Briefly:

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(December 22, 2008) Consumers are continuing to watch their wallets. The Index of Consumer Confidence fell for the third consecutive month to 67.7, according to the Conference Board of Canada. This is down 3.3 points from last month.

“Only during the recession of 1981–82 have we seen lower levels of confidence,” said Glen Hodgson, senior vice-president and chief economist. “Despite the rapid fall in gasoline prices across the country, consumers continue to be gloomy about their financial situation.”

On the bright side, however, consumers believe this is an opportune time to purchase a big-ticket item like a car or flat-screen television.

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(December 22, 2008) J.P. Morgan to acquire UBS’s Canadian energy, agricultural businesses

J.P. Morgan is to acquire UBS Commodities Canada, the Canadian energy operations of UBS AG, as well as the firm’s global agricultural business.

Calgary-based UBS Commodities Canada will become an indirect, wholly owned subsidiary of J.P. Morgan. It will be run by Brian Cumming, a managing director most recently based in J.P. Morgan’s London, U.K., office.

J.P. Morgan will also acquire UBS’s global agricultural business, which includes a London-based trading and marketing team.

“We continue to take advantage of opportunities that will further enhance and diversify our global commodities business,” says Blythe Masters, head of global commodities with J.P. Morgan. “The addition of these businesses and talented teams further expands our North American energy franchise and provides further depth to our growing agricultural and soft commodities platform.”

Full terms of the deal have not been disclosed.

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The rise and fall of commodities: Report

(December 22, 2008) Commodities will continue to fall over the next six months, but gold and potash are expected to outperform, according to a Scotiabank report on commodities.

“The shift from boom to bust in many commodities has been the most rapid in the history of the Scotiabank Commodity Price Index, with data back to 1972, magnified by the exit of hedge and investment funds from commodity market investments as well as a rapid markdown in anticipated global growth from 5% in 2006–2007 to only 1.5% for 2009,” says Patricia Mohr, vice-president, economics, and commodity market specialist at Scotiabank. “A spiralling down in business and consumer confidence, the intensifying credit crunch and a sharp, sudden slowdown in global auto sales and G7 housing have contributed to the rapid deceleration, as has recent data from China indicating a marked deceleration in industrial activity.”

Scotiabank’s Commodity Price Index, which measures price trends in 32 of Canada’s major exports, lost ground for the fourth consecutive month. The index reached a record high in July but then decreased by 35.4% through November.

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CI Financial converts back to corporation

(December 22, 2008) CI Financial Income Fund has received approval from an Ontario Superior Court of Judge to convert back to a corporation on January 1, 2009.

CI will be renamed CI Financial Corp. and its common shares will trade under the symbol CIX on the TSX on or about January 5, 2009.

(12/22/08)