TSX drops sharply as GDP pace slows
The main index of the Toronto Stock Exchange fell Friday to end the session almost 2 per cent lower. The decline came on the day that GDP figures showed a slowing of the Canadian economy in August, however the third quarter is on target to show growth. The overall picture for the month was also positive ending almost 2 per cent higher than it started.
Wall Street saw smaller losses but still closed the session lower. Along with Asian and European markets, which were mixed, New York reported a stronger October for equities.
The S&P/TSX Composite Index closed down 262.7 (1.90 per cent)
The Dow Jones closed down 92.26 (0.52 per cent)
Oil is trending higher (Brent $49.42, WTI $46.40 at 4.20pm)
Gold is trending lower (1141.40 at 4.20pm)
The loonie is valued at U$0.7652
Economy grew in August, but only just
Real gross domestic product edged up 0.1 per cent in August, following increases of 0.4 per cent in June and 0.3 per cent in July. The growth in August was mainly a result of gains in manufacturing, mining, quarrying, and oil and gas extraction and retail trade. The figures from Statistics Canada reveal that the output of goods-producing industries grew 0.3 per cent in August with service-producing industries up 0.1 per cent. Wholesale trade, finance and insurance were down; the public sector and construction were unchanged.
Ottawa in surplus despite August deficit
Figures from Finance Canada show that Ottawa ran a deficit of $2.3 billion in August, the first time in the current fiscal year. However the year’s surplus is $2.8 billion, double that predicted in April’s federal budget. The earlier forecasts were based on economic growth which may prove to be above the actual figures for the year according to analysts.
Canada-exclusive carbon tax would be “political suicide” says Husky boss
The chief executive of Husky Energy said Friday that if Canada was to introduce a carbon tax if the US does not. Asim Ghosh warned political leaders that to go it alone would be a mistake to make such a move which he told Bloomberg would disadvantage the economy.
His comments came as the company announced its results for the third quarter and announced that there are to be additional job cuts. The firm has already shed 1,120 contractors and 280 full-time employees but announced Friday that "Additional workforce adjustments will be undertaken as required in line with the business plan.” The firm reported a third quarter adjusted net loss of $101 million excluding charges and write-downs. The CBC reports that the net loss was $4.1 billion including those extra costs.