{"id":45160,"date":"2023-04-18T19:10:20","date_gmt":"2023-04-19T00:10:20","guid":{"rendered":"https:\/\/prefblog.com\/?p=45160"},"modified":"2023-04-18T19:10:20","modified_gmt":"2023-04-19T00:10:20","slug":"april-18-2023","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=45160","title":{"rendered":"April 18, 2023"},"content":{"rendered":"

There was good news from Canadian inflation<\/a>:<\/p>\n

The Consumer Price Index (CPI) rose 4.3 per cent in March from a year earlier, down from February\u2019s 5.2-per-cent pace, Statistics Canada reported on Tuesday. The slowdown was widely anticipated and matched financial analysts\u2019 predictions.
\n…<\/b>
\nEven so, the short-term trend has noticeably cooled off. Expressed at an annualized rate, the three-month change in core inflation (excluding food and energy) was 3.1 per cent in March, down from 3.4 per cent in February. It had peaked at more than 8 per cent in May, 2022.
\n…<\/b>
\nGasoline prices fell nearly 14 per cent over the past year, although they were up 1.2 per cent from February. The price of durable goods rose 1.6 per cent in March on a 12-month basis, slowing from a 3.4-per-cent gain in February.<\/p>\n

There have also been slight improvements in the grocery sector: Those prices rose 9.7 per cent over the past year, down from increases of more than 11 per cent in recent months.<\/p>\n

On the flip side, mortgage interest costs have surged by 26.4 per cent over the past year, rising from February\u2019s gain of nearly 24 per cent. \u201cThis was the largest yearly increase on record as Canadians continued to renew and initiate mortgages at higher interest rates,\u201d Statscan said in its release. Excluding these costs, the CPI rose 3.6 per cent over the past 12 months.<\/p><\/blockquote>\n

The New York Fed released its Business Leaders Survey<\/a>:<\/p>\n

Activity in the region\u2019s service sector continued to decline modestly, according to firms responding to the Federal Reserve Bank of New York\u2019s April 2023 Business Leaders Survey. The survey\u2019s headline business activity index was little changed at -9.8. The business climate index moved down nine points to -47.7, suggesting the business climate remains much worse than normal. Employment levels were unchanged, representing the first time in two years that employment has not increased. Wage increases moderated noticeably, and input and selling price increases slowed. Looking ahead, firms do not expect conditions to improve over the next six months.<\/p><\/blockquote>\n

The Bridging Finance story is getting even more interesting<\/a>:<\/p>\n

In a lawsuit filed with the Ontario Superior Court, PricewaterhouseCoopers Inc., the receiver, alleges that \u201cthroughout KPMG\u2019s tenure, the Bridging funds materially misrepresented the value of their assets and financial performance. KPMG negligently failed to detect and report on these misstatements.\u201d
\n…<\/b>
\nEarly last year, PwC estimated that investors will lose $1.3-billion, meaning almost two-thirds of Bridging\u2019s $2.09-billion in assets under management have vanished \u2013 one of the largest collapses of an investment manager in Canadian history.<\/p>\n

PwC increased that estimate to $1.4-billion in its new lawsuit, and it blames KPMG. \u201dThe Bridging funds are insolvent, and KPMG is liable for the liquidation deficit.\u201d PwC argues the shortfall \u201cwould have been avoided if KPMG had conducted the audit competently and in accordance with applicable standards.\u201d<\/p><\/blockquote>\n

OSFI has released<\/a> its Annual Risk Outlook for 2023-2024:<\/p>\n

Today, the Office of the Superintendent of Financial Institutions (OSFI) released its Annual Risk Outlook (ARO) for 2023-24, a publication that outlines what OSFI sees as the most significant risks facing Canada\u2019s financial system in the upcoming year. The ARO also informs Canadians about the actions OSFI will take in response to these risks.<\/p>\n

OSFI\u2019s Annual Risk Outlook for 2023-24 identifies the following key risks:<\/p>\n