Canada’s trade deficit moves to surplus

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Ottawa — The Canadian Press Published on Thursday, Jun. 10, 2010 8:52AM EDT Last updated on Thursday, Jun. 10, 2010 11:43AM EDT

Canada’s merchandise exports declined one per cent while imports fell 2.2 in April.
Statistics Canada says the declines were the result of lower prices.
The agency reports export and import volumes rose for a third straight month, though at a slower pace than in the previous two months.
Canada’s trade balance with the world went to a surplus of $175-million in April from a deficit of $236-million in March.
Exports decreased to $32.9-billion in April from $33.3-billion in March.
Export prices fell 1.4 per cent while volumes grew 0.4.

Industrial goods and materials accounted for three-quarters of the decline in exports. Widespread gains in exports of machinery and equipment moderated the overall decrease.
Following two months of growth, imports declined from $33.5-billion in March to $32.8-billion in April, as import prices fell 2.4 per cent and volumes grew 0.2 per cent.
Statscan says the decrease in overall imports in April reflected declines in industrial goods and materials and, to a lesser extent, in other consumer goods, and machinery and equipment.
Exports to the United States rose 0.7 per cent while imports grew 0.9. As a result, Canada's trade surplus with the United States remained at $3.8-billion in April.
Exports to countries other than the United States declined 5.5 per cent, largely the result of a 23.4 per cent decline in exports to the European Union. Imports fell seven per cent, led by decreases in precious metals from the European Union.
Consequently, Canada's trade deficit with countries other than the United States narrowed to $3.6-billion in April from $4-billion in March.

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PIMCO bond king Bill Gross has Canada in his sights

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David Parkinson

Globe and Mail Update Published on Thursday, Aug. 12, 2010 6:06AM EDT Last updated on Friday, Aug. 13, 2010 7:39PM EDT

The world’s biggest private-sector bond investor says the U.S. Federal Reserve Board is doing about all it can reasonably do to backstop the struggling U.S. economy and stave off deflation. But America’s government, despite $1-trillion (U.S.) of stimulus spending, isn’t doing nearly enough.
And until it comes up with some new solutions, Bill Gross says, his investment eyes will continue to wander to greener pastures – including Canada.
“We’re much more in awe of countries such as Canada, with a decently balanced budget, and with low debt-to-GDP, and with financial institutions that have been solvent and sound and conservative in their lending, and that have something to export,” said Mr. Gross, founder and co-chief investment officer of Pacific Investment Management Co. LLC (commonly known as PIMCO), which oversees more than $1.1-trillion (U.S.) in investment assets, primarily in the bond markets.
“North of the border has become, while not our favourite destination, certainly a preferable destination to what we see in the United States.”

Mr. Gross declined to say whether his bearish views are translating into a reduction in PIMCO’s exposure to U.S. government bonds – indeed, as recently as June his funds’ holdings of Treasuries were on the rise and at eight-month highs. However, he has been raising his exposure in Canadian and Brazilian government bonds, and his favoured investment strategies right now are outside the U.S. market.
“Investors, whether it’s equity or bonds, should be oriented toward growth and stability, and, yes, a political foundation that promotes both.
“I’ve mentioned Brazil, and, yes, Canada’s a good place. Even Mexico has better initial conditions in terms of low debt than the United, States, but admittedly the stability issues and politics are a question. But in general, the developing world is in much better position than the developed world, so that’s where dollars should go.”

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