’s slow but he added that tangible progress is being made.

kfraser@postmedia.com

1. 

   Top judge who upheld Canada's polygamy law announces he will be retiring

2. 

   B.C. Appeal Court 'sorely lacking' in people of colour, says top judge

3. 

   Law Society of B.C. proposes non-lawyers be allowed to do some legal work

Courtroom 60 at the BC Court of Appeal in Vancouver, BC Friday, February 24, 2023.(Photo by Jason Payne/ PNG) Photo by Jason Payne /PNG

---

Support our journalism: Our in-depth journalism is possible thanks to the support of our subscribers. For just $3.50 per week, you can get unlimited, ad-lite access to The Vancouver Sun, The Province, National Post and 13 other Canadian news sites. Support us by subscribing today: The Vancouver Sun | The Province.

Share this article in your social network

Advertisement 1

Adblock test (Why?)

https://news.google.com/rss/articles/CBMigQFodHRwczovL3ZhbmNvdXZlcnN1bi5jb20vbmV3cy9sb2NhbC1uZXdzL3RoZS1wcmljZS1vZi1zZWxmLXJlcHJlc2VudGF0aW9uLWluLWItYy1jb3VydHMtdHdvLXN0cmVzcy1sZWF2ZXMtYW5kLXNhbGUtb2YtZmFtaWx5LWhvbWXSAQA?oc=5

2023-02-25 19:34:42Z
CBMigQFodHRwczovL3ZhbmNvdXZlcnN1bi5jb20vbmV3cy9sb2NhbC1uZXdzL3RoZS1wcmljZS1vZi1zZWxmLXJlcHJlc2VudGF0aW9uLWluLWItYy1jb3VydHMtdHdvLXN0cmVzcy1sZWF2ZXMtYW5kLXNhbGUtb2YtZmFtaWx5LWhvbWXSAQA

Warren Buffett's Berkshire posts record $30.8 billion annual operating profit - The Globe and Mail

Warren Buffett’s Berkshire Hathaway Inc on Saturday reported its highest-ever annual operating profit, even as foreign currency losses and lower gains from investments caused fourth-quarter profit to fall.

Buffett called 2022 a “good year” for Berkshire in his annual shareholder letter after the conglomerate’s dozens of businesses generated $30.8 billion of profit despite rising inflation and supply chain disruptions, including from the war in Ukraine.

Berkshire also bulked up its cash hoard, ending the year with $128.6 billion.

The Omaha, Nebraska-based conglomerate sold about $16.3 billion of stocks in the fourth quarter and found better value repurchasing its own shares, buying back $2.6 billion in the quarter and $7.9 billion for all of 2022.

Berkshire shareholders “trust us to treat their money as we do our own,” Buffett said in his letter. “And that is a promise we can make.”

Quarterly operating profit fell 8% to $6.71 billion, or $4,596 per Class A share, from $7.29 billion.

Results included about $1.2 billion of currency losses and more underwriting losses at the car insurer Geico, which has struggled more than some rivals with accident claims and properly pricing policies to reflect risk.

Profit also fell at the BNSF railroad, while Berkshire generated more profit from its energy businesses and more income from its insurance investments as interest rates rose.

Quarterly net income fell 54% to $18.16 billion, or $12,412 per Class A share, from $39.65 billion, or $26,690 per share, a year earlier.

For all of 2022, Berkshire lost $22.82 billion, largely because of losses in its $308.8 billion common stock portfolio.

Buffett considers net income a misleading performance measure because it includes gains and losses from stock holdings such as Apple Inc and Bank of America Corp, regardless of what Berkshire buys or sells.

A dearth of new investments helps explain how Berkshire boosted its cash stake despite having spent $11.5 billion in the fourth quarter to buy the insurance company Alleghany Corp.

That purchase helped Berkshire boost insurance “float,” which reflects premiums collected up front before claims are paid and help fund growth, 12% last year to $164.1 billion.

“We’re delighted to see the growth in float,” said Thomas Russo, a partner at Gardner Russo & Quinn who helps invest $8 billion, about 17% of which is in Berkshire stock. “Buffett often describes float as more important than cash.”

Berkshire also spent $8.2 billion on Jan. 31 to boost its stake in truck stop operator Pilot Travel Centers to 80% from 38.6%.

Berkshire’s share price rose 4% in 2022, far outpacing the Standard & Poor’s 500 which fell 18% including dividends, and reflecting Berkshire’s status as a defensive investment in rocky markets.

The shares have fallen 1.5% in 2023, while the index is up 3.4%.

Adblock test (Why?)

https://news.google.com/rss/articles/CBMijAFodHRwczovL3d3dy50aGVnbG9iZWFuZG1haWwuY29tL2J1c2luZXNzL2ludGVybmF0aW9uYWwtYnVzaW5lc3MvYXJ0aWNsZS13YXJyZW4tYnVmZmV0dHMtYmVya3NoaXJlLXBvc3RzLXJlY29yZC0zMDgtYmlsbGlvbi1hbm51YWwtb3BlcmF0aW5nL9IBAA?oc=5

2023-02-25 17:53:30Z
1795776458

Move over, quiet quitting. 'Rage applying' is the latest form of worker revenge - CBC.ca

Cost of Living4:51#rageapplying is the new #quietquitting

First it was #QuietQuitting. Now it's #RageApplying.

As Canadians continue to evaluate their working conditions and flexibility during the pandemic, this latest trend has emerged thanks to a confluence of frustration and opportunity in the workforce, say some HR professionals.

"Essentially I was underpaid and overworked," said Amanda, who worked in digital marketing for an Ottawa brewery. Then she found out her employer was going to hire someone she didn't feel comfortable being around.

CBC has agreed to withhold Amanda's last name over fear of retribution.

"I was sort of hurt," Amanda told The Cost of Living, "very upset with the situation and how my boundaries weren't being respected."

So she started applying for jobs. Amanda applied for at least 15 positions.

"It was probably a week [of] rage applying," she said. 

And the result of her rage? A new job with a $25,000 increase in salary. She posted a video on TikTok about her experience, with the hashtag "RageApplying." It's been viewed more than two million times and shared more than 20,000 times.

Other videos with the #rageapplying hashtag have been similarly successful.

It's a job-seeker's market

Vancouver-based HR consultant Cissy Pau says "rage applying" is just a new way to describe something that workers have done for a long time: telling an employer to, as Johnny Paycheck so famously sang,  "take this job and shove it."

However, applying for jobs online is much simpler now, she said. 

"You can just go on to LinkedIn … and you just kind of click, click, click and you apply."

The fact that it's very much a job-seeker's market also helps. 

Cissy Pau is a human resources consultant in Vancouver. She says 'rage applying' is just a new way to describe something that workers have done for a long time. However, applying for jobs online is much simpler now, she said. (Jonetsu Studios/Submitted by Cissy Pau)

"We've had a lot of people retire; we don't have enough professionals coming up to replace them," said Evangeline Berube, a vice-president at recruiting agency Robert Half.

Robert Half routinely conducts a "job optimism" survey. The most recent survey, conducted in October and November, interviewed 1,100 professionals working in finance, tech, marketing, creative, legal, HR and customer support. 

The company — which specializes in matching workers in those fields with potential employers — found that half the respondents said they planned to seek a new job this year. This was up from 30 per cent of respondents in a smaller survey done six months earlier.

Every day I go to work, and I'm so grateful that I got mad that one day ...- Amanda

That's a noteworthy uptick, said Berube, adding that besides higher wages and better benefits, the results showed workers are seeking jobs that continue to offer better flexibility.

But Pau urged people not to let their emotions drive their search for a better job, suggesting it's better to wait until you can consider your options analytically. 

"It's not necessarily going to be better at the next place," she said.

But Amanda has no regrets about making her move.

"Every day I go to work, and I'm so grateful that I got mad that one day [and] that it made a huge difference in my life." 

---

Produced by Jennifer Keene.

Adblock test (Why?)

https://news.google.com/rss/articles/CBMiPWh0dHBzOi8vd3d3LmNiYy5jYS9yYWRpby9jb3N0b2ZsaXZpbmcvcmFnZS1hcHBseWluZy0xLjY3NTk2NDLSASBodHRwczovL3d3dy5jYmMuY2EvYW1wLzEuNjc1OTY0Mg?oc=5

2023-02-25 09:00:00Z
1793443290

PCE inflation index jumps to 5.382% YOY or 0.6% in January - Kitco NEWS

The preferred inflation index used by the Federal Reserve; the core Personal Consumption Expenditures (PCE) index jumped to its highest value since last summer. The core PCE increased by 0.6% in January when compared to the prior month, taking the year-over-year PCE to 5.382%. Today's PCE report was the result of surging consumer spending after a dramatic decline at the end of last year.

According to the BEA, "Personal income increased $131.1 billion (0.6 percent) in January, according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $387.4 billion (2.0 percent) and personal consumption expenditures (PCE) increased $312.5 billion (1.8 percent). The PCE price index increased 0.6 percent in January. Excluding food and energy, the PCE price index also increased 0.6 percent (table 9). Real DPI increased 1.4 percent and Real PCE increased 1.1 percent; goods increased 2.2 percent and services increased 0.6 percent."

The net result was strong declines in US equities and precious metals and gains in both US treasury yields and the dollar. This raises expectations that the Federal Reserve will raise rates by ¼% for the next three consecutive FOMC meetings. This also raises the expectations by market participants that the terminal fed funds rate will move to a higher target than 5.1%.

Most importantly, this report confirms that components of inflation remain sticky or persistent. This after an extremely hawkish monetary policy by the Federal Reserve has raised rates at the last eight consecutive FOMC meetings. The Fed raised its benchmark rate from near zero in March 2022 to 4.5% - 4.75% last month. It has also raised the probability of ½ a percent rate hike at the next FOMC meeting in March. According to the CME's Fedwatch tool, there is a 27% probability of that outcome.

Today's PCE report creates more bearish downside pressure for gold and silver. As of yesterday, gold futures were already priced below the opening price on January 3, the first trading day of the year.

Today's April gold futures gave up $8.80 or 0.48% and is currently fixed at $1818. March silver lost 2.66% or $0.57 and is currently fixed at $20.74 per ounce. Today's PCE report will only strengthen the resolve of the Federal Reserve to "do whatever it takes", to reduce inflation to their target level of 2%. However, their current target might be unachievable at least according to El-Erian, a Bloomberg Opinion columnist who doubts whether the Federal Reserve can achieve that goal. In fact, 3% to 3 ½% might be the new 2%.

For those who would like more information simply use this link.

Wishing you as always good trading,

Adblock test (Why?)

https://news.google.com/rss/articles/CBMia2h0dHBzOi8vd3d3LmtpdGNvLmNvbS9jb21tZW50YXJpZXMvMjAyMy0wMi0yNC9QQ0UtaW5mbGF0aW9uLWluZGV4LWp1bXBzLXRvLTUtMzgyLVlPWS1vci0wLTYtaW4tSmFudWFyeS5odG1s0gEA?oc=5

2023-02-24 23:00:00Z
1799549501

CIBC profit falls but tops forecasts on trading gains, lower loan-loss provisions - The Globe and Mail

Canadian Imperial Bank of Commerce CM-T reported lower first-quarter profit but beat analysts’ estimates as the lender set aside fewer loan loss reserves and benefited from a boost in trading activity.

CIBC earned $432-million or 39 cents per share, in the three months that ended Jan. 31. That compared with $1.9-billion or $2.01 per share, in the same quarter last year.

Adjusted to exclude certain items, including a provision for a lawsuit with a New York hedge fund, the bank said it earned $1.94 per share. That beat the $1.73 per share analysts expected, according to Refinitiv.

The bank kept its quarterly dividend unchanged at 85 cents per share.

CIBC is the first major Canadian bank to report earnings for the fiscal first quarter. The rest of the Big Six banks release financial results next week.

In the quarter, CIBC set aside $295-million in provisions for credit losses – the funds banks set aside to cover loans that may default. That was lower than analysts anticipated and included $36-million against loans that are still being repaid, based on models that use economic forecasting to predict future losses. In the same quarter last year, CIBC had recorded $75-million in provisions.

Total revenue rose 8 per cent in the quarter, to $5.9-billion. But expenses ticked higher to $4.5-billion, which the bank said was driven by higher compensation for staff and strategic investments.

“We have clear momentum in attracting and deepening client relationships, a resilient capital position, and strong risk management and credit quality,” chief executive officer Victor Dodig said in a statement.

Profit from Canadian personal and small business banking was $589-million, down 14 per cent from a year earlier, largely on higher provision for credit losses, as well as expenses related to the bank’s acquisitions of the Costco credit card portfolio in Canada and employee compensation. But loan balances were up 8 per cent year over year.

The Canadian commercial and wealth management division generated $469-million of profit, up a slight 2 per cent as higher revenue and lower expenses were offset by bigger loan loss provisions. Commercial loan balances increased by 14 per cent from a year earlier.

Capital markets posted $612-million of profit, rising 13 per cent as activity in its global markets and direct financial services businesses offset a slower investment banking quarter.

Profit from the bank’s U.S. arm fell to $201-million as the unit set aside more money for potential bad loans.

CIBC took a previously-announced legal provision of $1.17-billion after a U.S. court found the bank liable for losses incurred by a New York hedge fund in debt deals related to the 2008 U.S. housing crisis. Last week, the lender said that it agreed to pay US$770-million Cerberus Capital Management LP, less than the amount it had set aside. CIBC said that the difference will be reflected in the bank’s second-quarter financial results.

Adblock test (Why?)

https://news.google.com/rss/articles/CBMiUmh0dHBzOi8vd3d3LnRoZWdsb2JlYW5kbWFpbC5jb20vYnVzaW5lc3MvYXJ0aWNsZS1jaWJjLWZpcnN0LXF1YXJ0ZXItZWFybmluZ3MtMjAyMy_SAQA?oc=5

2023-02-24 12:18:44Z
1802866220

BOJ Ueda: standard monetary policy to not immediately respond to supply-driven inflation - ForexLive

Ueda testimony before the lower house of the Diet as part of his nomination and confirmation process

More to come

• Need to guide monetary policy based on economy, prices and their outlook
• Takes certain time for effects of monetary policy to play out in economy
• Current monetary easing appropriate
• By supporting economy with monetary easing, boj must support corporate efforts to hike wages
• Will work closely with govt to guide policy appropriately
• Japan still needs more time for inflation to sustainably hit 2% target
• It is standard monetary policy to respond preemptively to demand-driven inflation but not immediately respond to supply-driven inflation
• Want to achieve price stability sustainably and stably
• Inflation to fall below 2% around the middle of the Next fiscal year

Japan's fiscal year begins April 1, so the middle is around October. Thus Ueda is expecting inflation to fall from October this year.

Re the points I have bolded above, this is what I was talking about earlier.

Adblock test (Why?)

https://news.google.com/rss/articles/CBMiiAFodHRwczovL3d3dy5mb3JleGxpdmUuY29tL2NlbnRyYWxiYW5rL2Jvai11ZWRhLXNheXMtaXQtdGFrZXMtdGltZS1mb3ItdGhlLWltcGFjdC1vZi1tb25ldGFyeS1wb2xpY3ktdG8tcGxheS1vdXQtaW4tdGhlLWVjb25vbXktMjAyMzAyMjQv0gGMAWh0dHBzOi8vd3d3LmZvcmV4bGl2ZS5jb20vY2VudHJhbGJhbmsvYm9qLXVlZGEtc2F5cy1pdC10YWtlcy10aW1lLWZvci10aGUtaW1wYWN0LW9mLW1vbmV0YXJ5LXBvbGljeS10by1wbGF5LW91dC1pbi10aGUtZWNvbm9teS0yMDIzMDIyNC9hbXAv?oc=5

2023-02-24 00:38:00Z
1792560446

Loblaw earns $529M in Q4 profits as Canadians continue to be hit with higher food prices - CBC News

Loblaw Companies on Thursday forecast annual earnings above analysts' expectations, after the Canadian retailer's fourth-quarter results beat estimates, helped by strength in its pharmacy business and as demand held up for groceries.

The company says it earned a profit available to common shareholders of $529 million. Its fourth-quarter revenue rose about 10 per cent to $14.01 billion, topping estimates of $13.75 billion.

On an adjusted basis, Loblaw earned $1.76 per share, beating analysts' expectations of $1.71 per share.

Consumers spending on essentials

The cooking oil aisle at a Toronto Loblaws grocery store is pictured on Oct. 18, 2022. Retailers are leaning on sales of food and medicines as rising prices are forcing consumers to prioritize spending on essentials and trade down to cheaper private-label alternatives from higher-priced brands. (Evan Mitsui/CBC)

Retailers are leaning on sales of food and medicines as rising prices are forcing consumers to prioritize spending on essentials and trade down to cheaper private-label alternatives from higher-priced brands.

Loblaw posted a 9.7 per cent rise in retail segment sales, reflecting strong growth in its food and drug businesses, with steady demand for cough and cold medicines, as well as high-margin beauty and cosmetics products.

Retail bellwether Walmart Inc., however, forecast its full-year earnings below estimates on Tuesday, and warned that tight spending by consumers could pressure profit margins.

Loblaw, on the other hand, expects its full-year 2023 adjusted earnings per common share to grow in the low double-digits compared with the average analyst estimate of 9.64 per cent, according to Refinitiv IBES data.

A lack of competition

Groceries are pictured in a Vaughan, Ont., supermarket on Aug. 16, 2022. Several converging factors are putting upward pressure on food costs, including geopolitical events like the war in Ukraine, as well as climate-related disasters like a surge of avian flu in North America that is driving up poultry prices. (Evan Mitsui/CBC)

Dr. Phoebe Stephens, an assistant professor of food security and sustainable agriculture at Dalhousie University, said that grocery retail in Canada is heavily concentrated, with about 80 per cent of sales controlled by five major chains, including Loblaw.

"Whether or not greedflation is at play is really, really difficult to nail down," Stephens said, noting that food processing and manufacturing are also heavily concentrated parts of the sector.

"So there is a lack of competition there as well. And that might be allowing these companies to raise prices more so than they would be able to if there was greater competition."

Several converging factors are putting upward pressure on food costs, including geopolitical events like the war in Ukraine, as well as climate-related disasters like a surge of avian flu in North America that is driving up poultry prices.

"But there is also a question mark about the role of market concentration and a lack of competition in driving up these food prices," Stephens said. "Because of their unique position in the food system, grocery retailers actually have power over both suppliers and consumers."

Adblock test (Why?)

https://news.google.com/rss/articles/CBMiQWh0dHBzOi8vd3d3LmNiYy5jYS9uZXdzL2J1c2luZXNzL2xvYmxhdy1yZXZlbnVlLXE0LTIwMjItMS42NzU3NDgw0gEgaHR0cHM6Ly93d3cuY2JjLmNhL2FtcC8xLjY3NTc0ODA?oc=5

2023-02-23 14:42:36Z
1791354899