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

Good morning,

Bank of Canada warns that high levels of household debt raised over a long period of low interest rates and a madness with real estate investments could destabilize the economy as interest rates begin to rise.

Canadians, who stretched their finances to buy into the white-hot real estate market, are very much exposed to rising debt service 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 flooded into the market in a speculative haste, he said, driving home prices up and exacerbating Canada’s problem of affordability. The average house price has risen more than 30 percent since the start of the pandemic.

A home for sale on Euclid St. in Toronto, photographed 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 Throne Speech

The speech from the throne issued a sharp warning about the future of the planet when Governor-General Mary Simon opened the 44th Parliament, describing a world “at risk” from climate change and urging lawmakers to translate “talk into action.”

The minority government’s Liberal government plans emphasized limiting greenhouse gas emissions and highlighted two other important campaign promises – “getting the pandemic under control” and creating a “more resilient economy.” The speech often mentioned the economy, but had only one reference to inflation, leading to the largest rise in prices in nearly two decades.

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

For months, Freddy Pestana Herrera has seen migrants pass through this roadless corner of northwestern Colombia, their backs filled with packages and their eyes trained on a muddy, slippery path intersected by tangles of roots and streams of running water. These are the opening steps to Darien Gap, a wild, water-wet region that separates South America from North America – and a popular destination for migrants seeking to find their way over land to the United States. This year, 95,000 people have taken the trip, more than ever before.

Migrants must navigate about 80 river crossings to reach the Panama border and then travel through untamed jungle. Now another barrier awaits them – the efforts of a US government that has reached far beyond its own borders to slow down their path.

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ALSO ON OUR RADAR

BC offers financing to families affected by floods: British Columbia is offers $ 2,000 in emergency aid to the thousands of families pushed out of their homes by last week’s floods and mudslides as people in the southwestern part of the province prepare for more heavy rain this week.

Parents across Canada rush to order COVID-19 vaccines for children: With 2.9 million pediatric vaccines now in Canada, tens of thousands are of parents hurry to book times. Demand has been high in the beginning – but it is still unclear how many parents will graft their children after the first stroke.

Rogers-Shaw acts badly for the competition, says the rival: Rogers Communications Inc.’s $ 26 billion acquisition of Shaw Communications Inc. would “significantly reduce” competition and choices for consumers of TV services, rival Telus Corp. told Canada’s telecom and broadcast regulator yesterday.

Western aid workers in Afghanistan face an almost impossible task: After the United States and its allies withdrew their military presence from Afghanistan and brought with them embassy staff from around the world, 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 release of documents about fired scientists: Federal opposition parties are pushing the liberal government to release secret documents about the firing of scientists Xiangguo Qiu and her husband, Keding Cheng from Canada’s highest security laboratory. The Globe and Mail has reported that the RCMP is investigating whether the two scientists passed on Canadian intellectual property to China, including the Wuhan Institute of Virology, while working at the National Microbiology Laboratory in Winnipeg.

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MORNING MARKETS

Markets await US data: Global stocks regained some lost ground Wednesday, as crude oil prices lifted oil companies, but rising COVID-19 cases in Europe, weaker economic sentiment in Germany and a bagful of US data ahead of Thanksgiving were a focus for investors. Around 5:30 am ET, the UK FTSE 100 added 0.11 per cent. Germany’s DAX and France’s CAC 40 fell 0.35% respectively. and 0.32 per cent. In Asia, the Japanese Nikkei lost 1.58 percent. Hong Kong’s Hang Seng rose 0.14 per cent. New York futures were down. The Canadian dollar is trading at 78.87 US cents.

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WHAT EVERYONE IS TALKING ABOUT

Cathal Kelly: “On Monday, The Globe’s Andrew Willis broke a news that Rogers is not does not open to someone taking part of the Jays from his company’s hands. The apparent leading candidate – himself … This is not a regime change. It is to mix money between the checking account and the savings account. No matter what happens, Rogers (the company, the person or a combination thereof) remains responsible. It means more of the same. ”

Erik Morse: “A half provocation is still a provocation. Think of our young people instead of the two Michaels and ask if the risk for them is worth it. As observers increasingly begin to wonder if it is safe to travel to China, we should not take the risk of shoveling Canadian athletes into the wolf warrior’s belly. There should be a boycott, but if Canada is to go that route, it must be all or nothing. “

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TODAY’S EDITORIAL CARTOON

Brian GableBrian Gable / The Globe and Mail

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LIVE BETTER

Travel deals for travel now or in the new year

Black Friday and Cyber ​​Monday are traditionally some of the best times to book travel. The deals available are incredible and travel dates are flexible. So if you are thinking of booking a trip soon or for the new year, you will want to do so soon as these agreements will not hold.

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MOMENT IN TIME: NOVEMBER 24, 1874

East Texas farm owner rolls up 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, locomotive and telegraph “won” the West. The real story of what changed the United States is more banal. It was barbed wire – which had existed for almost a decade before being improved and successfully patented by Joseph Glidden, a farmer from DeKalb, Ill., On this day in 1874. Glidden figured out how to create and mechanically manufacture a pointed metal barb that was caught between two twisted wires so it would not slip. The barb can stab and cut like a knife if it was accidentally brushed against it. The invention changed ranching – and property rights – almost overnight. Farmers and landowners loved it because it put an end to the need for expensive wooden fences. No longer could domestic animals – or Native American tribes that had lived on the American border for 15,000 years – roam freely around the country. The cheap and easy-to-set-up fence killed the cattle ranch (and thus the cowboys) and the buffalo hike. Indigenous peoples called it “the devil’s rope” because it helped enforce boundaries where none had previously existed. But its spread enveloped the country at a rapid pace, and the mythical Wild West was won – and done. Philip King

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Read today’s horoscope. Enjoy today riddles.

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Tuesday’s morning update contained an incorrect link to the article “Drunken animals in BC are an additional facet 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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