Business

Dollar slams yen and safe-haven status, gold gains – Kitco NEWS

Published

5 years ago

February 20, 2020

NEW YORK, Feb 20 (Reuters) – The rally in U.S. equities took
a pause and the strong dollar got stronger on Thursday, rising
to a three-year high against a basket of trading partner
currencies, after a steep slide in the Japanese yen called into
question its safe-haven status.

Gold prices hit their highest in seven years as investors
sought safe-haven assets after a rise in the number of new
coronavirus cases in South Korea. Oil prices rose, supported by
China’s efforts to bolster its virus-weakened economy.

The dollar has surged almost 2% since Tuesday against the
yen, reaching its highest in almost 10 months, and the greenback
climbed to near three-year highs against the euro.

The dollar index , a basket of the world’s most-traded
currencies, was up 0.16% to its highest level since April 2017.

The index is up 3.6% this year. It also gained to its best
levels of the year against China’s offshore yuan.

A host of reasons were cited for the dollar’s move, ranging
from outperformance of the U.S. economy and corporate earnings
to potential recessions in Japan and the euro zone.

A run of dire economic news out of Japan has stirred talk
the country is already in recession and that Japanese funds were
dumping local assets in favor of U.S. shares and gold.

“The strongest explanation (for the yen’s decline) is a
widespread selling by Japanese asset managers amid growing fears
about the health of Japan’s economy,” said Raffi Boyadijian,
investment analyst at XM.

The yen’s slide is unusual because the exchange rate with
the dollar has been shedding its close correlation to the price
of gold and U.S. Treasury yields, a development to be watched,
he said.

“This raises question marks about whether the yen is losing
some of its shine as the world’s preferred safe-haven currency,”
Boyadijian said.

Many investors are looking to buy U.S. or other assets that
would be relatively unaffected by the cyclical environment, said
Jason Draho, head of Americas asset allocation at UBS Global
Wealth Management.

China reported a drop in new virus cases and announced an
interest rate cut to buttress its economy. But
South Korea recorded an increase in new cases, Japan reported
two deaths and researchers said the pathogen seemed to spread
more easily than previously believed.

A rally that had lifted major U.S. and European stock
indexes to record highs this week lost steam, as investors
fretted about the spread of the coronavirus outside of China.

MSCI’s gauge of stocks across the globe shed
0.49% and emerging market stocks lost 0.76%.

The pan-European STOXX 600 index lost 0.86%.
Paris’ main index fell 0.8% as luxury stocks, which
derive a chunk of their demand from Chinese customers, fell
after the number of coronavirus cases outside China spiked.

LVMH , Kering and spirits maker Pernod
Ricard slid between 2.2% and 3.5%.

Analysts cited a Global Times report that said a central
Beijing hospital recorded 36 new cases among hospital staff and
patients’ families, causing U.S. stocks to drop further on fear
infections could be rising rapidly in the capital. The Dow Jones Industrial Average fell 128.05 points,
or 0.44%, to 29,219.98. The S&P 500 lost 12.92 points, or
0.38%, to 3,373.23 and the Nasdaq Composite dropped
66.22 points, or 0.67%, to 9,750.97.9,750.97

U.S. gold futures settled up 0.5% at $1,620.50 an
ounce. Spot gold hit its highest since February 2013 at
$1,622.19 an ounce.

Oil prices rose further after a U.S. report showed a draw in
gasoline inventories and a much smaller-than-anticipated rise in
crude stocks.

U.S. gasoline stockpiles fell 2 million barrels
in the week to Feb. 14. Analysts had estimated an increase of
400,000 barrels.

Data from the U.S. Energy Information Administration (EIA)
showed that crude inventories rose only 414,000
barrels last week, compared with a 2.5 million-barrel rise that
analysts had expected in a Reuters poll. Brent crude futures rose 19 cents to settle at
$59.31 a barrel and West Texas Intermediate gained 49
cents to settle at $53.78 a barrel.

Demand for safe-haven U.S. Treasury debt was robust, driving
the 30-year bond yield below the psychologically significant 2%
level to its lowest since September 2019.

The 30-year bond last rose 38/32 in price to
push its yield down to 1.9633%.

Benchmark 10-year notes last rose 15/32 in price
to yield 1.5186%.

Longer-dated euro zone government bonds led a broad rally as
concerns about an economic slowdown in the region and
virus-related damage to Asian growth boosted demand for
government debt.

The 10-year German government bond yield slid 3 basis points
to -0.44% , close to 3-1/2-month lows reached earlier
in February.

(Reporting by Herbert Lash; additional reporting by Ritvik
Carvalho in London; editing by Jonathan Oatis and Tom Brown)

Messaging: herb.lash.reuters.com@reuters.net))

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Business

Carry On Canadian Business. Carry On!

Published

15 hours ago

October 22, 2024

Steven Kaszab

Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

Business

Imperial to cut prices in NWT community after low river prevented resupply by barges

Published

19 hours ago

October 22, 2024

Anne Joseph

NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

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Business

U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

Published

19 hours ago

October 22, 2024

Anne Joseph

TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

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