adplus-dvertising
Connect with us

Business

Rob Carrick: What the Bank of Canada rate hike means for investors and savers who want to park money safely

Published

 on

The benefit of parking cash in a high-interest savings account ETF was demonstrated this week after the latest increase in the Bank of Canada’s overnight rate.

The central bank raised its trendsetting rate by a quarter of a percentage point Wednesday. Almost immediately, the yield on HISA exchange-traded funds increased by a similar amount. For example, the gross yield on the Horizons High Interest Savings ETF CASH-T was 5.18 per cent late this week, up from 4.93 per cent late last month. CASH has a management expense ratio of 0.11 per cent, so its net yield is now 5.07 per cent.

Changes in the overnight rate do not directly influence returns from guaranteed investment certificates, but there’s an indirect effect that right now is working in favour of GIC investors. The Bank of Canada is worried about inflation – that’s why it increased the overnight rate. Inflation fears are also weighing on the bond market, where rates have been moving higher as well lately. Yields on Government of Canada bonds influence rates on GICs, which have been creeping higher lately for terms of one and two years.

As of late this week, the number of alternative banks, trust companies and credit unions offering 5 per cent for one year had grown to seven, and the number offering 5 per cent for two years was four. The best three-year rate was 4.95 per cent. GIC issuers have been reluctant to raise rates on longer terms, but this could change if bond yields keep rising.

300x250x1

HISA ETFs accounted for two of the top 10 sellers last month in ETF land, even though they are under review by the federal Office of the Superintendent of Financial Institutions. These funds hold their assets in accounts at big banks that pay rates of return that are superior to what’s offered to retail depositors. Regulators at OSFI are looking into what would happen to banks if investors were to pull all their money from HISA ETFs at once. OSFI may order changes that will lower returns on HISA ETFs.

As a hedge against this outcome, some ETF providers recently introduced funds holding government treasury bills. T-bill yields have been rising lately as a result of the same inflation concerns that drove the Bank of Canada rate increase this week. T-bill ETF yields would benefit if this continues.

HISAs for investors are also available in a mutual fund format. Rates on these products have been stuck in the 4.05 to 4.35 per cent range in recent months.

 

728x90x4

Source link

Continue Reading

Business

Canada's greenhouse gas emission up 2.1 per cent from last year due to oil and gas production, cold winter: report – CTV News

Published

 on


We use cookies and data to

  • Deliver and maintain Google services
  • Track outages and protect against spam, fraud, and abuse
  • Measure audience engagement and site statistics to understand how our services are used and enhance the quality of those services

If you choose to “Accept all,” we will also use cookies and data to

  • Develop and improve new services
  • Deliver and measure the effectiveness of ads
  • Show personalized content, depending on your settings
  • Show personalized ads, depending on your settings

If you choose to “Reject all,” we will not use cookies for these additional purposes.

300x250x1

Non-personalized content is influenced by things like the content you’re currently viewing, activity in your active Search session, and your location. Non-personalized ads are influenced by the content you’re currently viewing and your general location. Personalized content and ads can also include more relevant results, recommendations, and tailored ads based on past activity from this browser, like previous Google searches. We also use cookies and data to tailor the experience to be age-appropriate, if relevant.

Select “More options” to see additional information, including details about managing your privacy settings. You can also visit g.co/privacytools at any time.

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Business

Algoma Steel issues statement on auto worker strikes – SooToday

Published

 on


We use cookies and data to

  • Deliver and maintain Google services
  • Track outages and protect against spam, fraud, and abuse
  • Measure audience engagement and site statistics to understand how our services are used and enhance the quality of those services

If you choose to “Accept all,” we will also use cookies and data to

  • Develop and improve new services
  • Deliver and measure the effectiveness of ads
  • Show personalized content, depending on your settings
  • Show personalized ads, depending on your settings

If you choose to “Reject all,” we will not use cookies for these additional purposes.

300x250x1

Non-personalized content is influenced by things like the content you’re currently viewing, activity in your active Search session, and your location. Non-personalized ads are influenced by the content you’re currently viewing and your general location. Personalized content and ads can also include more relevant results, recommendations, and tailored ads based on past activity from this browser, like previous Google searches. We also use cookies and data to tailor the experience to be age-appropriate, if relevant.

Select “More options” to see additional information, including details about managing your privacy settings. You can also visit g.co/privacytools at any time.

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Business

US autoworkers expanding strike at Ford, General Motors

Published

 on

United States autoworkers are expanding their two-week strike to additional locations, with the head of a major union saying 7,000 more workers will join the picket lines as labour talks have failed to advance significantly.

United Auto Workers (UAW) President Shawn Fain said in a video appearance on Friday that negotiations have not broken down but Ford and General Motors “have refused to make meaningful progress”.

The strike will expand to Ford’s Chicago assembly plant and GM’s assembly plant in Lansing, Michigan, at midday on Friday, said Fain, bringing the total number of workers on the picket lines to 25,000. The strike will not include any additional members at Jeep maker Stellantis.

“Sadly, despite our willingness to bargain, Ford and GM have refused to make meaningful progress at the table,” Fain said.

300x250x1

“Let’s stand up and win this thing – for ourselves, for our families, for our communities, for our country and for our future,” the UAW president added.

The union launched the partial, coordinated strike earlier this month, with thousands of workers across 20 states walking off the job to push for wage increases, shorter hours and improved retirement benefits.

The work stoppage has drawn national attention, with US President Joe Biden and his Republican predecessor and likely 2024 election challenger Donald Trump both travelling to Michigan this week to show support for the striking workers.

Speaking from a picket line outside an auto plant west of Detroit on Tuesday, Biden called for a “significant raise” for the employees.

“You made a lot of sacrifices, gave up a lot, and the companies were in trouble,” the Democratic president said, referring to the 2008 financial crisis when US car manufacturers were on the verge of bankruptcy.

“Now they’re doing incredibly well. And guess what? You should be doing incredibly well.”

The UAW is expected to continue work stoppages currently under way until a new contract is ratified, a source familiar with the situation, speaking on condition of anonymity, told the Reuters news agency.

Automakers say the union’s demands would hurt their profits as they try to compete with non-union manufacturers such as Tesla.

The companies’ last known wage offers were around 20 percent over the life of a four-year contract, a little more than half of what the union has demanded.

Other contract improvements, such as cost of living increases, restoration of defined benefit pensions for newly hired workers, and an end to tiers of wages within the union are also on the table.

Progress was reported in talks on Thursday night, especially with Stellantis.

On Friday, Ford CEO Jim Farley said he felt his company could reach a compromise on pay and benefits with the unions. But he accused the UAW of “holding the deal hostage” over Ford’s use of outside companies — with non-union workers — to build batteries for electric vehicles, or EVs.

About 18,300 UAW members at the Detroit Three are currently on strike, or about 12 percent of the 146,000 union members working at the automakers. Strikers have been getting $500 a week from the UAW’s strike fund.

“To be clear, negotiations haven’t broken down. We’re still talking with all three companies and I’m still very hopeful that we can reach a deal,” said Fain, the union president.

“We are fed up with corporate greed and we are fed up with corporate excess. We are fed up with breaking our bodies for companies that take more and more and give less and less.”

SOURCE: AL JAZEERA AND NEWS AGENCIES
728x90x4

Source link

Continue Reading

Trending