By Staff | October 15, 2008 | Last updated on October 15, 2008
4 min read

(October 15, 2008) The turmoil in the United States is limiting Canadian economic growth to 0.8% in 2008, but Canada will avoid a recession, according to a report by the Conference Board of Canada.

“To understand Canada’s outlook, we need to separate the extraordinary current financial turmoil from the impact on the real economy,” says Glen Hodgson, senior vice-president and chief economist.

“Living beside a troubled neighbour is taking its toll. Massive declines in the trade sector have shredded Canada’s economic growth, and raw material prices have fallen off their peak levels. Still, the domestic economy has enough momentum to keep Canada out of a recession.”

For 2008, domestic demand remains a pillar of economic growth. The income effect from resource prices still carries plenty of momentum—as reflected by the strength in real after-tax income and corporate profits over the first half of this year.

However, the U.S. housing crash and the ensuing financial market crisis are affecting investor and consumer confidence and tightening credit conditions on a global scale. Slower economic growth in industrial and developing economies is taking the shine off commodity prices, which will weaken the real income gains that have sustained the domestic economy.

Real net exports are expected to fall by $34 billion in 2008, an amount equivalent to 2.5% of real GDP. In line with a steep drop-off in U.S. vehicle sales, Canadian auto exports are forecast to fall by 19% this year—with Ontario bearing the brunt of the losses.

Signs of malaise are creeping into the outlook. While the manufacturing sector continues to bleed jobs steadily, other sectors have also seen an erosion in the growth of jobs in recent months.

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Rothwell joins Canaccord

(October 15, 2008) John Rothwell has left Wellington West Capital to join Canaccord Capital, where he has been appointed executive vice-president and head of private client services. Rothwell was president of Wellington West.

“John is an exceptional new partner on our leadership team with an outstanding knowledge of the brokerage industry and a clear view of where it is going,” said Paul Reynolds, president and CEO of Canaccord Capital. “His depth of experience, energy and entrepreneurialism will be critical to the continued growth and success of our Private Client Service platform.”

Rothwell is a financial services veteran with over 30 years of experience. He has worked at Midland Walwyn Capital, Mackenzie Financial, and Fidelity Investments prior to his position at Wellington West.

He takes the reins of the private client services division on October 30.

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Mercer announces new additions

(October 15, 2008) Pierre Neatby and Clare Collins-Newton have both joined Mercer’s outsourcing business.

Neatby will be the Canadian business leader and will be responsible for building upon the company’s benefits outsourcing in this country with a specific focus on client service and business development.

He has more than 20 years of industry experience and previously worked at Buck Consultants, where he served as vice-president, benefits outsourcing. Neatby will be based in Mercer’s Canadian headquarters in Toronto.

Collins-Newton joins the company in a new role as chief information officer, North America, and will head the consolidated Canadian and U.S. technology teams for Mercer’s outsourcing business.

She has more than 15 years of experience and most recently served as vice-president of information technical management for ACS. Collins-Newton will be based in Mercer’s outsourcing global headquarters in Norwood, Mass.

“We are thrilled to add two new senior-level executives with such significant industry experience and leadership skills,” says Jeff Miller, president and group executive for Mercer’s outsourcing business.

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Early bird tickets still available for awards show

(October 15, 2008) For financial industry–types who need to blow off some steam after seeing the markets fall once again, there’s a party coming up that might take the edge off.

The Canadian Investment Awards and Gala, which is set to take place on December 3 at the Fairmont Royal York in Toronto, is offering cocktails, hors d’oeuvres, a gourmet dinner and, of course, a bevy of awards to stressed-out members of the financial services industry.

If you haven’t bought a ticket to the gala yet, don’t fret: the early bird ticket deadline has been extended to November 5.

Sabine Steinbrecher, CEO of the Canadian Investment Awards, says the decision to move back the early bird deadline has to do with the recent market turmoil. “We are sensitive to the fact that firms are concentrating on their clients through this period of volatility and hope that by pushing back our deadline, we will give our regular attendees and nominees, particularly from the smaller firms, the time they need to take advantage of our discounted pricing,” he says.

(10/15/08) staff


The staff of have been covering news for financial advisors since 1998.