Newsline Canada

Canadian Finance Minister says serious recession persists http://ca.news.yahoo.com/s/reuters/090420/canada/canada_us_flaherty  By Ros Krasny CHICAGO (Reuters) - Canadian Finance Minister James Flaherty said on Monday he is seeing "some small encouraging signs" for the country's economy, but that Canada remains in a "serious recession." "We will continue to have serious challenges; this is a difficult year," Flaherty said on the sidelines of a Chicago Federal Reserve Bank conference on financial literacy. Among the positives, the Canadian bond market is "functioning well again and there are some encouraging signs in capital markets," he said. Asked about the possibility that more measures to boost Canada's economy will be needed, Flaherty said that stimulus already in place "is just entering the economy now." "The fiscal year started April 1 and the major investments are happening in the first quarter -- April, May, June. We need to make those investments and see where we stand," he said. The Bank of Canada is due to meet this week about possible additional measures it can take to stimulate the country's economy beyond rate cuts. Like the U.S. Fed, the BOC has cut interest rates drastically -- in Canada's case to 0.5 percent -- in an attempt to pull the country out of recession. Many market participants expect some form of quantitative easing to be attempted in Canada by the end of the second quarter now that rates are at rock-bottom. Flaherty said a recovery in the banking sector is essential to reviving economic growth. "There are still issues with respect to some of the American banks and some of the European banks. The primary point that we've been making internationally is that fixing the banks is the sine qua non of economic recovery," he said. "I'm encouraged by what (U.S. Treasury Secretary) Tim Geithner is doing in terms of stress-testing banks." The Obama administration has said that results on the stress tests of the nation's 19 top banks would be released on May 4. (Editing by Theodore d'Afflisio)

Bank of Canada Slashes Interest Rates to All Time Low Recession in Canada will be deeper than anticipated http://www.bankofcanada.ca/en/fixed-dates/2009/rate_210409.html 21 April 2009 Excerpts… Bank of Canada lowers overnight rate target by 1/4 percentage point to 1/4 per cent and, conditional on the inflation outlook, commits to hold current policy rate until the end of the second quarter of 2010 OTTAWA – The Bank of Canada today announced that it is lowering its target for the overnight rate by one-quarter of a percentage point to 1/4 per cent, which the Bank judges to be the effective lower bound for that rate. The Bank Rate is correspondingly lowered to 1/2 per cent. The deposit rate - the rate paid on deposits held by financial institutions at the Bank of Canada - is left unchanged at 1/4 per cent and provides the floor for the overnight rate. In an environment of continued high uncertainty, the global recession has intensified and become more synchronous since the Bank's January Monetary Policy Report Update, with weaker-than-expected activity in all major economies. Deteriorating credit conditions have spread quickly through trade, financial, and confidence channels. While more aggressive monetary and fiscal policy actions are underway across the G20, measures to stabilize the global financial system have taken longer than expected to enact. As a result, the recession in Canada will be deeper than anticipated, with the economy projected to contract by 3.0 per cent in 2009. The Bank now expects the recovery to be delayed until the fourth quarter and to be more gradual. The economy is projected to grow by 2.5 per cent in 2010 and 4.7 per cent in 2011, and to reach its production capacity in the third quarter of 2011. Given significant restructuring in a number of sectors, potential growth has been revised down. The recovery will be importantly supported by the Bank's accommodative monetary stance

Recession making homes more affordable:RBC. http://www.canada.com/Recession+making+homes+more+affordable/1502708/story.html  Excerpt from: Canwest News Service; Financial Post April 16, 2009 OTTAWA - A recession-driven decline in home prices and sales is making housing more affordable, according to a report released Thursday by RBC Economics. "While the Canadian housing market has felt the strain of the contraction in the domestic economy since the fourth quarter of 2008, improved housing affordability is mitigating some of the stress felt by home buyers,'' according to the latest housing report released today by RBC Economics. Robert Hogue, senior economist at RBC, said declining consumer confidence, a weakening job market and a credit crisis "have had a predictable impact on Canada's housing markets - home sales have dropped, prices have given into intense downward pressure; and residential construction has slowed substantially'' "As the recession rages on with the all-important spring season upon us, the ongoing cyclical correction will put the entire housing sector to the test in coming months,'' he said.

Urban Sprawl Linked to Obesity http://www.bramptonguardian.com/printArticle/67767 Peel Region report links urban sprawl to obesity Monday April 13 2009 A newly released report by region health officials suggests the growing number of overweight and obese residents in Peel is partially linked to urban sprawl. "Sprawling low-density development has been a widespread trend in Peel for the last ten years," said Peel Medical Officer of Health Dr. David Mowat, the report's main author. "And solid evidence links such sprawl to lower levels of physical activity, transportation injuries, and poor air quality." The document, titled A Picture of Health, reveals 47 per cent of the population (every second person in Peel) is overweight or obese. The report suggests this is partially the result of the way planners have designed and built suburbs in North America, with far distances between homes and stores, jobs and schools. "Suburbia" in its present form isn't exactly pedestrian-friendly and is far more geared to a "car culture." Mowat said since a mass exodus from the suburbs - or the creation of more walkable neighborhoods - is not foreseeable in the near future, the Peel report is calling for a dedicated and proactive campaign to encourage citizens to eat well, move more and live longer. "Canadians take it for granted that better prevention and treatment of disease is going to guarantee a longer lifespan, but it could all be jeopardized by the growing threat of obesity and its consequences, especially diabetes," Mowat said. The full text of A Picture of Health is available online at www.peelregion.ca/health/health

Two Thirds (65%) of Ontario Homeowners Oppose Proposed Mandatory Home Energy Audit Program Principal Residence Homeowners Overwhelmingly Support Voluntary (92%), Not Mandatory (8%), Audits TORONTO, April 20 /CNW/ - A poll released today by the Ontario Real Estate Association (OREA) indicates that two-thirds (65%) of Ontario's principal residence homeowners oppose the recently proposed McGuinty government mandatory home energy audit program and instead overwhelmingly favor voluntary audits (92%). Moreover, the poll found that 70 per cent of Ontario homeowner's think that mandatory home energy audits will deter homeowners from selling their home, having a detrimental effect on the real estate sector and the Ontario economy. The poll was conducted by Ipsos-Reid for the Ontario Real Estate Association (OREA) to judge consumer reaction to the provincial government's proposal for mandatory home energy audits prior to sale. The survey also found: Two thirds (62%) of Ontario homeowners believe proposed program is a "poor idea" and seven in 10 (68%) say it's unnecessary A massive majority (94%) of Ontario homeowners believe mandatory home energy audits will impose significant cost on home sellers and first time buyers (82%) The findings of the poll conducted March 30 to April 1, 2009 of 692 principal residence homeowners in Ontario from Ipsos Reid at http://www.ipsos-na.com/news/

Passport rush predicted as U.S. land and sea border deadline looms BCAA recommends travellers don't leave passport application until the last minute BURNABY, BC, April 9 /CNW/ - With less than 60 days before the new requirement to show a passport when entering the U.S. by land and sea, BCAA is recommending travellers needing a passport apply as soon as possible to avoid potential inconvenience and disappointment. Starting June 1, 2009 Canadians travelling to, from or via the U.S. by land and sea must present a passport at U.S. Customs. This new requirement is the second and final stage of the Western Hemisphere Travel Initiative (WHTI), a U.S. plan aimed at tightening border security. Until now, Canadians have only needed a driver's licence and proof of citizenship to enter or re-enter the States by land and sea. In January 2007, passport requirements were introduced for Canadians travelling to, from or via the U.S. by air. In addition to a passport, other WHTI-compliant documents can be used when entering the U.S. by land post June 1: a NEXUS card, FAST card or an Enhanced Driver's Licence (EDL) or Enhanced Identification Card (EIC) from a province or territory where a U.S.-approved EDL/EIC program has been implemented. Note however, Canadian citizens entering the United States by land but exiting by air must present a valid passport in compliance with U.S. air exit requirements. "Back in 2007, when travellers began needing a passport to fly into the U.S., the long and lengthy lineups made frontpage news," says BCAA Travel Director, Dale Urquhart. "We are reminding customers that it takes time to locate or obtain the necessary documentation to apply for a passport." "The new rule may impact many B.C. vacationers who prefer to travel by land or sea," adds Urquhart. "The U.S. is among the biggest international destinations for B.C. travellers and the June 1 deadline coincides with the start of summer holiday season." According to Passport Canada, passport applications take two weeks if processed in person or four weeks if processed by mail, not including mailing time. For information on obtaining a passport, visit Passport Canada website: www.pptc.gc.ca. Passport applications and passport photos (BCAA members save $2) are available at any BCAA sales centre. To find your closest BCAA sales centre, go to www.bcaa.com. BCAA Travel is one of the largest travel agencies in B.C. and one of the first in Canada to introduce a fully-disclosed pricing policy. All advertised prices under BCAA's "What You See Is What You Pay" prices include all fees, surcharges and taxes. BCAA is there for its customers before, during, and after their vacations with its Travel Guarantee and 24-Hour Travellers' Helpline. BCAA also offers travel planning tools such as TripTik(R) routing maps & TourBook(R) guides. For further information: Jennifer Timm, BCAA Media Relations Advisor, Tel: (604) 268-5342, Cell: (778) 228-8859, E-mail: jennifer.timm@bcaa.com