Briefly:

Change is coming to Canaccord.

On Dec. 1, Canaccord Capital will officially become Canaccord Financial Inc. and its ticker symbols change from “CCI” to “CF” on the TSX.

Canaccord Capital Corporation will also change its name to Canaccord Financial Ltd. and Canaccord Financial Services Ltd. will change its name to Canaccord Insurance Services Ltd.

“Becoming Canaccord Financial is an important step forward in the continual evolution of our firm,” says Paul Reynolds, president and CEO of Canaccord Capital Inc. “This new name is a clear reflection of the broad scope and diversity of our operations, and positions our brand to accommodate our future growth.”

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Managers less bullish

While U.S. investment managers are cooling their views on stock markets, certain sectors are standing out as areas of opportunity, according to a survey by Russell Investments.

The Investment Manager Outlook survey of nearly 300 institutional money managers found that 78% of respondents are bullish on the technology sector, up slightly from 75% three months ago.

The healthcare sector also has managers feeling optimistic, with bullishness increasing to 56% in the most recent survey, up from 44% three months ago.

Also, the percentage of money managers that think U.S. stocks are fairly valued rose to 54% in the most recent survey, from 44% three months ago.

However, when it comes to emerging markets and corporate bonds, bullishness has slipped.

Favourable outlook on corporate bonds fell from 66% in last quarter’s survey to 44% in this one, while high yield bonds fell from 66% to 52%.

“At the end of last year and at the beginning of this one, the managers saw fixed income as a tremendous opportunity that was offering yields at historic levels,” says Mark Eibel, a director of client investment strategies with Russell Investments. “While there has already been a tremendous payoff in fixed income, the managers remain positive and see the asset class as one that is still ripe and not yet spoiled.”

While manager optimism for emerging markets fell 7 percentage points from the June survey, bullishness for non-U.S. (developed market) increased 10 percentage points.

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Financial institutions require accounting clarity

Convergence between the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) on complex financial instruments standards should offer a level playing field for global business, says a statement by Ernst & Young. Failing to do so can cause confusion and competitive disadvantage, while at the same time challenge the integrity of standard setting processes.

“As it stands, the IASB and the FASB deal with financial instruments differently,” says Andre de Haan, a partner with Ernst & Young. “This situation will result in a continued lack of uniformity as countries pick and choose approaches they feel are best for them. That defeats the very concept of International Financial Reporting Standards (IFRS).”

This will be particularly relevant for Canada’s financial institutions, he explains, which—along with all Canadian public companies—will have to follow IFRS commencing 2011.

“We’ll be dealing with financial instruments in a very different way than the U.S.—our neighbour and most important trade partner. That leaves Canadian organizations in an awkward and complicated spot.”

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Scotiabank’s commodity price index rebounds

After taking a few step back in July, Scotiabank is hitting its stride once again. The bank’s Commodity Price Index (CPI) rose 3.5% month-over-month in August, climbing 6.7% above the cyclical low in April.

“Base metal prices have already returned to profitable ‘mid-cycle’ levels, a development normally taking several years following the end of a global downturn and a testimony to the resiliency and growing importance of China and ’emerging’ Asia, including India, in the world economy,” says Patricia Mohr, vice-president, economics and commodity market specialist with Scotiabank.

China’s imports of copper, zinc and nickel were at record levels through the first half of 2009. This not only reflects strategic stockpiling by China’s State Reserve Bureau but also strength in underlying demand. China’s copper consumption climbed by an extraordinary 25% in volume terms in the first half of 2009, excluding inventory building by either government or fabricators, and by an even bigger 48% if inventory accumulation is included.

Gold prices, which surged to a near-term high of US $1,024 per ounce in intraday trading on Sept.18 are also being monetized by renewed bouts of U.S. dollar weakness and calls for development of a new reserve currency.

The Metal and Minerals Index led the overall gain in Scotiabank’s CPI in August surging 8.1%, month over month, with widespread gains in base and precious metals and steel alloy prices (molybdenum and cobalt) and more than offsetting slight declines in potash, sulphur and uranium prices.

Copper is among Mohr’s top commodity market picks for investors over the next five years. London Metals Exchange copper prices have more than doubled from a low of only US$1.26 per pound on Dec. 24, 2008 to a peak of US$2.94 on Aug. 28, 2009 before retreating back to US$2.67 in late September. Copper will continue to outperform other base metals, given under investment in new capacity during the last cyclical peak in 2007-commodity and industry performance, as well as monetary, fiscal and public policy issues.

(09/29/09)