KeatsConnelly Cross-Border Weekly Best of the Web 2015-11-6

web-search-greyEvery week we share news stories, blog articles and other interesting stuff from around the web that received the most views, shares, comments and overall interest on various KeatsConnelly social media outlets.

This week brings a heavy dose of currency and trade balance focused news including two pieces discussing movement of money into Canada and the USA, a view on the impact of a lower Canadian dollar on Canadian snowbird plans and a piece reviewing expectations for the Canadian dollar going forward.

Record levels of cash flocking to the U.S. (www.cnn.com) – A record breaking amount of cash is flocking to the United States. Foreign direct investment into the U.S. hit $200 billion in the first half of 2015, a record high according to a report published Thursday by the Organization for Economic Cooperation and Development (OECD). It’s a sign that global investors are optimistic about the U.S. economy at a time when the rest of the global economy undergoes a slowdown. However, a lot of the money can be traced to foreign entities that are buying U.S. companies. Many of these companies then relocate overseas to escape high corporate taxes in the United States…

Descending loonie alters Canadian snowbirds’ sunny retirement plans (www.theglobeandmail.com) – Dominic Minervino, 61, has been spending a good part of the year in San Diego since 2009, when he took full advantage of the plunge in U.S. real estate prices and the high Canadian dollar to buy a three-bedroom home in the city with a spacious yard and a two-car garage. “I love it down there,” he says. “I can pick lemons straight from my garden and the weather is always beautiful.” The Toronto man admits, though, that with the Canadian dollar on a downward spiral, this year he’ll be watching his pennies. “Have I changed my lifestyle? No,” says Mr. Minervino. “Am I conscious of it? Absolutely…

Money is flooding out of Canada at the fastest pace in the developed world (www.financialpost.com) – Money is flooding out of Canada at the fastest pace in the developed world as the nation’s decade-long oil boom comes to an end and little else looks ready to take the industry’s place as an economic driver. Canada’s basic balance — a measure of national accounts that spans everything from trade to financial-market flows — swung from a surplus of 4.2 per cent of gross domestic product to a deficit of 7.9 per cent in the 12 months ending in June, according to analysis from Kamal Sharma, a foreign-exchange strategist at Bank of America Merrill Lynch. That’s the fastest one-year deterioration among 10 major developed nations…

Scotiabank forecasts Canadian dollar below 80 cents until end of 2017 (www.cbc.ca) – Get used to the cheap Canadian dollar because it’s going to be around for a while, one of Canada’s major banks predicted Wednesday. In its monthly currency forecast, the Bank of Nova Scotia said it thinks the loonie will bottom out at around 73 cents US by the end of this year, before dipping even lower in 2016.  There are good economic reasons to think that’s possible. The value of Canada’s currency has been closely linked to the price of a barrel of oil, and there’s little to suggest oil prices are going to get anywhere near the levels they were at through much of 2014 any time soon…

Come back in next week for more interesting news and articles. Enjoy your weekend!

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