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A year of modest expectations for Canadian firms, jobs: Bank of Canada's spring survey Julian Beltrame, The Canadian Press | 12 April 2010 12:12 OTTAWA - The Bank of Canada's spring survey of businesses is providing further evidence that the economic recovery is taking hold, even as key decision-makers expect improvements will be gradual rather than robust. Canadian firms are saying they expect sales to increase modestly over the next year. They also plan to hire more workers and invest more on new equipment and machinery. But most companies also report that they are operating below their capacity and expect to do so for at least the next six months. "Firms expect a modest increase in sales volumes following declines over the past year," the central bank said Monday. "Firms reported that sales expectations are supported by the U.S. general economic recovery, an improving near-term U.S. economic outlook, and, in a growing number of cases, their own initiatives to reposition themselves for growth." The quarterly survey of 100 key firms is also often cited by the central bank as a factor in its forecasts and decisions about interest rates. The latest result, while positive, is also muted enough that it is unlikely to put additional pressures on the Bank of Canada to move more quickly than it otherwise would have on interest rates. Recently, some economists have predicted the central bank will start raising interest rates at its next scheduled announcement date on June 1, about a month-and-a-half before governor Mark Carney's conditional commitment. With the economy growing at an expected six per cent clip in the first quarter, on the heels of a five per cent advance in the last three months of 2009, there is no longer any need to keep the policy rate at the emergency level of 0.25 per cent, the analysts argue. But business leaders seem to be less certain that the economy will continue to speed ahead at such an accelerated rate. On many of the indicators surveyed, the firms says their views have not changed in the past three months and, in some cases, they have become more cautious. While 64 per cent of firms expect their sales volume to rise in the next 12 months over the previous year, the balance of opinion on this question was slightly lower than during the winter survey. As well, the balance of opinion on hiring intentions is high, but still slightly lower than it was in the winter survey. The central bank says 50 per cent of firms say they intend to hire more workers in the next year than they did in the previous 12 months. More firms expect inflation to be in the two to three per cent range over the next two years, but nearly all of them still anticipate prices to remain well anchored within the central bank's range of one to three per cent annual inflation. A separate survey of senior loan officers showed that overall lending conditions are improving, but the firms themselves say they are about the same as they were three months ago. More critically, "many firms noted that access to credit remains more restrictive than it was prior to the intensification of the financial crisis in September 2008," the bank said. The most positive of the indicators was on firms' investment expectations. Forty-three per cent of firms said they expected to increase their spending on machinery and equipment over the next 12 months, with only 21 per cent saying it will likely be lower. "Rather than just repairing or replacing existing equipment, firms are increasingly focusing investment spending on expansion - often into new markets or product lines - or on improving efficiency. This is particularly the case among manufacturers," the bank said.

Message from Archbishop Collins read in 225 churches April 17/18 http://archdioceseoftoronto.blogspot.com/2010/04/message-from-archbishop-collins-to-be.html Pastoral Message from Archbishop Thomas Collins read at 225 GTA Parishes this April 18, 2010 Issue of sexual abuse addressed by Shepherd of 1.9 million Catholics TORONTO (April 16, 2010) His Grace, Archbishop Thomas Collins, has prepared a pastoral message for the faithful of the Archdiocese regarding the issue of sexual abuse and the church. The message will be read as the homily at every mass in 225 parishes this weekend. In addition, the website of the Archdiocese of Toronto, www.archtoronto.org will provide additional resources for visitors including the Archdiocesan safe environment policy, a video message from the Archbishop, his message translated into five languages, prayers for victims and links to other national and global church resources on sexual abuse. Archbishop Collins spoke directly to the priests of the Archdiocese regarding the issue during Holy Week at the March 30 Chrism Mass, the annual gathering where clergy renew their vows to the priesthood. This weekend, his message will address the faithful in parishes throughout the Greater Toronto Area. The Archdiocese of Toronto is Canada’s largest diocese, stretching from Toronto north to Georgian Bay and from Oshawa to Mississauga. It is home to 1.9 million Catholics, more than 800 diocesan and religious priests and 225 parishes, with mass celebrated in more than 30 different languages each week.

Prepare yourself for higher interest rates http://www.metronews.ca/toronto/live/article/495482--prepare-yourself-for-higher-interest Alison Griffiths | 06 April 2010 04:00 It’s official. Last week, the major banks raised mortgage rates — 60 basis points for a five-year fixed to 5.85 per cent from 5.25 per cent. Variable rate holders are quaking. Do you lock in, hold your breath and pray, downsize to delightful Musquodoboit Harbour? Panic not. June 1 is the consensus pick by the pundits for the central bank to increase interest rates. But I doubt we are going to see precipitous rises to match the fall-off-a-cliff prime rate decline from 6.25 per cent at the end of 2007 to 2.25 per cent in early 2009. So there will likely be time to prepare and consider. If you are one of the lucky ones with a variable rate pegged a certain percentage below prime — some are as much as 1 per cent — you still have lots of cushion. Even if you didn’t crack such a yummy deal, any variable rate pegged at a quarter to half over prime or less is one you want to hold on to.  Interest rates could certainly rise by a couple of percentage points in the future if the Consumer Price Index (CPI) keeps increasing. But if your term has a couple of years or more remaining, then you will still be saving on interest costs with a variable rate. Of course, you do risk renewing your mortgage at a higher rate than if you had locked in now. Fixed or variable the best way to protect yourself is to pay down your mortgage while you have the most advantageous rate. The more you take off the principal the less exposed you are to higher rates in the future. One reader is attacking her mortgage by cancelling Internet and cable TV service — neither of which she uses much since she leads a busy life. And she intends to get rid of her cellphone when the contract comes due shortly and (this is huge) do her own manicures. The $185 a month saved will nicely speed her mortgage on its way. – Alison Griffiths is a financial journalist, author and host of Maxed Out on the W Network. Write to her at alison@alisongriffiths.ca.

RBC earns international recognition for diversity http://www.southasianfocus.ca/business South Asian Focus | Tuesday April 13 2010 RBC's focused and disciplined approach over these past years has yielded positive results and recognition in diversity and multicultural circles, and now includes the prestigious and internationally renowned Catalyst Award. RBC president and CEO, Gordon M. Nixon, and Zabeen Hirji, chief human resources officer, accepted the award recently in New York City. "RBC recognizes that diversity must be part of the structural and cultural framework of our organization to ensure our longevity and to continue earning our clients' business and loyalty," said Nixon, who has been the company's most visible diversity advocate. The global RBC Diversity Leadership Council which Nixon established in 2001 and still chairs, and a growing team of diversity champions, are part of his vision to ensure that diversity is anchored in all parts of the company. Hirji is RBC's lead diversity strategist, with a focus on leadership development and talent management across the organization. "If Canada is to become the destination of choice for skilled and knowledge-based workers, professionals and entrepreneurs, we must all do a better job of leveraging the diversity of our current and future workforce," said Hirji. "While this may not always be the easiest road to travel, it requires diligence and commitment and it is our chosen path at RBC." The Catalyst Award recognizes RBC for successfully integrating diversity into its marketplace.