CMHC says many major housing markets showing signs of overvaluation

Canada's national housing agency says nine of Canada's 15 largest housing markets are showing signs of being overvalued.

The Canada Mortgage and Housing Corporation said in its quarterly Housing Market Assessment Wednesday that a majority of Canada's large housing markets are showing either "moderate" or "strong" evidence of being overvalued.

The housing agency looks at housing markets to gauge their health based on four factors: ■overheating — when demand is significantly and persistently outpacing supply ■overvalued — when prices are higher than they should be based on economic fundamentals ■accelerating — when house prices are increasing faster than household costs of living are ■overbuilding — when supply of new homes significantly outpaces demand.

The agency rates each market on a colour coded scale where green means there is little evidence of that factor, yellow means there is moderate evidence of it and red means there is strong evidence of it.

On the overvaluation front, the CMHC says there is moderate or strong evidence of that happening in Vancouver, Edmonton, Calgary, Saskatoon, Regina, Hamilton, Toronto, Montreal and Quebec City.

Four of those cities — Toronto, Quebec City, Vancouver and Saskatoon — now show "strong" signs of overvaluation.

The first two were singled out in the agency's last report on housing in January. But the latter two were only recently given their red warning on overvaluation.

In Vancouver's case, the housing agency said "Single-detached home prices are now observed to be at levels higher than those consistent with financial, economic and demographic fundamentals."

But the problem in Saskatoon, meanwhile, is tied to recent downward revisions to the area's population, which makes it harder to justify. House prices in the greater Saskatoon area declined 2.7 per cent in March, data from the Canadian Real Estate Association showed.

Across the country, Canada's housing market set a record last month both in terms of prices — now up to $508,567, on average — and the volume of sales, CREA said.

Aside from overvaluation in pockets, the CMHC's assessment sees little cause for concern nationally. "Overheating and acceleration in house prices are not a concern at this time," the CMHC said.

(Courtsey: image: Google Images, Article: http://www.cbc.ca/news/business/cmhc-housing-vancouver-toronto-prices-1.3555680)

Toronto-based Transpod built a Hyperloop prototype that aims to be the 5th mode of transportation

Since Elon Musk put forward the concept of a 5th mode of transportation — known as the hyperloop — to the public, teams from all over the world have been trying to make this a reality.

From MIT engineers to smaller student engineering teams, the global effort shows that anyone is fair game to create a transportation method that could have a profound effect on our ideas of transportation.

Toronto-based Transpod, a startup dedicated entirely to creating a hyperloop, is one of these startups that are leading the charge. Transpod currently has a half-scale prototype, and intends to present a full-scale concept at the InnoTrans Rail Show in Berlin. Sebastien Gendron, the founder and CEO of Transpod, describes the company’s ambitious timeline: Transpod plans to work for two years with industry partners before moving on to governments and municipalities, including entities like Transport Canada, to have approval to build a line between 2020-2025.

With at notable experience working in the transportation industry under his belt — he’s held positions like flight operations manager at Airbus and project manager at Bombardier Aerospace — his confidence in the possibility of the hyperloop isn’t surprising.

While he isn’t specifically looking to build in Canada first, he is interested in building a line between Toronto and Montreal if he were to build here.

Gendron argues that building the Hyperloop isn’t as futuristic of a concept as people think it is, because the system is just a hybrid between an aircraft and a train.

“It’s really the way we put it together which can make it work. So a tube in a low pressure environment which can allow the vehicle to move in frictionless environment, that’s one of the items needed to reach those speeds, and all of the technical components of that mode of transport already exist,” he said. “Like the cabin, the cabin will have to be pressurized like an aircraft. So all the systems are existing today, it’s just a matter of putting them in a different vehicle.”

Transpod has an academic collaboration with the University of Toronto’s Institute of for Multidisciplinary Design and Innovation, as well as a corporate partnership with REC Canada. He iterates that the biggest challenge is not simply building the thing — it’s selling the benefits of the hyperloop to people who aren’t familiar with its long-term benefits.

“Even today, people are looking for innovative transportation systems. So I expect those needs to help us overcome those challenges,” he said, adding that it also should prove to have economic benefits for governments that are keen on creating jobs. “What we would like people to understand is that tomorrow if you’re capable of connecting two huge cities together that are 30 minutes away from each other, it’s a huge economic advantage to shrink distance and time.”

The infrastructure industry in the past has been dominated by major transportation organizations that have the resources to undertake such large-scale projects. The hyperloop, with an almost sci-fi feeling to it, presents an opportunity for agile startups to change the way we think about transportation.

“It’s so different that regular players like Bombardier and Boeing won’t take the risk to start doing it so there’s room for a startup company to work on that,” said Gendron. “I took the challenge and decided to do it.”

This article was originally published on our sister site BetaKit (http://mobilesyrup.com/2016/04/28/toronto-based-transpod-built-a-hyperloop-prototype-that-aims-to-be-the-5th-mode-of-transportation/)

GOOD NEWS: multi-billion dollar deal of BOMBARDIER INC.

Bombardier Inc. is reported to be on the verge of announcing a big order for its CSeries passengers jets with large U.S. carrier Delta Air Lines Inc.

The Globe and Mail says Bombardier will announce Thursday it has won a multi-billion dollar deal with Delta.

Multiple reports have suggested that Delta could purchase up to 125 CSeries aircraft. ■Bombardier nearing sale for up to 125 CSeries aircraft to Delta Air Lines: report ■Air Baltic expands CSeries order to 20 jets, Bombardier says ■Swiss Air to put 1st CSeries jet into commercial operation by 3rd quarter ■Federal help for Bombardier pitched by premiers Couillard and Wynne

"This order might well mean the difference between life and death for the [CSeries] program," said Richard Aboulafia, vice-president of analysis at Teal Group Corp., an aerospace and defence consulting firm in Fairfax, Va.

"If signed, it establishes the CSeries as a viable and competitive third player in the single aisle market. It would also give them the kind of production numbers needed to be competitive against Airbus and Boeing,"

Reuters reported earlier this week that Delta would be the first major American airline to buy the CSeries aircraft.

"You could certainly see other U.S. carriers look more closely at the CSeries," Aboulafia said. "If fuel gets expensive again, fleet optimization becomes more appealing."

Bombardier has booked orders and commitments for 678 CSeries aircraft, which includes firm orders for 250.

The CSeries is a new narrow-body, medium-range plane that comes in two variations, the CS100 and the larger CS300. The development program has seen several delays, though, which is believed to have deterred buyers.

The company, which has been strapped for cash, has asked the federal government for $1 billion US to help sell the CSeries, a request Ottawa has been studying carefully since it was first made late last year.

Bombardier said Tuesday it will report its results for the quarter ended March 31 on Thursday, one day earlier than scheduled.

Shares of Bombardier added two cents on Wednesday to close at $2.01 on the TSX.

with files from The Canadian Press and Reuters(http://www.cbc.ca/news/business/bombardier-delta-1.3555945)

VW to offer to buy back nearly 500,000 U.S. diesel cars - sources

By David Shepardson WASHINGTON (Reuters) - Volkswagen AG and U.S. officials have reached a framework deal under which the automaker would offer to buy back almost 500,000 diesel cars that used sophisticated software to evade U.S. emission rules, two people briefed on the matter said on Wednesday.

The German automaker is expected to tell a federal judge in San Francisco Thursday that it has agreed to offer to buy back up to 500,000 2.0-liter diesel vehicles sold in the United States that exceeded legally allowable emission levels, the people said.

That would include versions of the Jetta sedan, the Golf compact and the Audi A3 sold since 2009. The buyback offer does not apply to the bigger, 80,000 3.0-liter diesel vehicles also found to have exceeded U.S. pollution limits, including Audi and Porsche SUV models, the people said.

U.S.-listed shares of Volkswagen rose nearly 6 percent to $30.95 following the news.
VW in September admitted cheating on emissions tests for 11 million vehicles worldwide since 2009, damaging the automaker's global image.
As part of the settlement with U.S. authorities including the Environmental Protection Agency, Volkswagen has also agreed to a compensation fund for owners, a third person briefed on the terms said.
The compensation fund is expected to represent more than $1 billion on top of the cost of buying back the vehicles, but it is not clear how much each owner might receive, the person said.
Volkswagen may also offer to repair polluting diesel vehicles if U.S. regulators approve the proposed fix, the sources said. A VW spokeswoman, the EPA and the Justice Department declined to comment Wednesday.
VW will pay cash compensation to owners who either sell their vehicles back or get them fixed, one of the people briefed on the matter said. Owners selling back their vehicles will get an additional cash payment on top of receiving the estimated value of the vehicles from before the emissions scandal became public in September 2015.
Owners are expected to have around two years to decide whether to sell back vehicles or get them repaired. It is not clear whether VW will be allowed to resell vehicles they buy back, the source said.
The framework deal with U.S. officials was reached after lengthy talks in recent days at the Washington law office of Robert Mueller. The former FBI director is the court appointed mediator named to help settle more than 500 civil suits filed against VW. The talks, which continued over the week, included all the government agencies and lead plaintiffs attorneys suing GM.
Some elements of the settlement are still being worked out and details are not expected to be announced Thursday at a court hearing, the people briefed on the matter said. The final deal could still change before it is officially announced, they said.
U.S. District Judge Charles Breyer in March gave VW until Thursday "to announce a concrete proposal for getting the polluting vehicles off the road."
Breyer said in March the "proposal may include a vehicle buy-back plan or a fix approved by the relevant regulators that allows the cars to remain on the road with certain modifications."
A final settlement is also expected to include an environmental remediation fund to address excess pollution emitted by the U.S. vehicles since 2009.
It is not clear if the deal will resolve the U.S. Justice Department's civil suit filed in January against VW or if VW will agree to pay a civil penalty. VW also faces ongoing criminal investigations by the Justice Department and other prosecutors around the world.
Separately, Germany's Die Welt newspaper reported Wednesday that the deal to settle the case would involve it paying each affected customer $5,000. But a person briefed on the matter told Reuters that no decisions on how individual compensation will be awarded have been made. In December, VW said it was creating an independent claims program for owners of vehicles with excess emissions.
It named compensation expert Ken Feinberg, who administered funds for the Sept. 11, 2001 attacks, BP Plc Deepwater Horizon oil spill and General Motors Co ignition switch crashes, to create and administer the program.
cOURTESY: yAHOO fINANCE (Reporting by David Shepardson; Editing by David Gregorio and Andrew Hay)

OIL is zooming..good or bad news coming for canada????????

Toronto: Oil prices are gaining momentum with recent news of strikes of Kuwaiti oil field worker. We should be more cautious about catching this momentum by Canadian Loonie. As every one knows that because of lower loonie cost, canada manage to gain lot of lost manufacturing conracts, which were bound to go to Mexico.

Now, as oil prices going marginally up, and expected to remain close to $ 60.00, canadian government should be cautious and not to take it as a win of canadian loonie and starting ramp up new projects and increase government debt.

It is actually two sided sword.

If loonie gain against US dollar we can manage keep our cost of imported grocery down, and inflation under control. But if we loose our trade because of that than we might loose some of the business we are getting from USA. This will ultimately leads us to lower job rate and higher unemployment rate, as well as lower tax collection. Brent Crude $ 44.03 at 4/19/2016.

OIL is zooming..good news coming for canada

Infosys hits record high, up 8% post Q4: Will rally last?

Shares of Infosys are flying off the shelves after it surprised the street with its March quarter results on Friday. Infosys rallied over 8 percent touching record high of Rs 1267.90 per share on Monday.

The IT software major’s profit grew by 3.8 percent to Rs 3597 crore in January-March quarter compared to Rs 3,465 crore in preceding quarter despite fall in other income. Rupee revenue increased 4.1 percent sequentially to 16,550 crore from Rs 13,411 crore in same period. Dollar revenue in Q4 rose 1.6 percent to USD 2,446 million and 1.9 percent in constant currency compared to preceding quarter.

So, will the rally and appetite for infosys last?

Credit Suisse feels the stock may touch Rs 1450 per share stating it will remain a solid defensive stock for the time being. The brokerage firm has an outperform rating on the stock. It is impressed that Infosys' FY17 guidance is encouraging. Infosys guided to 11.5-13.5 percent revenue growth in constant currency for FY17. However, it adds that there are some minor downward model revisions due to lower yields assumed on the cash balance.

CLSA has increased its target price to Rs 1350 a piece. But the firm has downgraded the stock to outperform from buy as it sees challenges for further acceleration of the company till client mining can be broad based.

It adds that while Infosys has clearly been able to increase growth dramatically over the past year, its margin looks softer than a year ago while there is limited incremental traction on capital allocation beyond FY15’s dividend increase. Margin cuts along with a likely lower interest yield and higher taxes have also lead to drive minor cuts to its FY17/18 earnings.

"Infosys’ shares appear to have come full circle the last year from a ‘show-me’ stock post Q4FY15 to industry leadership beginning to be priced in at an 18.5x 1-year forward PE," it says in a note.

Meanwhile, Deutsche Bank has retained hold rating with a target price of Rs 1200 per share. It cautions that Infosys' guidance is healthy but does not suggest meaningful acceleration while pricing declines limit the upside to guidance and margins. Deutsche Bank will keenly watch for any improvement in the large deal total contract value and pricing trajectory, before changing view.

At 10:58 hrs Infosys was quoting at Rs 1,248.15, up Rs 76.10, or 6.49 percent on the BSE. Follow @ NasrinzStory
Courtesy: Moneycontrol.com Read more at: http://www.moneycontrol.com/news/stocks-views/infosys-hits-record-high8-post-q4-will-rally-last_6294461.html?utm_source=ref_article