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(May 15, 2007) Scotiabank expects the Canadian economy to grow only modestly at a rate of 2.3% this year. The downgrade in growth expectations remains centred on the manufacturing sector, which continues to struggle with intense international competition and a rise in the Canadian dollar.

“Given the moderation in U.S. growth now underway and the renewed strength in the Canadian dollar, further production cuts and factory job losses are likely in the coming months,” says Warren Jestin, chief economist, Scotiabank. “Looking further ahead, however, these cost-cutting measures, alongside an accelerated pace of business investment, should eventually put the sector on a firmer footing. It should also begin to narrow the wide performance gap between the manufacturing-dominated economies of Central Canada and the resource-rich Western provinces.”

Jestin does see tremendous growth potential in Canada’s resource sector, not just in oil and gas but as a world leader in alternative fuel production. He says success in this sector hinges on the country’s ability to afford environmentally friendly methods of extraction. This will be very difficult to do, though, while emerging super-economies like India and China continue to use fuels that have high greenhouse-gas emissions but are cheap to use.

At the provincial level, Scotiabank foresees British Columbia remaining near the top of the growth for this year and next, led by activity in its construction sector. Large-scale expansion in the oil sands will continue to spur growth in Alberta as the construction boom spills over into the non-resource and service sectors. Saskatchewan’s economy is also expected to have a strong year, growing by close to 3% because of strong support from the mining sector and the impact of increased North American bio-fuel production.

Ontario and Quebec are expected to lag behind the national average over the next two years as their strained manufacturing sectors continue to weigh on production. Scotiabank says Ontario’s large service and construction sectors will help keep the province moving ahead, while Quebec will benefit from expanded hydro investments.

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Altamira changes fund valuation dates

(May 15, 2007) Altamira Investment Services is changing the valuation date on a number of its mutual funds.

Eleven of Altamira’s funds, including the Global 20 Fund and the Global Value Fund, will change their valuation date to any day on which the Toronto Stock Exchange is open for trading. Currently these funds have their valuation dates pegged to other markets, such as the New York Stock Exchange.

Pending regulatory approval, the changes will be in effect as of the close of business on May 18, 2007. Altamira says the change will not impact unitholders.

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Co-operators names new CFO

(May 15, 2007) The Co-operators today announced the appointment of Bruce West as its senior vice-president and chief financial officer, effective June 4, 2007.

West has been in the industry for 25 years, spending 11 with London Life, eight with Clarica, and two years as Sun Life’s CFO for Canada. Most recently, he was chief financial officer for Canadian Tire Financial Services Limited and Canadian Tire Bank.

“I am very pleased that Bruce has agreed to join the Co-operators and fill this very important role,” said Kathy Bardswick, president and CEO of the Co-operators. “Clearly, given his achievements and his experience, we are fortunate to have Bruce joining our team.”

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(05/15/07)