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CMHC still bracing for impact of COVID-19 on housing market – CBC.ca

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Canada Mortgage and Housing Corp. is bracing for further impacts on the housing market from the COVID-19 pandemic.

The housing market will have to reckon with significant short-term uncertainty, as well as falling housing demand from weaker household incomes in the medium term, the Crown corporation said on Friday.

The Canadian housing market broke sales and price records in July as it continued to play catch-up after spring shutdowns.

But CMHC said the economic shock of the pandemic has not yet been fully reflected in the latest housing market data, predicting the process of containing COVID-19 could still pose a risk to prices, sales and new building projects.

“While it will take several months for the economic impacts of COVID-19 to fully materialize, some factors are starting to work their way into in our financial results — for example, we are starting to see the impacts in our provisions for insurance claims,” said Lisa Williams, CMHC’s chief financial officer, in a statement on the corporation’s second-quarter financial results.

CMHC posts $566M profit

CMHC is reporting net income of $566 million in the three months ending June 30, up from $379 million during the same period last year, with an arrears rate of 0.34 per cent.

While CMHC took on new government programs and funding, it also saw claims expenses jump by $256 million, or 711 per cent, due to an increase in provisions for COVID-19 related claims, including the outlook for mortgage loans currently in deferral.

CMHC has purchased $5.8 billion of insured mortgage pools this year as part of a government program, and is also administering the Canada Emergency Commercial Rent Assistance program for small businesses.

CHMC’s next report will also show the impact of its stricter underwriting criteria, which as of July 1 tightened credit score and down payment requirements for insured mortgages.

The corporation also said it has suspended dividends to save money in case further government action is needed.

“We remain in a strong financial position to bear the full impacts of COVID-19, and to take further steps to support Canadians and the economic recovery if necessary,” Williams said.

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Canadian security firm Garda goes hostile in $5.2B bid for British company G4S – CBC.ca

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Garda World Security Corp. is making a hostile play for G4S after the British security company spurned its $5.2 billion US offer two weeks ago.

The Montreal-based company appealed directly to G4S shareholders by criticizing the firm’s directors and accusing them of acting in a “cavalier manner” by rejecting several approaches in recent months.

GardaWorld founder, president and CEO Stephane Cretier says that G4S faces profound difficulties and needs an owner and operator that understands the industry and has a well-defined plan.

The reputation of the GS4 has been damaged in recent years, especially for the lack of agents during the 2012 London Olympics to assure security.

Through its subsidiary Fleming Capital Securities, GardaWorld offered 190 pence for each share of the British company. On the London Stock Exchange, G4S shares gained 5.9 per cent at 200.30 pence in Wednesday trading.

GardaWorld unveiled the terms of its proposal on Sept. 14 in an attempt to force the hand of the British company, which has described the move as “highly opportunistic.”

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Everything you need to know about the Canada Recovery Benefit, the new program replacing CERB – National Post

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How do I know if I qualify for EI?

For the next year, accessing EI benefits is much easier. To qualify for EI, you must have been employed for at least 120 insurable hours in the past 52 weeks. If you received CERB, that 52-week deadline can be extended.

These changes will also establish a minimum weekly benefit rate of $500 for EI recipients, at the same level as CRB.

How much are the CRB payments and how often will I get them?

You will receive $500 per week for up to 26 weeks.

What other benefits are there?

The Canada Recovery Sickness Benefit (CRSB) provides $500 per week for up to two weeks for workers who are sick, or who must self-isolate for reasons related to COVID-19. People who receive paid sick leave from their employer are not eligible.

The Canada Recovery Caregiving Benefit (CRCB) provides $500 per week for up to 26 weeks per household for eligible Canadians unable to work because they must care for a child or family member.

You cannot claim CRCB or CRSB while on EI or CRB.

Is CRB taxable?

All benefits received under the three Canada Recovery Benefit programs are considered taxable income.

Where do I apply for CRB

Just like CERB, you will be able to apply for CRB through the Canada Revenue Agency (CRA) portal.

For more information, see the government’s website.

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Canada's GDP grew 3 per cent in July – Yahoo Canada Finance

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EDMONTON, ALBERTA - AUGUST 28: Construction continues on the LRT - Light Rail Transit through the city centre as photographed on August 28, 2020 in Edmonton, Alberta, Canada. (Photo by Bruce Bennett/Getty Images)
EDMONTON, ALBERTA – AUGUST 28: Construction continues on the LRT – Light Rail Transit through the city centre as photographed on August 28, 2020 in Edmonton, Alberta, Canada. (Photo by Bruce Bennett/Getty Images)

Canadian GDP expanded by 3 per cent in July, as the economic recovery from the effects of COVID-19 continues.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Statistics Canada says it was the third straight month-over-month increase, but the economy remains 6 per cent below its pre-pandemic level.” data-reactid=”24″>Statistics Canada says it was the third straight month-over-month increase, but the economy remains 6 per cent below its pre-pandemic level.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Growth is also slowing, considering June’s increase was 6.5 per cent.” data-reactid=”25″>Growth is also slowing, considering June’s increase was 6.5 per cent.

All 20 industrial sectors were higher.

Some industries faired better than before the pandemic. Agriculture, utilities, finance and insurance, and real estate rental and leasing sectors surpassed February’s levels.

The manufacturing sector grew 5.7 per cent as factories continued to ramp up production. Accommodation and food services jumped 20.1 per cent, the third straight double digit advance.

“But those figures come off a very low base and are still facing the deepest slump versus year-ago levels. With the resurgence in virus cases, the struggles in those sectors could actually deepen further in the near-term,” said Benjamin Reitzes, director, Canadian rates & macro strategist at BMO.

In another sign of slowing growth going forward, Statistics Canada estimates GDP grew by 1 per cent in August.

“Together, the data are consistent with our call for a roughly 46 per cent annualized gain in Q3 GDP, but the slowing in August, coupled with the surge in the virus in recent weeks, suggest a much smaller gain is in store for Q4,” said Avery Shenfeld, chief economist at CIBC World Markets.

For comparison, annualized GDP fell 38.7 per cent in the second quarter — the worst since Statistics Canada started tracking it in 1961.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter&nbsp;@jessysbains.” data-reactid=”33″>Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Download the Yahoo Finance app, available for&nbsp;Apple&nbsp;and&nbsp;Android.” data-reactid=”34″>Download the Yahoo Finance app, available for Apple and Android.

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