Canada swings to $885M trade deficit

Merchandise exports declined three per cent and imports rose 1.9 in October, as Canada's trade balance slipped back into deficit.

Statistics Canada reports the country's trade balance with the world fell into a deficit of $885 million in October from a surplus of $1 billion in September.

The agency says exports decreased to $38.4 billion in October, as both prices and volumes fell.

Industrial goods and materials, and energy products sectors led the decline, while automotive products was the only sector to record a gain during the month.

Imports reached a record high of $39.3 billion, as volumes increased 1.3 per cent, led by machinery and equipment, followed by energy and automotive products.

Imports from the United States rose three per cent to $24.5 billion, their highest value since October 2008, while exports fell 0.9 per cent to $27.6 billion.

As a result, Canada's trade surplus with the United States narrowed to $3.1 billion in October from $4.1 billion in September.

Exports to countries other than the United States fell 7.9 per cent to $10.8 billion. Imports from countries other than the United States edged up 0.1 per cent to $14.7 billion.

Canada's trade deficit with countries other than the United States increased to $4 billion in October from $3 billion.

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Security and trade tops for Toews, Napolitano chat

Public Safety Minister Vic Toews talked border security and trade at a Monday meeting with his counterpart, U.S. Secretary of Homeland Security Janet Napolitano.

Canada and the United States have been negotiating a perimeter security agreement, which the government says would enhance trade and security.

Toews and Napolitano reiterated the goals of the talks and said they're making progress, but that they aren't done yet.

Canadian ambassador to the U.S. Gary Doer sounded cautiously optimistic about the talks.

"You can't put your hands in the air until the puck's in the net. It's not in the net, but we're making great progress," Doer said.

'You can't put your hands in the air until the puck's in the net.'—Gary Doer, Canadian ambassador to the U.S.

"We also mentioned specifically the role that privacy commissioners would play, both in the United States and Canada, to ensure that information that is used is used appropriately," he said.

Napolitano said most Canadians would be surprised at how consistent the privacy environment is between Canada and the U.S.

The meeting also looked at the next generation of joint operations, she said, pointing to the example of putting law enforcement officials on each other's ships.

"We're looking at expanding that basic concept to other areas where we can do more by way of joint law enforcement operation, intelligence gathering … and joint policing, particularly along the border region," Napolitano said.

"Obviously these are areas that require a bit of fleshing out, but are evidence of our mutual intent that this border not be thickened, but that it be made more efficient."

They also announced an upcoming meeting between Prime Minister Stephen Harper and U.S. President Barack Obama this fall. No specific date was announced.

The talks are based on a joint declaration by Harper and Obama last February. They said the talks would look at addressing security threats early, making trade easier, integrating cross-border law enforcement, and improving critical infrastructure and cyber-security.

Brian Masse, NDP associate critic for the U.S.–Canada border, said the talks are happening in a vacuum, and letting the public submit comments on a website isn't enough of a dialogue. He also said there are no goals to measure against.

"How is it lowering wait times, how is it improving efficiency for the loss of Canadian privacy and the increased cost?" he said.

"We've seen them increase paperwork and other types of measures," he said, pointing to administrative fees for exporters and the requirement of a passport for Canadians travelling to the U.S. "There's a series of things that have been introduced over the years under the auspices of improving security."

Increased security over the past 10 years has slowed traffic crossing between the two countries, referred to as a thickening of the border.

Toews and Napolitano last met in Washington, D.C., in June.

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Bernanke Suggests Chance Of QE3, Triggers Renewed Risk Trade

Jul. 13 2011 - 1:13 pm | 84 views | 0 recommendations | Image by Getty Images via @daylife

Federal Reserve Chairman Ben Bernanke told lawmakers that further stimulus may be necessary if the U.S. economy fails to gain momentum in Washington Wednesday, triggering a midmorning rally that had the major averages up better than 1%.

The chairman’s remarks showed no departure from the minutes of the Federal Open Market Committee’s June meeting released Tuesday, which showed that members discussed further stimulus, but also mulled an exit strategy from the Fed’s extremely accommodative policy. That two-pronged approach – understandable given the economy’s recent slowdown – was glossed over Wednesday as the market seized on the chance of QE3 and eased the sting of recent weakness.

An hour after noon the Dow Jones industrial average was up 133 points to 12,580, the S&P 500 14 points to 1,328 and the Nasdaq 39 points to 2,821. Financial stocks were able participants in the march higher, with JPMorgan Chase and Citigroup up better than 2% apiece. The pair report earnings Thursday and Friday, respectively.

To John Richards, head of Americas strategy at RBS, QE3 is still unlikely even after a dismal June jobs report, but that can change. The economy needs “an immediate reversal in momentum,” to move further stimulus from the Fed off the table, says Richards, who still expects a more robust second half but is keeping an eye on data like gauges of manufacturing and auto production for signals on which direction the scale is tilting.

All Bernanke did Wednesday was leave the door open  to the possibility of QE3, and the market responded with “so you’re saying there’s a chance.” Where have we heard that before?

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Bernanke hits chance QE3, risk renewed trade triggers

Jul 13 2011-1: 13 pm | 84 Views | 0 Recommendations |  Image by Getty Images via @ Daylife

Federal Reserve Chairman Ben Bernanke told lawmakers, that further impetus may be required, if the US economy to win not dynamic in Washington, Wednesday, triggering a morning rally, the most important indexes to better than 1% was.

The Chairman comments showed no deviation of the Federal open market Committee June minutes Tuesday, which showed that members discussed further stimulus, but also an exit strategy from extremely accommodative fed policy published mulled wine. This two-pronged approach - understandable given the recent slowdown of the economy - was glossed over Wednesday as the market at the chance, QE3 seized and facilitates the sting of the recent weakness.

An hour after noon was the Dow Jones industrial average up 133 points to 12,580 that 14 points to 1,328 and the NASDAQ 39 points S & P 500 on 2,821. Financials were able, participants in the March with JPMorgan Chase and Citigroup to better than 2% higher per piece. The pair currency option transactions result Thursday and Friday, respectively.

John Richards, head of Americas strategy at RBS, QE3 is also after a dreary June jobs report still unlikely, but that can change. The economy needs to move further boost by the fed off the table, "an immediate reversal in momentum," says Richards, which still a robust second half expected is an eye on data as instruments of production and automatic production for signals on the direction tilt the scale.

All Bernanke has on Wednesday, the door was left open the possibility the QE3 and the market is reacting with "So you say, there is a chance." Where have we heard that before?

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