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(July 29, 2008) Small business owners who want to invest in lowering their firms’ impact on the environment may qualify for an interest-only term loan, now on offer from TD Canada Trust.

The loan program, which allows the borrower to defer principal payments for up to 12 months, is also available for investments aimed at raising productivity.

“The interest-only term loan is the ideal solution for businesses who want to upgrade or go green. It provides the financial flexibility and breathing space they need until they can get their new equipment into production,” said Nick Stitt, VP, business banking, TD Canada Trust.

To qualify for the interest-only option, the business must have been in operation for at least two years and must meet the bank’s usual requirements for a loan of between $10,000 and $500,000.

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Commodities rose in June

(July 29, 2008) Commodity prices continued to rise in June, according to the latest reading of Scotiabank’s Commodity Price Index. The overall index for Canada’s top 32 commodity exports rose by 1.2%, making it the sixth consecutive month of gains.

The All Items Index is now 212.6% above the cyclical low in October 2001.

Oil and gas prices were the drivers of the gain, with the energy sub-index rising by 5% in the month, or 71.7% on a year-over-year basis. But that upward trajectory should change course for the July reading.

“Oil prices have retreated to the $124 US mark in late July, still 67% above a year earlier,” said Patricia Mohr, vice-president, economics, and commodity market specialist at Scotiabank. “Market attention has shifted from concerns over geopolitical supply risks and disappointingly slow new oil field development to heightened concern over U.S. economic prospects, following the fed chairman’s semi-annual monetary policy report to Congress, and easing U.S. petroleum consumption in reaction to record oil prices.”

Prices could decline even more as new projects come online, bringing more supply to market in the second half of 2008. It is hoped that two oil sands projects in Alberta — the Horizon project and the Long Lake project — will offset declining production in Russia, the North Sea and Mexico.

The metals and minerals index declined in June, falling 0.8%, as almost all base metals fell in value, with aluminum being the sole gainer. Some non-metallic minerals posted gains, with sulphur climbing to $750 US per tonne at the port of Vancouver, up from $660 US in May.

Potash prices remained steady at $525 US per tonne in June but have since jumped to $762.50 US. The spot price for delivered, standard-grade potash is expected to hit $1,000 US in the fourth quarter.

On a related note, agricultural commodity prices tumbled 4.4% in June, but the sub-index remains 39.6% higher than it was in June 2007. European growers are expecting a bumper crop of wheat this summer, while global planting increased as a reaction to higher prices seen in February.

“U.S. corn futures have also tumbled on the Chicago Board of Trade, from a record $7.55 US per bushel on June 27 to $5.73 US on July 25, alongside lower oil prices and as ideal Midwest weather boosted crop prospects, after the worst flooding in 15 years,” said Mohr. “While these developments have soothed concern over food price inflation, prices remain well above year-ago levels. The grain complex will rally seasonally later in 2008, with oilseeds expected to outperform.”

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AIM Trimark alters global fund’s objective

(July 29, 2008) AIM Trimark Investments has announced it has received shareholder approval to amend the investment objectives of AIM Global Growth Class, effective August 11, 2008.

The language used to describe the investment objectives will be altered to better articulate the approach of the fund’s management team, which assumed responsibility of the fund on October 15, 2007.

The statement will no longer specify the industry sectors in which the fund will invest, with the objective now being to provide long-term capital growth by investing primarily in global equities.

(07/29/08)