adplus-dvertising
Connect with us

Business

Canada’s economic growth misses forecasts, backing interest rate pause

Published

 on

The Canadian economy rebounded slightly last month but still saw little growth, backing a case for the central bank to keep rates on hold despite inflation remaining elevated.

Preliminary data suggest gross domestic product edged up 0.1 per cent in August, Statistics Canada reported Sept. 29 in Ottawa, as declines in the retail and oil and gas industries partly offset increases in the wholesale and finance sectors.

 

That followed a flat GDP reading in July, which missed expectations for a 0.1 per cent increase in a Bloomberg survey.

 

Bonds rallied after the numbers were released, driving the Canada two-year benchmark yield to 4.876 per cent, down more than 4 basis points, the lowest intraday level since Sept. 19.

 

The economy is now on track to expand at a 0.2 per cent annualized rate in the third quarter, if September output is flat. That’s weaker than the 0.4 per cent consensus estimate in a Bloomberg survey.

 

Although that means Canada could escape a technical recession with this rebound after a second-quarter contraction, the pace of growth is far weaker than the 2.6 per cent seen during the first three months of this year.

 

The report points to an economy that’s still in a soft patch as interest-rate increases weigh on indebted households and restrain spending. It leaves room for the Bank of Canada to hold short-term borrowing costs steady in late October, despite a worsening inflation backdrop.

 

The consumer price index rose four per cent in August, the second straight month of acceleration and double the central bank’s target, with core inflation still elevated.

Governor Tiff Macklem and his officials were counting on softer consumer activity to translate into slower price increases in the coming months. They stepped to the sidelines in a rate decision in early September, saying excess demand in the economy was easing. Friday’s data support that view.

 

“While inflationary pressures remain sticky above the Bank of Canada’s target range, the slowing in the economy should give central bankers confidence that their medicine is slowly working,” Royce Mendes, head of macro strategy at Desjardins, said in a report to investors. “As the economy continues to cool from the lagged impacts of rate hikes, price pressures should dissipate further.”

 

Manufacturing slump

 

This is the only GDP release before the next rate decision on Oct. 25, when the bank will also release a new set of economic projections. The majority of economists in a Bloomberg survey expect it to hold the policy rate steady at five per cent, with five out of 30 forecasters seeing a 25 basis-point hike.

 

In July, services industries rose 0.1 per cent, while goods-producing sectors contracted 0.3 per cent.

The manufacturing sector — which had the largest negative contribution in July — declined 1.5 per cent, the second straight monthly contraction, due to lower inventory formation. The port strike in British Columbia affected the chemical manufacturing the most, with the subsector seeing a 3.6 per cent decrease.

 

Transportation and warehousing contracted 0.2 per cent, with air transportation being the largest contributor to the sector’s decline. Professional, scientific and technical services contracted 0.2 per cent, the first time in eight months.

 

Oil and gas extraction rose 1.5 per cent in July, up for the sixth time in the last seven months. Finance and insurance rose for the third consecutive month, up 0.3 per cent. Real estate, rental and leasing edged up 0.1 per cent, continuing growth since November 2022.

 

Mining, excluding oil and gas, and accommodation and food services grew in July, after experiencing declines a month earlier due to forest fires. The former increased 4.2 per cent and the latter rose 2.3 per cent.

“While some disruptions have compromised the ‘cleanliness’ of recent GDP data, the bigger picture is that Canada is really struggling to grow right now,” Robert Kavcic, an economist at the Bank of Montreal, said in a report to investors. He added that real GDP looks “even weaker” when considering that the population is exploding.

 

“The Bank of Canada still has their eyes on stubborn core inflation and firm wage growth, but struggling growth argues for them to remain on hold and lean on the tightening that has already been put in place.”

 

Bloomberg.com

728x90x4

Source link

Continue Reading

Business

Stop Asking Your Interviewer Cliché Questions

Published

 on

Most job search advice is cookie-cutter. The advice you’re following is almost certainly the same advice other job seekers follow, making you just another candidate following the same script.

In today’s hyper-competitive job market, standing out is critical, a challenge most job seekers struggle with. Instead of relying on generic questions recommended by self-proclaimed career coaches, which often lead to a forgettable interview, ask unique, thought-provoking questions that’ll spark engaging conversations and leave a lasting impression.

English philosopher Francis Bacon once said, “A prudent question is one half of wisdom.”

The questions you ask convey the following:

  • Your level of interest in the company and the role.
  • Contributing to your employer’s success is essential.
  • You desire a cultural fit.

Here are the top four questions experts recommend candidates ask; hence, they’ve become cliché questions you should avoid asking:

  • “What are the key responsibilities of this position?”

Most likely, the job description answers this question. Therefore, asking this question indicates you didn’t read the job description. If you require clarification, ask, “How many outbound calls will I be required to make daily?” “What will be my monthly revenue target?”

  • “What does a typical day look like?”

Although it’s important to understand day-to-day expectations, this question tends to elicit vague responses and rarely leads to a deeper conversation. Don’t focus on what your day will look like; instead, focus on being clear on the results you need to deliver. Nobody I know has ever been fired for not following a “typical day.” However, I know several people who were fired for failing to meet expectations. Before accepting a job offer, ensure you’re capable of meeting the employer’s expectations.

  • “How would you describe the company culture?”

Asking this question screams, “I read somewhere to ask this question.” There are much better ways to research a company’s culture, such as speaking to current and former employees, reading online reviews and news articles. Furthermore, since your interviewer works for the company, they’re presumably comfortable with the culture. Do you expect your interviewer to give you the brutal truth? “Be careful of Craig; get on his bad side, and he’ll make your life miserable.” “Bob is close to retirement. I give him lots of slack, which the rest of the team needs to pick up.”

Truism: No matter how much due diligence you do, only when you start working for the employer will you experience and, therefore, know their culture firsthand.

  • “What opportunities are there for professional development?”

When asked this question, I immediately think the candidate cares more about gaining than contributing, a showstopper. Managing your career is your responsibility, not your employer’s.

Cliché questions don’t impress hiring managers, nor will they differentiate you from your competition. To transform your interaction with your interviewer from a Q&A session into a dynamic discussion, ask unique, insightful questions.

Here are my four go-to questions—I have many moreto accomplish this:

  • “Describe your management style. How will you manage me?”

This question gives your interviewer the opportunity to talk about themselves, which we all love doing. As well, being in sync with my boss is extremely important to me. The management style of who’ll be my boss is a determining factor in whether or not I’ll accept the job.

  • “What is the one thing I should never do that’ll piss you off and possibly damage our working relationship beyond repair?”

This question also allows me to determine whether I and my to-be boss would be in sync. Sometimes I ask, “What are your pet peeves?”

  • “When I join the team, what would be the most important contribution you’d want to see from me in the first six months?”

Setting myself up for failure is the last thing I want. As I mentioned, focus on the results you need to produce and timelines. How realistic are the expectations? It’s never about the question; it’s about what you want to know. It’s important to know whether you’ll be able to meet or even exceed your new boss’s expectations.

  • “If I wanted to sell you on an idea or suggestion, what do you need to know?”

Years ago, a candidate asked me this question. I was impressed he wasn’t looking just to put in time; he was looking for how he could be a contributing employee. Every time I ask this question, it leads to an in-depth discussion.

Other questions I’ve asked:

 

  • “What keeps you up at night?”
  • “If you were to leave this company, who would follow?”
  • “How do you handle an employee making a mistake?”
  • “If you were to give a Ted Talk, what topic would you talk about?”
  • “What are three highly valued skills at [company] that I should master to advance?”
  • “What are the informal expectations of the role?”
  • “What is one misconception people have about you [or the company]?”

 

Your questions reveal a great deal about your motivations, drive to make a meaningful impact on the business, and a chance to morph the questioning into a conversation. Cliché questions don’t lead to meaningful discussions, whereas unique, thought-provoking questions do and, in turn, make you memorable.

_____________________________________________________________________

 

Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.

Continue Reading

Business

Canadian Natural Resources reports $2.27-billion third-quarter profit

Published

 on

 

CALGARY – Canadian Natural Resources Ltd. reported a third-quarter profit of $2.27 billion, down from $2.34 billion in the same quarter last year.

The company says the profit amounted to $1.06 per diluted share for the quarter that ended Sept. 30 compared with $1.06 per diluted share a year earlier.

Product sales totalled $10.40 billion, down from $11.76 billion in the same quarter last year.

Daily production for the quarter averaged 1,363,086 barrels of oil equivalent per day, down from 1,393,614 a year ago.

On an adjusted basis, Canadian Natural says it earned 97 cents per diluted share for the quarter, down from an adjusted profit of $1.30 per diluted share in the same quarter last year.

The average analyst estimate had been for a profit of 90 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Oct. 31, 2024.

Companies in this story: (TSX:CNQ)

The Canadian Press. All rights reserved.

Source link

Continue Reading

Business

Cenovus Energy reports $820M Q3 profit, down from $1.86B a year ago

Published

 on

 

CALGARY – Cenovus Energy Inc. reported its third-quarter profit fell compared with a year as its revenue edged lower.

The company says it earned $820 million or 42 cents per diluted share for the quarter ended Sept. 30, down from $1.86 billion or 97 cents per diluted share a year earlier.

Revenue for the quarter totalled $14.25 billion, down from $14.58 billion in the same quarter last year.

Total upstream production in the quarter amounted to 771,300 barrels of oil equivalent per day, down from 797,000 a year earlier.

Total downstream throughput was 642,900 barrels per day compared with 664,300 in the same quarter last year.

On an adjusted basis, Cenovus says its funds flow amounted to $1.05 per diluted share in its latest quarter, down from adjusted funds flow of $1.81 per diluted share a year earlier.

This report by The Canadian Press was first published Oct. 31, 2024.

Companies in this story: (TSX:CVE)

The Canadian Press. All rights reserved.

Source link

Continue Reading

Trending