Signs are emerging that the oil industry is on an upswing, a nascent program in Canada to stimulate growth in Alberta’s petrochemicals sector just awarded its first grant, and clean energy is a core part of Biden’s proposed American Jobs Plan. Biweekly, we round up news and analysis about three things ... READ MORE >
Canada
CHART OF THE DAY: Spillover effects of U.S. stimulus programs on Canada’s commodity and energy prices
Financial markets are already pricing in a pickup in U.S. growth and an increase in demand for commodities and energy. This comes as U.S. vaccinations are taking off and as negotiations begin on its massive infrastructure program. With the service sector still struggling, U.S. manufacturing looks to be ... READ MORE >
3 things to know this week in energy: Suez Canal blockage, oil field deals, carbon pricing
This past week’s blockage of the Suez Canal registered briefly in the oil market before the ship was freed, several high-profile oil field deals are expected soon, and the Supreme Court of Canada recently ruled carbon pricing constitutional. Biweekly, we round up news and analysis about three things ... READ MORE >
Closing Canada’s output gap with a little help from its friends
The developed economies of the world are on the verge of recovery, the pace of which will depend on how fast vaccinations are administered and when confidence in personal interaction is restored. The Organization for Economic Co-operation and Development’s latest economic outlook put it succinctly: ... READ MORE >
CHART OF THE DAY: Rail deal is a sign of increasing North American economic integration
One of our major macroeconomic narratives for this year is the easing of trade tensions among major North American trading partners, and Canadian Pacific’s $25 billion deal to purchase Kansas City Southern marks a significant move in this direction. The deal would create the first railroad network ... READ MORE >
3 things to know in energy: OPEC+ cuts, U.S. oil exports to India rise, carbon trading in Canada
OPEC+ surprised some in the energy market with its recent decision to extend oil production cuts, the United States is now India’s No. 2 oil supplier, and Canada’s government is embarking on creating a federal carbon trading marketplace. Biweekly, we round up news and analysis about three things going ... READ MORE >
RSM Canada Financial Conditions Index: Bank of Canada to remain accommodative
We anticipate that the Bank of Canada will maintain its overnight target rate of 0.25% and retain its current policy of accommodation in its announcement on Wednesday. Expectations are that the effects of the pandemic will have dampened economic growth during the first quarter of this year, even as ... READ MORE >
3 things to know this week in energy: Texas’ grid, oil prices and Canadian crude-by-rail exports
All eyes remain on Texas and the state’s energy grid operator in the aftermath of a devastating winter storm, oil prices responded positively to the U.S. House passing a new COVID-19 relief bill, and Canadian crude-by-rail exports are rebounding after a rough 2020. Biweekly, we round up news and ... READ MORE >
Inflation-adjusted interest rates and investment in the future of Canada’s economy
A confluence of events and policy shifts has coalesced into a unique opportunity for the Canadian government and firms to make long-term strategic investments. The arrival of inflation-adjusted negative interest rates presents a rare chance for Canadian businesses to invest in their firms and ... READ MORE >
Why Biden’s $1.9 trillion stimulus package would be a boon for Canada
Joe Biden’s proposed $1.9 trillion fiscal aid package would not only provide a significant stimulus for the United States, but it would also have a big effect on the Canadian economy. Why should Canadians care? In short, it’s because the Canadian economy cannot help but be affected by its neighbor ... READ MORE >