Things have become much worse than just a few months ago.
One of the oldest Canadian company HBC has announced that they will shut all their 37 Home Outfitters stores as well as review and possibly shut several Saks Fifth Avenue stores.
3 days ago, Payless Shoe Source went bankrupt and said that they will close ALL 2,500 stores out of which 248 stores will shut all over Canada.
Last month, another retailer shut all it's 49 stores across Canada.
10 days ago, Cathay Pacific decided to close their offices in Toronto.
Hong Kong’s Cathay Pacific Airways set to close Toronto cabin crew base, with up to 120 jobs at risk
Last week, another 900 Canadians lost their jobs as a RV maker shut down after 45 years.
Cambridge RV maker Erwin Hymer shutters plant, 900 lose jobs
Even the Govt's currency printing department, Royal Canadian Mint, fired 45 employees last week.
In Dec 2018, a call center shut down after 19 years of operations in Nova Scotia, Canada.
Dec 2018: SNC-Lavalin cuts 100 jobs as Quebec premier says engineering giant is vulnerable to takeover
This is from Nov 2018 but not all jobs are in Canada. However, this is Bombardier from Montreal.
In case you didn't know, Reuters News is owned by Thomson family from Toronto from where it derives it's updated name Thomson Reuters.
They have announced a massive job cut all over the world, including in Canada where they have their HQ.
GM's car factory in Oshawa, Canada, near Toronto, has fired thousands and may eventually shut down.
These lay offs in media and digital world are occurring fast all over Canada. This is from 2 weeks ago.
Media layoffs continue at Canadian Press, Corus
Meat group Olymel to close Canada plant
And this one was announced last night:
This media job cuts are also yesterday.
As far as Vancouver real estate is concerned, here is the latest update:
Here is latest update on Toronto condo market which were considered "strong" by many.
So far, in real estate, just sales have plunged back to 20 year levels which is pretty much 50-60% decline or higher, while population has risen.
This shows that the quality of people immigrating to Canada is deteriorating rapidly, quality of jobs is bad, jobs don't pay as much or pay the same as they did 20 years ago and spending power is rapidly declining resulting in millions of people being impacted in thousands of families across Canada.
Real estate prices should start impacting the 1 million dollar and below homes after March once the spring season begins and we should expect a deluge of homes hitting the market.
So far, over 1m dollar homes have seen a decline of 20-30% in their price across major cities and are being sold in a hurry before more people list their homes.
Average months for an unsold home remaining on the market has jumped massively.
Mortgage stress is rising across Canada and banks are under pressure as are mortgage lending companies. Some investors have started betting against the market and are shorting Canadian banks and mortgage companies already. We also recommend to do so over the next 6-18 month time frame.
The latest data suggests that more Canadians are going bankrupt which means there is less consumer spending power which can be observed in declining real estate and retail sales.
We don't believe that everyone will go bankrupt but the millions who live pay check to pay check or lose their jobs or have seen decline in real wages or depend on exports oriented jobs or retail jobs etc will find it very tough to find a new job or avoid a financial hardship in 2019 and 2020.
We expect home prices to decline significantly in 2019 and 2020.
The impact will come from China who will most likely take action against Canada for the Huawei saga occurring in the courts of Vancouver.
Canada and PM Trudeau should have never dipped their toes in the hot waters on the insistence of their American partners.
Now, the price shall be paid by the Canadian workers and taxpayers.
As recently as last week, there was more news about this.
China has already warned Canada officially not to ban Huawei, so the ball is in Canada's court whether to ban Huawei and face the repercussions of the world's largest consumer, manufacturer & investor or not.
We highly recommend Govt of Canada to stay away from banning Huawei and thus avoid facing the wrath of the dragon.
Otherwise, just like all the high spending Saudis were asked by their Govt to leave Canada in a hurry in Oct-Nov 2018, similarly hundreds of thousands of Chinese shall leave Canada and completely stop investing during 2019, in the event Huawei gets banned.
This shall further accelerate the plunge of the Canadian economy.
However, even without China acting against Canada, which is still up in the air as on date, there is no chance of any recovery for years to come for dear Canada.
This shall further accelerate the plunge of the Canadian economy.
However, even without China acting against Canada, which is still up in the air as on date, there is no chance of any recovery for years to come for dear Canada.
Here is another interesting news. "Trade War Goes Global: China "Indefinitely" Bans Australian Coal Imports" https://www.zerohedge.com/news/2019-02-21/miner-shares-slide-beijing-bans-australian-coal-imports
ReplyDeleteGas stations "Canada and Australia" will be destroyed.
Dear AB,
DeleteYes, that's correct. Oil and commodities remain range bound or lower than several years ago both in volumes as well as prices.
Unfortunately, 2019 onwards, Australia and Canada both will see declines.
Multiple factors from politics, to economics to trade to currencies to oil prices to trade volumes to rapidly rising unemployment to declining sales and prices of real estate to business and retail closures are responsible in both the economies that will cause chaos for millions.
Thank you for visiting and best wishes,
Thank you for sharing another breathtaking article containing lot of great information which will help in understanding the ongoing affairs worldwide. I'm really surprised to read the future not so good looking for Canada as I wasn't aware about it before I stumbled upon your blog several months back.
ReplyDeleteDear Mr AbulBasit,
DeleteMany thanks for visiting the blog regularly and for your compliments which are most appreciated.
All countries are in trouble due to different reasons which can be broadly classified as over population, lack of jobs, decline in "globalization" or deglobalization as I had coined it several years ago.
In addition, whoever is not friendly to China will pay a heavy price while those who are unfriendly to America shall be bombed back to the stone ages.
Options are very limited and every country except China, Philippines and somewhat Russia is struggling and declining at their own speed.
Canada is paying the price for antagonising Saudi and fighting with China.
Most people don't know that Canada is the only country who currently has no trade deal with China or India (both fastest growing economies for trade) as well as a dying and reducing-in-trade relationship with America.
3 of the top most countries don't wish to do trade deals with Canada for different reasons and now Saudi has completely disconnected itself from Canada too.
Canada wont know where to run within a few months because their decline started in the spring of 2018 and is now gathering speed, as soon as they come out of their yet another terrible snow season from March 2019 onwards.
Hope this helps.
Please do keep visiting.
Thank you and best wishes,