What To Watch In Canadian Markets This Week

Published 2020-05-25, 08:45 a/m

Bank of Canada Governor Speaks Monday

Stephen Poloz, the outgoing governor of the Bank of Canada, is scheduled to speak via videoconference at the University of Alberta today.

The head of the country’s central bank, who is set to retire in June, will be offering his remarks as part of the university’s Eric J. Hanson Lecture Series that focuses on economics and public policy. The topic of Poloz’s speech is Monetary Policy in Unknowable Times. It is expected he will expand on his recent remarks that the federal government’s move to enact the Canada Emergency Response Benefit is an effective tool to help the country respond to large, sudden shifts in the economy.

Poloz will also be making an appearance tomorrow in front of the Senate standing committee on National Finance, along with senior deputy governor Carolyn Wilkins.

Poloz will be stepping down as the BoC governor June 2. He will be succeeded by Tiff Macklem. Macklem is a former senior deputy governor of the central bank who served from 2010 to 2014. His most recent position has been the dean of the Rotman School of Management at the University of Toronto.

Canada’s Big Banks Report

All six of Canada’s big banks report earnings this week. And there is not too much good news expected.

Scotiabank and the National Bank are the first two out of the gate as they unveil their latest quarterly results on Tuesday. They will be followed by the Royal Bank and the Bank of Montreal on Wednesday, then Toronto-Dominion and the Canadian Imperial Bank of Commerce on Thursday.

Drops in quarterly revenues are expected, as well as increases in credit loss provisions, as the period the quarterly results covers includes the onset of the COVID-19 shutdowns.

March GDP Numbers Out Friday

The week will be capped with the release Friday of the latest gross domestic product numbers for the month of March, as well as the first full quarter of the year.

Statistics Canada has already released a preliminary report including estimates for March, which is when the economic shutdown began due to the pandemic. It indicated a 9% drop in economic activity for the month. It is not expected that the actual figures will be any better.

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