On Monday, the S&P 500 was unchanged and Toronto was up 0.3%.
The biggest gainer on our list was Constellation Software, up 2.0%.
Bombardier was down 4.9% to $1.75. I did not see any news to explain the sharp drop.
Oil has slipped down to $43.13. Hopes that OPEDC would be able to get its members to agree to production cuts to boost the price seem to be fading as it was indicated that an upcoming meeting will be for discussions only and not for decision making. Also Venezuela said that it believes the Oil market is 10% over-supplied. In the absence of collusion among producers to lower production it would logically require a price drop to achieve a production cut.
I saw a report today where A Canadian Senator lamented that Alberta has lost $50 billion in capital spending due to a lack of pipelines. I don’t know if that figure is accurate. I do certainly agree that Alberta would benefit from added pipelines to get the oil out. The Alberta oil price is apparently lower than the world price due the pipeline bottleneck.
However, I do not agree that additional billions should have been invested into Alberta oil production. And certainly not unless it could be profitable at current oil prices. Additional investments would lead to more production and lower oil prices. Every dollar of capital spending may add to GDP. But that does not mean that such investment would be a good thing for either the investors or the wider economy.