New house prices up in April: StatsCan

OTTAWA – Statistics Canada says its new housing price index rose 0.2 per cent in April, following a 0.1 per cent increase in March and similar gains over the last 12 months.

The agency says Calgary was the top contributor to the national advance for the third consecutive month, as prices for new homes rose 0.5 per cent in April.

“Builders reported that higher material and labour costs as well as market conditions were the main reasons for higher prices,” Statistics Canada said.

The largest monthly price advance occurred in St. John’s, N.L., where prices rose 1.0 per cent, following eight consecutive months of little or no change.

“This was the largest price movement in St. John’s since November 2010, when new housing prices rose 4.3 per cent. Since then, prices have been relatively flat, despite a few modest gains over the summer of 2012.”

Hamilton followed closely, with prices for new homes rising by 0.8 per cent — the largest month-to-month increase in that area since October 2012.

Prices rose 0.6 per cent in Winnipeg and 0.3 per cent in Saskatoon and 0.1 per cent higher in Quebec City, Toronto-Oshawa, Ottawa-Gatineau, Vancouver and Victoria.

Prices were 0.1 per cent lower from March to April in Montreal and the region including the New Brunswick cities of Saint John, Fredericton and Moncton.

“Builders in the region of Saint John, Fredericton and Moncton reported lower prices as a result of market conditions, while builders in Montréal lowered prices to finalize sales,” Statistics Canada said.

Builders reported that prices were

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Children don’t inherit parent’s debt: experts

MONTREAL – The death of a parent can sometimes mean financial turmoil for surviving relatives, but advisors say that lingering debts aren’t the responsibility of the adult children in the family.

“There is no liability for a child to take on the debts of the parents,” said lawyer Murray Morrison, who specializes in insolvency and practices in the Vancouver area.

If the parents die in debt, the first place to turn is their estate which can go bankrupt, he said.

But a bankrupt estate also means there won’t be an inheritance for the family.

“Kids do not come first,” he said. “Under the law, the debts have to be paid before anybody gets a nickel.”

So the surviving children can choose to ignore their parents’ debt and let creditors sue and garnishee the deceased mom or dad’s bank account, or they can spend what money is in the estate to bankrupt it, Morrison said.

He said surviving children should not “try to pay the bills without thinking about it” and also recommended they seek legal advice.

Debts aren’t transferred by virtue of marriage or death — not without your signature — even though spouses and children may feel they should clear up any outstanding money owed, said Margaret Johnson, president of Solutions Credit Counselling Service.

“A lot of people want to do the right thing,” Johnson said. “The right thing is to pay debts that are yours. If they’re not yours, don’t pay them.”

For example, if dad passes away but has a credit card bill and an unpaid

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Condo market vulnerable to correction: BoC

Condo market vulnerable to correction: BoC

A condominium under construction is shown in Toronto on Saturday, February 4, 2012. The Bank of Canada is issuing among its starkest warnings to date about the country’s housing market, again taking special aim at Toronto’s condominium sector. THE CANADIAN PRESS/Pawel Dwulit

OTTAWA – An overbuilt and overpriced condominium market is posing a risk to Canadian households, banks and the economy in general, the Bank of Canada warned Thursday in its latest review of the health of the country’s financial system.

The central bank particularly singles out the Toronto condo market, which it notes continues to carry a high level of unsold high-rise units in both pre-construction and under-construction phases.

It urges policy-makers to continue monitoring developments in the sector, saying it is “working closely” with federal authorities to maintain an ongoing assessment of risks.

Overall, the bank says it believes both global and Canada financial conditions have improved somewhat despite the subdued pace of the economic recovery.

In Canada, the growth in household credit has continued to slow and has fallen broadly in line with growth in disposable income. As well, overall activity in the housing market has moderated.

But the central bank is still worried about the housing market, and particularly condos in Toronto.

“If the upcoming supply of units is not absorbed by demand as they are completed over the next 12 to 30 months, the supply-demand discrepancy would become more apparent, increasing the risk of

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New forms to track potential tax cheats

OTTAWA – The federal government is bringing in new rules to monitor people who may be hiding property offshore.

Revenue Minister Gail Shea says a tougher foreign income verification statement will help fight tax cheating.

Starting with the 2013 taxation year, Canadians who hold foreign property worth $100,000 or more will be required to provide additional, detailed information to the Canada Revenue Agency.

Holders of foreign properties will have to provide the name of the institution that controls the overseas funds, the country to which the property relates and the income generated from the property.

The revenue agency will use the new information to ensure compliance with tax laws.

Shea says the information will help the taxman track cheaters.

“Our government is committed to combating tax evasion and getting tough on tax cheats,” she said.

The Certified General Accountants Association of Canada welcomed Shea’s announcement.

“We are pleased to see the government taking action on this important issue,” said Carole Presseault, the association’s vice-president of government and regulatory affairs.

“Increased reporting requirements of large offshore assets will help to ensure that all Canadians are operating on a level playing field when it comes to their taxes.”

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Stock Drop an Overreaction: Morgan Stanley CEO

Morgan Stanley Chairman and CEO James Gorman told CNBC on Friday a new batch dump on Federal Reserve finish speak is an overreaction and investors shouldn’t let marketplace fear take over.

“I consider that over a subsequent few days we see a small some-more fortitude in equities,” he pronounced in a “Squawk Box” interview.

(Read More: Tepper Likes a Taper, Says Stocks Are Strong)

The liberation in a U.S. economy is for real, and Fed Chairman Ben Bernanke’s comments about a probable scale behind in quantitative easing after this year is an confirmation of that, he said.

“Chairman Bernanke, we think, has finished a extensive pursuit and is weening a nation off as we’re saying mercantile recovery,” Gorman said. “That a marketplace would be changeable during this transition, given what we’ve been by a final 5 or 6 years, is not startling to me.”

(Read More: Buy-and-Hold Billionaire: Turbulence Won’t Last)

“This is not a time when fear should take over,” he continued. “This is a final in a array of hurdles that a markets have had to go by as they work their approach behind to a some-more normal environment.”

Further bolstering Morgan Stanley’s resources government business, Gorman pronounced a association has perceived all regulatory approvals to acquire a remaining 35 percent seductiveness in Morgan Stanley Smith Barney Holdings from Citigroup.

“This is something we’ve been operative on

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Bulls and Bears Face Off on Market’s Next Move

On to a bears:

Doug Kass of Seabreeze Partners told CNBC that QE has done a markets “a heroin addict.” “Now,” he added, “with this tapering forward of a market, it’s shortly to turn a methadone addict. The problem is, too frequently, methadone addicts tumble behind into addiction.”

Kass pronounced that QE was a “wrong antidote” to what ails a economy.

“I don’t trust that a economy is clever adequate to means itself unless we have this heroin, or easy money, for some time to come,” he said. “And what concerns me about a marketplace essentially is that if a batch marketplace continues to drop, it’s roughly self-fulfilling, trickle-down, no longer works.”

And from a technical standpoint, there’s a box for bonds to conduct 3 percent to 5 percent lower, Oppenheimer’s Carter Worth pronounced Thursday.

“Once you’re down some-more than 5 percent, story shows we don’t stop there,” he said. “You typically go down utterly a bit more.”

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Earnings Season Looks Like a Train Wreck

But some-more broadly, Wall Street accord expects small distinction expansion in SP 500 companies for a second quarter.

(Read More: Why Bullish BofA Thinks Market Gains Might Be Over)

That could be bad news for stocks, deliberation that gain per share collectively has closely mirrored a 140 percent expansion in a batch marketplace index given a Mar 2009 lows.

All a marketplace speak about what a Federal Reserve has in store, Levkovich said, has come “almost but spending any time looking during gain estimates or trends reduction than a month before second-quarter formula are released.”

“Such a suspicion routine seems ill-founded given gain matter a many for equities, in a opinion, and there is comparatively strong statistical justification to behind adult that contention,” he said. “In this respect, we have been a tad repelled by a swell in negative-to-positive pre-announcement trends that make 2009’s swell seem reduction worrisome in retrospect.”

Indeed, a prosaic gain opinion suggests a prosaic marketplace or worse, quite after a green greeting following final week’s attestation from Fed Chairman Ben Bernanke that a executive bank’s $85 billion a month liquidity module could hang adult in 2014.

(Read More: Taper Tipoff? Bernanke Hints Easing End Is Nearing)

For his part, Levkovich is no alarmist. His group espouses what it calls a “Raging Bull” speculation that sees a strongly certain long-term marketplace outlook.

But his difference do fit with

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Mobius: China’s Problems as Big as US Subprime

“We have to ask what a effect is, what will occur as a result, and a unfolding will be very, really opposite in China, simply since a banks are tranquil by a government, so they will not be authorised to go bankrupt.”

As a result, Mobius pronounced a liquidity problems faced by Bear Stearns, Merrill Lynch and Lehman Brothers during a tallness of a 2008 predicament won’t occur in China.

Mobius manages some $53 billion in rising marketplace supports and has some-more income invested in China than in any other market.

(Read More: Goldman Joins Bandwagon, Downgrades China)

He pronounced China has $3 trillion in unfamiliar pot that can be used to recapitalize a banks.

But not everybody agrees that China can make it by a stream problems.

Gordon Chang, a author of “The Coming Collapse of China” told CNBC on Monday a credit break was a critical problem and could lead to a “catastrophic failure” in a banking complement in a subsequent 6 months.

“This is not so most as a liquidity predicament as a debt crisis,” he told CNBC on Monday.

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Buy Treasurys, as Bernanke Is All Talk: Bond Pros

In “Godfather III,” a Don of a mobster family, Michael Corleone, famously said, “Just when we suspicion we was out, they lift me behind in.”

You might hear those same difference entrance out of a bureau of Federal Reserve Chairman Ben Bernanke after this year when he is forced to backtrack on his skeleton to revoke bond shopping as a economy falters.

Despite a destruction final week, a best event in markets might be to buy U.S. Treasurys as acceleration stays malnutritioned and a economy continues to baggy along, according to a dual most-notable bond investors in a world.

“The one place that you’re expected to make income in a subsequent several weeks, maybe months, is actually—believe it or not—the many hated item category on a planet, long-term supervision bonds,” pronounced DoubLine’s Jeff Gundlach, in an talk only before a Fed proclamation final Thursday, when he accurately likely Bernanke would vigilance a tapering of bond purchases this year.

(Read More: Bond Fund Outflows Hit Record Level on Tapering Fears)

“When mercantile information gets weaker—which it substantially will during some point—then they will be articulate about bond purchases again,” pronounced Gundlach, who manages some-more than $55 billion. “There’s no pointer of acceleration anywhere.”

The other bond king, Bill Gross, echoed a thoughts of Gundlach, only after a Fed’s matter was expelled final week.

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Consumer certainty during 5-year high

consumer certainty credit label wallet

Consumer certainty strike a five-year high in June.

A magnitude of consumer certainty rose to a tip turn in some-more than 5 years in June, as those surveyed see softened financial times ahead.

The index from a business investigate organisation The Conference Board rose to 81.4, after a third true month of gains. Readings for consumers’ perspective of both stream conditions and a opinion for 6 months from now also improved.

The consult also found consumers awaiting their possess financial conditions to urge and for jobs to be some-more plentiful in a month ahead, nonetheless they were somewhat reduction confident about stock prices.

Lynn Franco, executive of mercantile indicators during The Conference Board, pronounced a softened outlook, joined with a softened perspective of stream conditions, suggests that a gait of altogether mercantile expansion is “unlikely to delayed in a brief term, and might even tolerably collect up.”

Related: 2014 –When a economy finally takes off

Strong consumer certainty in a economy can coax them to spend more, generally on large sheet equipment such as cars and homes. Both a housing market and car sales have been posting large year-over-year gains so distant this year, providing critical boosts to a economy. To tip of page

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