•US Marketplace: Chrysler-Ford and GM in labour union quagmire it seems, following orders from outgoing President Bush to make their labour rates competitive with Japanese auto makers in the US. This situation will affect those canadian operations as well. Can’t imagine all that taxpayers monies being made available to the auto inustry without concessions (pain) being warranted from all sides.
•US Marketplace: Intermediate-term investment grade corporate bonds have shown strength in the past week or so, due in part to a weak US dollar and positive gold prices. Good news for investors seeking relatively safe yields for their cash?
•Canadian Marketplace: Chartered banks and conference board of canada ask federal government for an additional $15 Billion Dollar aid package. By stimulating the economy with billions of dollars in spending and tax cuts, governments intent would be to encourage canadians to spend, consume and invest, which could-would-should, create employment and counter this recession psychology now prevalent in our great nation.
•Canadian Marketplace: Abitibibowater in Montreal plans to sell the bulk of its hydroelectric assets in Ontario early in 2009. $197.5 million is the asking price before expenses, apparently to an unidentified buyer in a non-binding agreement. Do we assume more of our Canadian resources are to be foreign owned? Immediate cash flow versus long term sustainability is my take on this transaction.
•International Headlines: Brazil buys 50 helicopters and 5 submarines from France for $12 billion dollars.
…..Doug T
