|Bid||76.97 x 0|
|Ask||76.98 x 0|
|Day's Range||76.89 - 77.54|
|52 Week Range||65.56 - 80.05|
|Beta (3Y Monthly)||1.07|
|PE Ratio (TTM)||12.41|
|Earnings Date||Aug 29, 2019|
|Forward Dividend & Yield||2.96 (3.84%)|
|1y Target Est||83.93|
TORONTO , July 18, 2019 /CNW/ - The Toronto-Dominion Bank ("TD Bank Group" or "TD") announced today that none of its 20 million Non-Cumulative 5-Year Rate Reset Preferred Shares, Series ...
TORONTO, July 18, 2019 /CNW/ - TD Asset Management Inc. ("TDAM"), the manager of TD Mutual Funds and TD Managed Assets Program portfolios, today announced changes to certain investment funds. The changes include fund mergers, investment objectives and risk rating updates and other changes as described below.
TORONTO , July 18, 2019 /CNW/ - TD Asset Management Inc. ("TDAM") today announced the July cash distributions for the TD Exchange-Traded Funds (the "TD ETFs") listed below. Unitholders ...
When investing in Canada's big banks, pick the one that is expected to deliver a greater overall return.
(Bloomberg) -- California Senator Kamala Harris raised $11.8 million in the second quarter, putting her fifth in fundraising among 2020 Democratic presidential candidates who filed campaign finance reports with the Federal Election Commission on Monday.Harris reported that 45 percent of her contributions came from low-dollar donors of $200 or less, and she spent $7.4 million during the quarter, leaving her $13.3 million cash on hand as of the end of June, according to her filing.South Bend, Indiana, Mayor Pete Buttigieg is the surprise leader with $24.9 million after beginning his campaign with little name recognition, followed by former Vice President Joe Biden, Massachusetts Senator Elizabeth Warren and Vermont Senator Bernie Sanders.The California senator’s campaign said it had raised $2 million after her appearance in the Democratic debate on June 27, when she challenged Biden over his record on school desegregation as a Delaware senator in the 1970s. Her campaign said she raised $3.2 million in the final three days of the quarter.Biden’s Fundraising Haul Trails Only Buttigieg’sFormer Vice President Joe Biden raised $22 million in his first two months in the 2020 Democratic presidential race, lagging the $24.9 million in second-quarter fundraising reported by upstart South Bend, Indiana Mayor Peter Buttigieg.Biden’s report with the Federal Election Commission showed that 38% of his contributions came from small-dollar donors of $200 or less. The frontrunner raised more money per day than any rival, his campaign said when it announced his fundraising numbers July 3. He spent about half of his contributions -- leaving him with $10.9 million cash on hand at the end of June, according to his FEC report.Biden, who kicked off his campaign on April 25, didn’t take any contributions toward the general election -- which campaigns can accept and hold in reserve, according to his campaign. He also reported contribution refunds of more than $540,000.Big Donors Help Fuel Trump Second-Quarter Fundraising SurgePresident Donald Trump’s campaign and joint fundraising committees reported raising a total of $68 million in the second quarter, and ended June with $80.2 million in the bank, as bigger donations began to supplant Trump’s small-dollar support, according to their filings with the Federal Election Commission.Grassroots donors, those contributing $200 or less, supplied 35% of Trump’s haul, down from 56% in January-March. Small-dollar donations totaled $23.7 million to the three committees, with the bulk, $19.5 million, received by Trump Make America Great Again Committee, which benefits the president’s campaign and the Republican party.The $108 million figure reported earlier Monday included money raised by the Republican National Committee, which doesn’t report its fundraising to the FEC until Saturday.Trump Victory, which focuses on big donors, raised $29.1 million, just shy of $30.2 million Trump MAGA tallied. Joseph Nakash, chief executive officer and co-founder of Jordache Enterprises, donated $250,000, the biggest political contribution he’s made and his first to Trump. Billionaire Phil Ruffin gave $255,200 while his wife, Oleksandra Nikolyenko-Ruffin, gave $244,800. Marvel Entertainment chairman Isaac Perlmutter and his wife, Laura, each gave $360,000.Longtime GOP donors supported Trump as well. Roofing supply billionaire Diane Hendricks gave $360,000 as did Marlene Ricketts, wife of TD Ameritrade founder Joe Ricketts. Trump’s first pick to head the Small Business Administration, Linda McMahon, gave the same amount, as did Robert “Woody” Johnson IV, the current U.S. ambassador to the U.K.Some of that money was earmarked for the Republican National Committee. The RNC announced it raised $51.3 million.Buttigieg Money Haul in Second Quarter Tops Democratic RivalsPete Buttigieg raised $24.9 million in the second quarter, the most of any candidate who has announced fund-raising totals for the period, and had $22.7 million cash on hand as of June 30 to cement his status as a top-tier 2020 Democratic presidential candidate.The fundraising haul more than tripled the amount the mayor of South Bend, Indiana, raised in the first quarter, in which he reported $7.4 million in campaign donations, according to his finance report filed Monday with the Federal Election Commission.Buttigieg’s campaign held 70 fundraisers in the second quarter, most of which focused on high-dollar donors. But he also staged events catered to grassroots supporters and generated 44 percent of his total contributions from small-dollar donors of $200 or less, according to his reportHollywood Women Donate to Warren Who Swears Off Big DonorsElizabeth Warren is attracting a host of big names in Hollywood -- even though she swore off taking money from big donors.Entertainers Jane Fonda, Scarlett Johanssen, Bette Midler and Barbra Streisandeach gave the Massachusetts senator $2,800 -- the maximum amount a donor can give to a primary campaign. Comedian Amy Schumer gave $5,600, including an additional $2,800 for the general election, should Warren win the nomination. Prolific Democratic bundler Jeffrey Katzenberg of Dreamworks Animation and his wife Marilyn Katzenberg each gave Warren got $2,800 checks.Still, small-dollar donors, those giving $200 or less, fueled 67% of Warren’s fundraising. That was just behind Vermont Senator Bernie Sanders, who got 70% of his haul from grassroots donors in the second quarter.Beto O’Rourke’s Fundraising Collapses as Poll Numbers RecedeFormer Texas Representative Beto O’Rourke’s fundraising dwindled to $3.6 million in the second quarter from $9.4 million in the early days of his presidential run, his campaign said, when he seemed like a rising star.Unlike other top 2020 Democratic presidential contenders, O’Rourke waited until Monday’s filing deadline to disclose his figures -- fueling speculation that the numbers wouldn’t be good. South Bend, Indiana, Mayor Pete Buttigieg and former Vice President Joe Biden reported early second-quarter fundraising totals of $24.8 million and $21.5 million, respectively.O’Rourke’s campaign said he received 119,888 donations with an average contribution of $30. He has met the 130,000 unique donor requirement for the fall primary debates set by the Democratic National Committee. However, his poll numbers dropped before and after a shaky performance in the June 26 debate and stand at less than 3% in recent surveys compiled by RealClearPolitics.Sanders’ Money Haul Slips in June, Claims He Has ‘More People’Senator Bernie Sanders had $27.3 million cash on hand at the end of June after raising $18 million for his Democratic presidential bid in the second quarter, slipping to fourth place from his perch as the biggest fund raiser among the 2020 contenders, according to totals the candidates have announced and campaign reports.The Vermont senator got almost 70 percent of his contributions from small-dollar donors of $200 or less, according to his report filed Monday with the Federal Election Commission, and almost all of the contributors gave $100 or less, his campaign said. Sanders also transferred $6 million from other accounts during the period.Sanders’s total roughly matched what he took in between January 1 and March 31, which had him leading the pack of Democratic candidates then in the race. But this time he’s trailing Pete Buttigieg, the mayor of South Bend, Indiana, former Vice President Joe Biden and Massachusetts Senator Elizabeth Warren.Sanders’s campaign sought Monday to differentiate his fundraising from that of his rivals, saying in an email to supporters that he’s backed by contributors that are teachers, students and workers at Walmart, while other Democrats are being funded by pharmaceutical executives, lobbyists, hedge-fund managers and “many of the people we are fighting against.”“The truth is, those folks out-raised us by a bit this time around,” the campaign said in the email. “But there’s a limit to the number of rich folks out there who can give large donations to beat us. They may have the big checks, but we have more people.”Warren’s Second Quarter Fundraising Puts Her in Third PlaceElizabeth Warren raised $19.1 million in the second quarter, putting her in third place behind Pete Buttigieg and Joe Biden among 2020 Democratic presidential candidates, according to totals the candidates have announced and campaign reports filed so far.Warren, who spent $10.5 million in the quarter, still had $19.8 million cash on hand as of June 30. Warren’s second-quarter funds came from 384,000 people, 67% of whom were small-dollar donors of $200 or less, according to her campaign and filing with the Federal Election Commission. Her fundraising surged from the $6 million the Massachusetts senator raised in the first quarter, when she spent $5.2 million.The senator’s intake compared with the surprise $24.8 million haul by Buttigieg, the South Bend, Indiana, mayor who began his campaign with little name recognition. Biden, the former vice president, raised $21.5 million since entering the race in late April.Biden Leads Close Contest in New HampshireA new survey of New Hampshire Democrats finds former Vice President Joe Biden in a close contest for the lead with Senators Kamala Harris and Elizabeth Warren.Biden had 20.8%, Harris had 17.5% and Warren had 16.7% in the poll conducted by St. Anselm College. All the results were within the margin of error of plus or minus 5.2 percentage points, meaning the three candidates are in a statistical tie.Behind them was South Bend, Indiana, Mayor Pete Buttigieg with 11.5%. Senator Bernie Sanders had 9.9% in New Hampshire, which he won in the 2016 primary.The poll suggests that the first-in-the-nation primary is wide open as Harris and Warren gain on front-runner Biden after strong debate performances.Former Representative Beto O’Rourke plummeted to 0%, according to WMUR, which reported on the survey.Gillibrand Fundraising Dipped to $2.3 MillionDemocratic presidential candidate Kirsten Gillibrand took in $2.3 million in the second quarter, down from $3 million in the first three months of the year, according to her filing with the Federal Election Commission.The New York senator, who has struggled in the polls since entering the race, ended June with $8.2 million in the bank after spending a total of $4.2 million. In addition to the money she’s raised for her presidential bid, she transferred $9.6 million from her Senate campaign in the first quarter.Gillibrand’s campaign said in an email that 65% of its online donors identified as women. The campaign said it is still on pace to hit the 130,000 donors needed to qualify for the third set of debates in September. -- Bill Allison and Mark NiquetteJulian Castro Raises $2.8M in Second QuarterFormer Housing and Urban Development Secretary Julian Castro, hoping to emerge in the crowded 2020 Democratic presidential field after a strong debate performance last month, reported raising $2.8 million during the second quarter -- more than double the $1.1 million he raised in the first three months of the year.That still puts him well behind the Democrats who have announced their second-quarter totals so far: South Bend, Indiana Mayor Pete Buttigieg at $24.8 million and former Vice President Joe Biden at $21.5 million.Castro’s filing with the Federal Election Commission showed that almost 75% of his contributions came from donors giving $200 or less. He reported $1.1 million in the bank as of June 30. Monday is the deadline for presidential candidates and committees to report their second-quarter fundraising and spending. -- Bill AllisonTrump, RNC Raise $108M in Second QuarterPresident Donald Trump’s re-election campaign and the Republican National Committee raised $108 million and have $123.7 million cash on hand, according to revised figures announced Monday. That’s more than the top five Democratic campaigns combined.“Yet another record-shattering fundraising haul gives us a major advantage over the crowded field of Democrats as the RNC continues investing in our world-class field program and growing our incredible grassroots army,” RNC Chairwoman Ronna McDaniel said.Trump’s campaign committee and two joint fundraising vehicles, Trump Victory and Trump Make America Great Again, raised a combined $56.7 million, and ended June with $80.2 million in the bank. The RNC brought in $51.3 million, preliminary numbers showed, with $43.5 million in the bank.The top five Democrats running to replace Trump -- former Vice President Joe Biden, Senators Kamala Harris, Bernie Sanders and Elizabeth Warren and South Bend, Indiana, Mayor Pete Buttigieg raised a combined $95.4 million so far.Candidates must officially report second-quarter fundraising totals to the Federal Election Commission on Monday. Campaigns voluntarily announce the amounts they raised ahead of the deadline as a demonstration of the extent of support.Last week, the Trump campaign announced fundraising figures of $105 million for the second quarter and $100 million cash on hand.Trump’s campaign had over 957,000 individual donations, of which 98% were $200 or less, with an average donation of $41.48. -- Bill AllisonDemocrats Support Work Stop by Amazon WorkersDemocratic presidential candidates are supporting a work stoppage by Amazon warehouse workers in Minnesota who are protesting working conditions during the online retailing giant’s Prime Day sale.“I fully support Amazon workers’ Prime Day strike,” tweeted Elizabeth Warren, a Massachusetts senator who has proposed breaking up Amazon. “Their fight for safe and reliable jobs is another reminder that we must come together to hold big corporations accountable.”Julian Castro, a former Housing and Urban Development secretary from Texas, also took to Twitter to express solidarity. “A company worth $1 trillion can absolutely afford to provide reasonable conditions for its employees,” he wrote.Vermont Senator Bernie Sanders, who has co-sponsored legislation that would tax Amazon, Walmart Inc. and other big employers to compensate for the federal benefits received by their workers, also jumped in.After the bill was introduced last year, Amazon announced that it would raise its minimum wage to $15 an hour.“A higher wage is only one component of the fight for workers’ rights,” Sanders wrote Monday. “Amazon workers deserve safe working conditions, fair scheduling, and reasonable production demands.”Workers at Amazon’s Shakopee, Minnesota, warehouse -- one of 100 sorting and fulfillment centers it operates nationally -- planned to walk off the job Monday on one the company’s busiest days. Amazon has become a frequent target of Democratic candidates, who have used it as an emblem of income inequality. -- Gregory KorteTrump Crushes Democratic Contenders on TwitterRetweets are not endorsements, and neither are Twitter followers. But if they were, President Donald Trump would be winning the Twitter primary.Nineteen percent of adult Twitter users in the U.S. follow @realDonaldTrump on Twitter, compared to 14% who follow one or more of his Democratic rivals, according to a new analysis by the Pew Research Center.Perhaps not surprisingly, more Republicans (31%) follow Trump than Democrats (13%). And those who follow Trump on Twitter are more likely to approve of his job performance (54% approval) than those who don’t (24%).One defining characteristic of Trump’s tweets is that he often uses the social media platform to make inflammatory or controversial statements. Over the weekend and into Monday, for example, he let loose a torrent of posts going after four Democratic lawmakers of color, at one point suggesting that the women, all but one of whom was born in the U.S., should “go back and help fix the totally broken and crime infested places from which they came.”The Pew analysis is based on a representative sample of U.S.-based Twitter users and doesn’t include overseas, spam or bot accounts. Trump has 61.9 million Twitter followers in all. The top candidate for the Democratic nomination, Vermont Senator Bernie Sanders, has 9.4 million. -- Greg KorteDemocratic Field Turns Out for Iowa AARP ForumsNineteen Democratic presidential candidates descend on Iowa this week for five days of forums hosted by the AARP and the Des Moines Register.“Older voters turn out in force in every election, so any candidate who wants to win in 2020 needs to focus on soaring prescription drug prices and other issues they care about,” John Hishta, senior vice president of campaigns for the lobbying group for older Americans, said in a statement.Monday: former Vice President Joe Biden, Senators Cory Booker and Amy Klobuchar and former Colorado Governor John Hickenlooper in Des Moines.Tuesday: Senators Kirsten Gillibrand and Kamala Harris, and former HUD secretary Julian Castro in Davenport.Wednesday: Representatives Tim Ryan and Tulsi Gabbard, and Senator Michael Bennet in Cedar Rapids.Friday: Senator Elizabeth Warren, author Marianne Williamson, former Representative Beto O’Rourke and tech entrepreneur Andrew Yang in Sioux City.Saturday: Senator Bernie Sanders, South Bend Mayor Pete Buttigieg, Montana Governor Steve Bullock and New York City Mayor Bill de Blasio in Council Bluffs.\-- Tyler PagerO’Rourke Reveals His Family Owned SlavesDemocratic presidential candidate Beto O’Rourke, who’s said he supports studying reparations for African Americans as a means of addressing the legacy of slavery and legal discrimination, now says the issue has become personal. His ancestors include slave owners.In a new Medium essay, O’Rourke said his great-great-great grandfather Andrew Cowan Jasper, in the 1850s owned two women named Rosa and Eliza, according to documents he was recently given. Another ancestor, Frederick Williams, “most likely” owned slaves in the 1860s, O’Rourke said, adding that his wife, Amy, is also a descendant of a slave owner.“Something that we’ve been thinking about and talking about in town hall meetings and out on the campaign -- the legacy of slavery in the United States -- now has a much more personal connection,” the former U.S. representative from El Paso, Texas, said in the post dated Sunday.The revelation follows an NBC News report citing U.S. Census records that found Senate Majority Leader Mitch McConnell is also a descendant of slave owners. McConnell said he opposes government reparations because slavery “happened 150 years ago” and nobody living today is responsible.O’Rourke looks at the situation differently. “They were able to build wealth on the backs and off the sweat of others,” and those benefits ultimately passed to O’Rourke and his own children, he said. -- Terrence DoppSanders, Biden Intensify Fight Over Health Care (6 a.m.)Democrats are headed into a week of sparring over health care as two leading presidential contenders prepare to intensify their fight over the issue.On Monday, front-runner Joe Biden will unveil a plan that relies heavily on defending the Affordable Care Act enacted in 2010 when he was vice president. It would give Americans the choice of a Medicare-like, public option for insurance while increasing the value of tax credits, lowering the cap on the cost of insurance and offering coverage to 4.9 million Americans in states that haven’t expanded Medicaid under Obamacare. the proposal would cost an estimated $750 billion in its first decade.Vermont Senator Bernie Sanders, who champions a “Medicare for All” government-run insurance system, plans a Wednesday speech in Washington to “confront the Democratic opponents of Medicare for All and directly challenge the insurance and drug industry.”After months of maintaining a steady grip on second place behind Biden in polls, Sanders has slid to third or fourth in some surveys, and his advisers have encouraged him to take on Biden more directly.Biden, seeking to move past missteps in the past few weeks, has become increasingly aggressive in warning that Medicare for All – also supported by two other top rivals, Senators Kamala Harris and Elizabeth Warren – would mean giving up on the hard-fought gains of Obamacare and starting from scratch.“I admire the rest of the field, from Bernie to Elizabeth to Kamala who want, you know, Medicare for All, but let me tell you, I think one of the most significant things we’ve done in our administration is pass the Affordable Care Act,” Biden said Saturday in New Hampshire. “I don’t know why we’d get rid of what in fact is working and move to something totally new.”Biden also highlighted over the weekend that Medicare for All would need to be funded with tax increases for middle-income Americans, something that Sanders openly acknowledges. But Sanders maintains that his plan would ultimately save consumers money because they’d no longer have to pay other costs.“Obviously what Biden was doing is what the insurance companies and the pharmaceutical industries, Republicans, do: ignoring the fact that people will save money on their health care,” Sanders said in an interview with the New York Times published Sunday. “They will no longer have to pay premiums or out-of-pocket expenses. They will no longer have high deductibles and high co-payments.” -- Jennifer EpsteinCory Booker Unveils Health Care PlanSenator Cory Booker rolled out a plan Monday to expand Medicaid long-term care services to those with assets up to $200,000 and income as high as 300% of the federal poverty level.People above those thresholds would also be allowed to buy into the program, an initiative aimed at allowing every American to live at home while aging, according to a white paper from his presidential campaign.The proposal, which Booker is set to discuss at an AARP forum in Des Moines, Iowa, on Monday, would include raising Medicaid funding for direct care workers and paying them at least $15 per hour.“In one of the richest nations in the world, no person should ever go broke or have to quit their job to afford long-term care or to take care of a loved one,” Booker said.Health care is a focal point of the Democratic policy debate as candidates clash over bigger ideas like Medicare for all and offering a “public option” for insurance, both of with Booker has endorsed as ways to expand coverage. -- Sahil KapurComing Up This Week:Nineteen of the two dozen or so Democratic candidates will participate in AARP’s five forums in Iowa between Monday and Saturday.The Tuesday event in Davenport will feature Senators Kirsten Gillibrand and Kamala Harris, and former HUD secretary Julian Castro.The Wednesday event in Cedar Rapids will feature Representatives Tim Ryan and Tulsi Gabbard, and Senator Michael Bennet.The Friday event in Sioux City will feature Senator Elizabeth Warren, author Marianne Williamson, former Representative Beto O’Rourke and tech entrepreneur Andrew Yang.The Saturday event in Council Bluffs will feature Senator Bernie Sanders, South Bend Mayor Pete Buttigieg, Montana Governor Steve Bullock and New York City Mayor Bill de Blasio.\--With assistance from Sahil Kapur, Jennifer Epstein, Terrence Dopp, Tyler Pager, Gregory Korte and Bill Allison.To contact the reporters on this story: Mark Niquette in Columbus at firstname.lastname@example.org;Bill Allison in Washington DC at email@example.comTo contact the editors responsible for this story: Wendy Benjaminson at firstname.lastname@example.org, Sara Forden, John HarneyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Nutrien Ltd. (TSX:NTR)(NYSE:NTR) and another Canadian market leader deserve to be on your TFSA radar today. Here's why.
Showdown! Both Toronto-Dominion Bank (TSX:TD)(NYSE:TD) and Bank of Montreal (TSX:BMO)(NYSE:BMO) are excellent stocks, but only one is a buy today.
Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of...
(Bloomberg) -- With lawmakers on summer recess and the Bank of Canada’s latest decision in the can, attention turns to the economic numbers for signs of whether the recent momentum will continue, and what it might mean for interest rates.“Recent Canadian developments stand in sharp contrast to events in much of the rest of the world,” Scotiabank economists including Jean-François Perrault wrote in a July 12 research report. “Whereas U.S. growth is clearly decelerating, Canadian growth is on an upswing, with recent indicators pointing to a very sharp rebound from a somewhat sluggish start to the year.”In a data-packed week, these are the most important releases to watch:InflationStatistics Canada releases Consumer Price Index data for June on Wednesday. Economists are predicting a 0.3% decrease in the month-over-month reading, and a deceleration in the annual print to 2%, mostly on a significant drop in gasoline prices. In May, the annual rate hit 2.4%, a seven-month peak, while core measures, which strip out many of the most volatile items, reached the highest since 2012. Those core measures are forecast to remain at about 2.1%, and so long as underlying inflation remains relatively close the Bank of Canada’s 2% target, there’s less reason for it to change its wait-and-see approach to interest rates.Retail SalesTwo days later, on Friday, the federal statistics agency releases May retail sales numbers. After muted gains the month before, economists see stronger contributions from NBA playoff spending, as well as home furnishings and building materials as housing continues to strengthen. With the labor market still strong and borrowing costs holding steady, look for the Canadian consumer to continue propping up the economy. The median forecast in a Bloomberg survey is for retail sales to rise 0.3% in May, and the ex-autos number to come in even higher, at 0.4%.Manufacturing SalesThey will likely be overshadowed by the inflation data, but manufacturing numbers out Wednesday should signal an improvement after the 0.6% decrease in the prior month. Analysts at Toronto-Dominion Bank are looking for a 1.6% gain in the month on transportation products including motor vehicles and aerospace equipment. The median forecast in a Bloomberg survey is for a 2% gain.HousingHousing numbers will come increasingly into focus, given the role residential investment is playing in the central bank’s rebound narrative. On Monday, the Canadian Real Estate Association reports existing home sales for June, while the Teranet Home Price Index comes out Thursday. The country’s housing market has looked much better in the second quarter so far -- starts had a massive gain last month -- and this week’s data points, the last for the period -- should continue the trend.\--With assistance from Erik Hertzberg.To contact the reporter on this story: Chris Fournier in Ottawa at email@example.comTo contact the editors responsible for this story: Theophilos Argitis at firstname.lastname@example.org, Stephen WicaryFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Looking to retire early? Consider Toronto-Dominion Bank (TSX:TD)(NYSE:TD), Open Text Corp. (TSX:OTEX)(NASDAQ:OTEX) and this other stock for your portfolio.
Some are worried that bank stocks, including Toronto-Dominion Bank (TSX:TD), might suffer from a financial collapse. Should you add the stock to your TFSA?
Toronto-Dominion Bank (TSX:TD)(NYSE:TD) and one other undervalued dividend-growth stock to stash in your TFSA mini-pension fund.
(Bloomberg) -- The Bank of Canada’s firmly entrenched holding pattern on rates will be put to the test by the country’s ability to withstand a deceleration in the world’s largest economy and its biggest trading partner.The Ottawa-based central bank left the overnight rate unchanged at 1.75% on Wednesday for a sixth straight decision, and indicated it’s in no rush to introduce easier policy, despite a mounting drag from the U.S.-China trade war and a widely-anticipated interest rate reduction by the Federal Reserve later this month.Canada doesn’t need to follow the Fed in large part because its growth will be superior to that of the U.S. without additional monetary accommodation, according to policy makers. The central bank forecasts a pick-up of 1.9% growth for the Canadian economy in 2020, from 1.3% this year, and for U.S. activity to tail off to 1.7%, from 2.5%.That might sound like divergence, but “in fact, it’s a process of convergence,” Carolyn Wilkins, Bank of Canada senior deputy governor, said in a press conference.Return to SynchronicityDeep trade linkages have ensured a high degree of historical synchronicity between Canadian and American economic performance, with episodes of decoupling arising over the past decade due to major commodity price shocks and differences in the timing of fiscal stimulus. Indeed, the consensus among economists surveyed by Bloomberg is for both economies to expand by 1.8% in 2020.Canadian growth is supported by a monetary policy stance that’s currently more stimulative than in the U.S., while domestic-centric headwinds related to housing and the energy sector look to be ebbing.“It’s entirely consistent for Canada, in this circumstance, to grow just a little bit faster than the U.S. as we adjust towards potential from below and they adjust from above,” said Wilkins.That’s an apt diagnosis, according to Toronto-Dominion Bank senior economist Brian DePratto, who sees the central bank on hold through 2020. If anything, the Bank of Canada is “setting a low bar” for the near-term growth outlook, he said, which will help bolster the case for keeping rates on hold.“With easing going on south of the border and the bleed through in funding conditions, that does sort of prime things for a bit of a return to that growth pattern with housing and consumption,” he said. “And then you’ve got the ‘human stimulus’ argument -- Canada’s continuing to have healthy population growth, which translates into labor force and job gains.”Most economists who track the Bank of Canada also expect rates to be on hold through 2020. That sets Governor Stephen Poloz up for a poetic pause. If the current holding pattern on rates lasts through the first half of 2020, he’ll be poised to end his seven-year term just as he started it: with more than a year and a half of unchanged policy.But traders aren’t completely on board with the message. A 25 basis point rate cut isn’t fully priced in over the next year, though the implied odds of an ease roughly doubled to 80% on Wednesday in the wake of the central bank’s decision in concert with dovish remarks from Fed Chair Jerome Powell.Story Doesn’t HoldA handful of economists share the market’s doubts.Canada has imported easier financial conditions in the form of lower bond yields without matching the extent of the dovish turn taken by central banks globally. But the nation hasn’t been a complete free-rider on this trend, according to Avery Shenfeld, chief economist at Canadian Imperial Bank of Commerce.Five-year bond yields -- which tend to move along with five-year fixed mortgage rates, the dominant product in the Canadian real estate market -- have some degree of Bank of Canada easing baked into them, which will reverse if the central bank fails to deliver.“It’s reasonable, for now, for the Bank of Canada to not give too many clues one way or the other on interest rates, as they had this wisdom of not hiking as much as the Fed,” Shenfeld said. “But there will be enough of a global slowing that the impact on Canada from that, coupled with the threat of Canadian dollar appreciation if the Bank of Canada stays on hold forever, will be enough to prompt a token ease.”CIBC expects a cut in the second quarter of 2020.Macquarie Capital economist David Doyle agrees, pointing to a nasty shock awaiting Canadians poised to renew mortgages next year, a stark contrast to the limited stress on those doing so this year.“It’s funny to me that the BoC, in their growth model, indicates a big part of the inflection in growth you’re getting is coming from residential investment, and also have consumption relatively stable,” he said. “That strikes me as odd because of that rate reset headwind -- which was specifically brought up as an element that’s supporting activity in the current year -- becomes a wall of a headwind as you move into 2020.”Disappointing growth in 2020 will elicit rate cuts starting in the middle of the year, concludes Doyle. That’s because this time, unlike in 2018, Canada won’t be able to ride the coattails of a booming economy stateside.To contact the reporter on this story: Luke Kawa in New York at email@example.comTo contact the editors responsible for this story: Jeremy Herron at firstname.lastname@example.org, Chris Fournier, Stephen WicaryFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Toronto-Dominion Bank (TSX:TD)(NYSE:TD) and National Bank of Canada (TSX:NA) are both interesting picks for income- and growth-seeking investors alike.
Toronto-Dominion Bank (TSX:TD)(NYSE:TD) offers newcomers to the TSX an often elusive element in dividend investing.
(Bloomberg) -- Canadian housing starts surged to the highest level in more than a year in June, led by construction of multiple-family dwellings such as condos and row houses.In another sign of recovery for the nation’s real estate market, builders started work on an annualized 245,657 units last month, a jump of 25% from May, Canada Mortgage and Housing Corp. said Tuesday -- easily topping the median forecast of 208,600 units in a Bloomberg survey. Multiple unit starts rose 31% on the month to 189,200, CMHC said.Gains were “evenly spread out across the country,” Jocelyn Paquet, an economist at National Bank Financial in Montreal, wrote in a note to clients, adding all 10 provinces registered increases, something that hasn’t happened since 1996.The report is in line with other recent data that suggests the nation’s housing sector is stabilizing from a recent slump, easing concern that more expensive markets like Toronto and Vancouver were poised for a major correction. On a quarterly basis, starts rose 20% in the April to June period, rebounding from a 14% decline in the first three months of 2019, meaning residential construction probably provided a positive contribution to second-quarter growth, Paquet said.The increase in national housing starts was “primarily due to higher trending row and apartment starts in urban areas,“ Bob Dugan, CMHC’s chief economist, said in a statement. Home building was 36% higher in Ontario, and up 12% each in British Columbia and Quebec, the agency reported. It surged 43% in Alberta.“Robust population growth, strong labor markets, and past gains in pre-construction sales” are supporting starts, according to Rishi Sondhi, an economist at Toronto-Dominion Bank. He said, however, that starts are moving gradually lower on a “trend basis,” with the 6-month average well down from its late 2017 peak.“We anticipate some further moderation, as starts move closer to a more fundamentally supported level of around 200k,” Sondhi said in a note.In a separate release Tuesday, Statistics Canada reported residential building permits fell 17% in May. More housing data is in the offing, with Statistics Canada’s New Housing Price Index for May out Thursday and Canadian Real Estate Association data on existing home sales due Monday.(Updates with economist’s comment in 3rd paragraph, details throughout.)\--With assistance from Chris Middleton.To contact the reporter on this story: Chris Fournier in Ottawa at email@example.comTo contact the editors responsible for this story: Theophilos Argitis at firstname.lastname@example.org, Stephen WicaryFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.