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What's the BoC's take on the Loonie?
http://www.ottawacitizen.com/business/fp/What+Bank+Canada+take+loonie/1636497/story.html
The loonie hit 90 cents US intra-day, yesterday. Interest rates cannot be lowered any further and it's widely believed that we're headed back to parity.
What does this mean to the NHL in Canada?
A year or so ago there was talk how the 6 NHL clubs were making the majority of the profit (to say nothing of the income) in the NHL, mainly because of the loonie's climb. It seemed like a prudent business decision to finally open the door for expansion (or moves) into more Canadian markets. Then the loonie cooled off, dropping top around 80 cents, and the talk mostly died down (Ballsillie's attempts notwithstanding).
Well, here we grow again. The NHL cannot ignore this trend. Several US clubs are struggling -- to put it mildly. What's the point of making a 20K seat arena a pre-requisite when you have to give tickets away just to fill it half-full? Why not actually collect money from 15,000 paying customers in Winnipeg or Quebec? The Copps Coliseum can hold nearly 18,000.
Come on, Bettman, what's your next move?
http://www.ottawacitizen.com/business/fp/What+Bank+Canada+take+loonie/1636497/story.html
In the days of former governor, David Dodge, the Bank of Canada
categorized currency movements into two scenarios: ‘type one’ and ‘type
two.’ Type one movements are based on domestic fundamentals, such as
commodity prices, GDP and fiscal balances, while type two movements are
a result of external factors, such as a depreciation in the U.S. dollar
due to current account concerns.
...
With Canadian interest rates at a record low 0.25%, the Bank’s only
ammunition against a type two appreciation would be a move into
unconventional quantitative or credit easing, whereby the government
buys up bonds in order to drive yields lower, stimulating the economy. But this is a form of monetary policy the bank has indicated it would prefer to steer clear of.
The loonie hit 90 cents US intra-day, yesterday. Interest rates cannot be lowered any further and it's widely believed that we're headed back to parity.
What does this mean to the NHL in Canada?
A year or so ago there was talk how the 6 NHL clubs were making the majority of the profit (to say nothing of the income) in the NHL, mainly because of the loonie's climb. It seemed like a prudent business decision to finally open the door for expansion (or moves) into more Canadian markets. Then the loonie cooled off, dropping top around 80 cents, and the talk mostly died down (Ballsillie's attempts notwithstanding).
Well, here we grow again. The NHL cannot ignore this trend. Several US clubs are struggling -- to put it mildly. What's the point of making a 20K seat arena a pre-requisite when you have to give tickets away just to fill it half-full? Why not actually collect money from 15,000 paying customers in Winnipeg or Quebec? The Copps Coliseum can hold nearly 18,000.
Come on, Bettman, what's your next move?
