Canadian Corona Recession in April 2020

With the economy in lockdown during March and April, Canada’s GDP dropped a record -18.2% due to the COVID-19 pandemic. Although not surprising, when compared to the Spanish Flu period and an economy that was much smaller in 1919, the impact of shutting down a consumer driven economy is stark. The good news is that while there are challenges to restarting carefully, it appears Canada has begun to recover, although many economists expect it to be a slower process.

Enjoy the full breakdown from our partners at NBF Economics HERE.

Small Business Optimism in May 2020

There is no question that Small Business was the hardest hit in the “Corona-Cession” and they remain the hiring engine of North American economies. In May, the NFIB Small Business Optimism Index bounced back from a seven-year low, springing 3.5 points to 94.4. This was its biggest monthly gain since November 2011.

Our partners at NBIF Economics who track Small Business Optimism suggests that the hope of seeing a post-pandemic rebound remains alive among small businesses.

Learn more about the sentiment of U.S. Small Business Owners from NBIF Economics here.

Bridge to Recovery from COVID-19

The economic impact of COVID-19 will continue to erode near-term certainty. The road to recovery is challenging but these are extraordinary times. We truly are ‘all in it together’ within the global economy. The Business Development Bank of Canada (BDC.ca) examines how other countries are moving forward in a measured, yet complicated to restart their economies from a hard stop.

Enjoy the “Great Reboot” from BDC which aligns each Canadian province with various countries that are in the midst of similar COVID-19 conditions.

What does the COVID-19 recovery mean for Entrepreneurs?

Our partners at National Bank Financial examine a recent report from the Bank of Canada Financial System Review (FSR). The report provides a data driven perspective on how financial services have been impacted ” to identify the main vulnerabilities and risks to financial stability in Canada and explain how they have evolved over the past year.”

We are here to help

Whether you are considering retirement or how to reboot your own business, we are here to help. Please feel free to reach out to us. 

Career Opportunity at Hampton Securities

Join our Senior Management team as Chief Compliance Officer (CCO) at Hampton Securities.

Hampton Securities Limited (HSL), a boutique IIROC Type 2 Introducing Broker, has a current opening for a Chief Compliance Officer (CCO). The opportunity is to provide full leadership of the compliance function, while being a strong and contributing member of the Senior Management team of an entrepreneurial firm, in business since 1996. 

Please submit your resume to: careers@hamptonsecurities.com

Covid-19 Virus Economic Update

As we close out a historical first quarter in 2020, we see the economic and financial data that illustrates the economic impacts of measures to mitigate the spread of Covid-19. Our partners at the National Bank Economics team offer a detailed review of many of these indicators in their recent April report.

Declining Oil Exports Will Slow Canada’s Covid Recovery

A recent economic forecast from RSM Canada sees Canada’s corona virus recovery evolving at a more modest pace than the U.S. In a recent article in Investment Executive Canada, RSM projects a ‘V’ shaped U.S. decline and bounce back as Canada is slower with a ‘U’ shaped, softer landing and slower climb out of recession. The difference is due to Canada’s export reliance, particularly in the oil and gas sector, which is also expected to decline significantly as a result of Covid-19. RSM argues that more fiscal stimulus is required as Canada’s current package amounts to 3% of GDP as the U.S. has offered 10% of GDP to date.

Residential Housing Market Will Be Impacted

Not surprisingly, according to the Canadian Real Estate Association (CREA), seasonally adjusted home sales fell 14.3% from February to March. The decline was broad based, with decreases reported in all 26 of the major markets surveyed. A National Post article echos the predictable change in what was a very robust real estate market.

Hampton Securities Advisors continue to keep you up-to-date and informed as we evolve through these challenging times. If you have any questions or concerns please feel free to contact us.

Covid-19 Update

There’s no question that Covid-19 is having significant impact across the globe. 

Since January 2020, Hampton Securities has been taking steps to ensure the safety of our employees and continuity of our services to all clients and partners:  Private Wealth, Institutional and Capital Markets. 

Some of our implemented measures include: remote working capabilities for all employees; enforcing quarantine for any employees who have travelled outside country; ensuring a strict visitor policy; leveraging technology to handle all meetings remotely; skeletal staff at our head office with the recommended physical distancing.

We were ahead of the curve and will continue to do our part to “flatten the curve,” while ensuring we are able to service all clients.

On March 24th, the Government of Ontario deemed Financial Services an “essential service,” which includes independent investment dealers like Hampton. 

We encourage you to seek the guidance of your Hampton Investment Advisor who is expertly trained to support you. 

On behalf of the Hampton Team, our best wishes for your continued safety and well-being.

Peter Deeb, Chairman & CEO

Sharon Castelino, President & COO 

Patrick Michaud, CFO        

Mike Deeb Jr., Vice Chairman

             

COVID-19 Daily Monitor on Policy and Tax

Our partners at NBF Economics have launched a detailed, daily monitor of various indicators regarding the COVID-19 (Corona Virus). We encourage our clients to review these resources and stay informed. The NBF Economics monitor is date driven, country by country.

Important Tax Measures for Canadians

On March 18, 2020, the Government of Canada announced a variety of tax measures to help Canadians facing hardship as a result of the COVID-19 virus. The major tax changes affecting individuals and small businesses will include:

  • Tax payment and filing deadlines extensions
  • Temporary income support for workers and parents
  • Special one-time payment of the GST Tax credit
  • Increased Canada Child Benefit payments
  • Student loans six-month interest-free moratorium
  • RRIF minimums annual withdrawal is waived

We encourage our clients to contact us with any questions or concerns they may have.

What is a Recession?

With the reduction in global economic activity due to the Corona virus (COVID-19), the reality of a recession is a common hot topic. The depth and breadth of a recession is dependent upon a number of factors. Our partners at National Bank Financial Economics offers a historical perspective.

“Will the ongoing coronavirus-related economic downturn also qualify as recession? We’ll have to wait some time to have an answer
from the CDHI. But if the March handoff is as bad as feared, we may get consecutive GDP contractions as early as Q1/Q2. Employment is likely to take a dive as well as businesses attempt to cut costs amid sinking revenues after operational shutdowns.”

National Bank Financial Economics, March 17th, 2020

Please contact your Hampton Securities Investment Advisor if you have any questions or concerns.