Morning update: Bank of Canada warns of destabilized economy as interest rates set to rise


Hello,

The Bank of Canada warns that high levels of household debt contracted over an extended period of low interest rates and a spree of real estate investment could destabilize the economy as rates begin to rise.

Canadians who have strained their finances to buy in the heated real estate market are heavily exposed to rising debt servicing costs, Bank of Canada Deputy Governor Paul Beaudry said on Tuesday in a speech on the stability of the financial system.

The risk of a housing market correction has also increased over the past year as investors swarmed the market in a speculative rush, he said, driving up house prices and exacerbating the problem of housing. affordability of housing in Canada. The average price of homes has jumped more than 30% since the start of the pandemic.

A house for sale on Euclid Street in Toronto is pictured on November 17, 2021. Fred Lum / The Globe and Mail.Fred Lum / The Globe and Mail

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Liberals focus on climate change and pandemic in Speech from the Throne

The Speech from the Throne issued a stern warning about the future of the planet as Governor General Mary Simon opened the 44th Parliament, describing a world “in danger” from climate change and urging lawmakers to move “from speech to action ”.

The plans of the Liberal minority government focused on limiting greenhouse gas emissions and underscored two other key campaign commitments – “bring the pandemic under control” and develop a “more resilient economy”. The speech often mentioned the economy, but made only one reference to inflation, which has caused the biggest price spike in nearly two decades.

In Darien Gap, migrants in Colombia remain on a perilous path despite Biden’s efforts to deter them

For months, Freddy Pestana Herrera watched migrants cross this roadless corner of northwest Colombia, their backs laden with bags and their eyes locked on a muddy, slippery path interspersed with tangles of roots and torrents of water. running water. These are the first stops of the Darien Gap, a wild and soggy region that separates South America from North America – and a popular destination for migrants seeking to travel to the United States by land. This year, 95,000 people made the trip, more than ever.

Migrants have to cross around 80 river crossings to get to the Panama border, then through a wild jungle. Now another barrier awaits them: the efforts of a US administration that has gone beyond its own borders to slow their path.

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ALSO ON OUR RADAR

British Columbia provides funding for families affected by flooding: British Columbia is providing $ 2,000 in emergency funding to thousands of families driven from their homes by floods and mudslides last week, as residents of southwestern BC brace for disaster. heavy rains again this week.

Across Canada, parents are rushing to reserve COVID-19 vaccines for children: With 2.9 million pediatric vaccines now in Canada, tens of thousands of parents are rushing to make an appointment. Demand was high at first, but it’s still unclear how many parents will vaccinate their children after the first swing.

The Rogers-Shaw deal is bad for competition, says rival: Rogers Communications Inc.’s $ 26 billion takeover of Shaw Communications Inc. would “dramatically reduce” competition and consumer choice for broadcasting services, rival Telus Corp said yesterday. to the Canadian telecommunications and broadcasting regulator.

Western aid workers in Afghanistan face an almost impossible task: After the United States and its allies withdrew their military presence from Afghanistan, taking embassy staff from around the world with them, international aid workers made the crucial decision to stay in the Taliban-controlled country to try to feed a starving population and to do what they can to protect the gains of the last 20 years.

The opposition demands the publication of documents on the licensed scientists: Federal opposition parties are pushing the Liberal government to release secret documents about the dismissal of scientists Xiangguo Qiu and her husband, Keding Cheng, from Canada’s Top Security Laboratory. The Globe and Mail reported that the RCMP are investigating whether the two scientists passed Canadian intellectual property on to China, including the Wuhan Institute of Virology, while working at the National Microbiology Laboratory in Winnipeg.


MORNING MARKETS

Markets await US data: Global stocks recovered lost ground on Wednesday as crude prices surged oil companies, but increasing COVID-19 cases in Europe, weaker economic sentiment in Germany and a slew of US data ahead of Thanksgiving were at the center of investor concerns. At around 5:30 a.m. ET, the UK FTSE 100 added 0.11 percent. The German DAX and the French CAC 40 fell by 0.35% and 0.32% respectively. In Asia, the Japanese Nikkei lost 1.58%. Hong Kong’s Hang Seng rose 0.14%. New York futures were down. The Canadian dollar was trading at 78.87 cents US.


WHAT EVERYONE IS TALKING

Cathal Kelly: “On Monday, Andrew Willis of the Globe announced that Rogers is not not open to someone who takes some of the Jays out of their business. The apparent leading candidate – himself … This is not a change of regime. It’s mixing money between the chequing account and the savings account. Whatever happens, Rogers (the company, the person, or a combination of the two) will remain responsible. It means more or less the same.

Eric Morse: “A semi-provocation is still a provocation. Think of our young people instead of the two Michael’s and ask yourself if the risk for them is worth it. As observers begin to wonder more and more if traveling to China is safe, we shouldn’t take the risk of shoveling Canadian athletes into the mouth of the wolf warrior. There should be a boycott indeed, but if Canada is to take this path, it must be all or nothing. “


TODAY’S EDITORIAL EVENT

Brian GableBrian Gable / The Globe and Mail


LIVE BETTER

Travel offers for travel now or in the new year

Black Friday and Cyber ​​Monday have traditionally been among the best times to book travel. The deals available are amazing and the travel dates are flexible. So if you are planning to book a trip soon or for the New Year, you will want to do so soon because these deals will not last.


MOMENT IN TIME: NOVEMBER 24, 1874

East Texas farm owner winding old barbed wire near Harleton, Texas, April 1939.Russell Lee / Library of Congress

A patent is issued for barbed wire

One of the great American myths is that the Winchester rifle, the locomotive and the telegraph “won” the West. The real story of what changed the United States is more mundane. It was barbed wire – which had been around for nearly a decade before it was successfully improved and patented by Joseph Glidden, a farmer from DeKalb, Ill., That day in 1874. Glidden got it how to mechanically create and produce a sharp metallic beard that was wedged between two twisted wires so that it would not slip. The beard could stab and cut like a knife if accidentally brushed against. The invention changed breeding – and property rights – almost overnight. Farmers and landowners loved it because it ended the need for expensive wooden fences. Cattle – or Native American tribes, who had lived on the American border for 15,000 years – could no longer roam the country freely. The cheap and easy to assemble fence killed cattle (and therefore cowboys) and buffalo migration. Indigenous peoples called it “the devil’s rope” because it helped set limits where there were none before. But its proliferation has locked the earth in at a rapid rate, and the mythical Wild West has been won – and done. Philippe the king


Read today’s horoscopes. Enjoy today’s puzzles.


The Tuesday morning update contained an incorrect link to the article “Drowned animals in British Columbia are another side of a flawed farming system.” Read the story here: https://www.theglobeandmail.com/opinion/article-drowned-animals-in-bc-are-a-further-facet-of-a-flawed-farming-system/


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