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(September 20, 2006) The U.S. Federal Reserve has left its key overnight lending rate unchanged at 5.25%, but says it’s keeping a close eye on inflation.

“The moderation in economic growth appears to be continuing, partly reflecting a cooling of the housing market,” the Fed said in a statement. “Readings on core inflation have been elevated, and the high levels of resource utilization and of the prices of energy and other commodities have the potential to sustain inflation pressures.”

While risks remain, inflation pressures seem likely to moderate over time, the Fed committee added. After 17 straight hikes, the Fed has held rates steady since August.</p.

The Bank of Canada’s interest rate currently stands at 4.25%, with the next announcement scheduled for October 17.

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TD Canada Trust unveils new GIC

(September 20, 2006) TD Canada Trust has introduced an index-linked GIC, called Security GIC Plus. The bank says the new offering combines the security of a conventional GIC with the potential growth of the S&P/TSX Banks Index and S&P/TSX Capped Utilities Index.

“This can be an ideal option for consumers who want the peace of mind of a guaranteed return with the potential to earn even more,” said TD Canada Trust associate vice-president Mushtak Najarali. “The Security GIC Plus allows conservative investors to gain exposure to Canadian stock markets without risk of capital loss and, unlike most other index-linked GICs, the Security GIC Plus offers a guaranteed minimum return.”

The minimum guaranteed interest return is 8% over three years and 13% over five years. The amount of the bonus interest return, if any, depends on the change over the term of the GIC in the S&P/TSX Banks Index and the S&P/TSX Capped Utilities Index, with a 50% weighting to each index. The bonus is capped at 15% for the three-year term and 38% for the five year.

Minimum investment is $1,000 for non-registered accounts and $500 for RSP accounts. The GIC is not redeemable prior to maturity and is now being sold in TD Canada Trust branches.

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MFC Global promotes from within

(September 20, 2006) MFC Global Investment Management, a division of Manulife Financial, has named Warren Thomson as its executive vice-president.

Thomson, who was the Boston-based firm’s executive vice-president for U.S. fixed income, will be responsible for continuing the growth of MFC Global’s asset management business, both in North America and overseas.

“We’re very pleased to have Warren’s investment and leadership skills in place as we continue to build on MFC Global’s rapid growth and momentum,” said MFC Global CEO Donald Guloien. “Our business is growing as we continue to strengthen our investment management teams and operations on the ground around the world and offer top performing products for our clients.”

MFC Global has more than $230 billion in assets under management.

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CanDeal, Thomson to offer Canadian debt trading in Europe

(September 20, 2006) European institutional investors will have access to online Canadian debt-securities trading as part of a program announced on Wednesday by CanDeal and Thomson TradeWeb.

Under the agreement, European clients can now trade Government of Canada Bonds and T-Bills, Provincial Bonds and Canada Mortgage and Housing Bonds.

The CanDeal network includes 12 firms: TD Securities; RBC Capital Markets; CIBC World Market; Scotia Capital; BMO Nesbitt Burns; National Bank Financial; HSBC (Canada); Casgrain & Company; Laurentian Bank Securities; Desjardins Securities; Merrill Lynch Canada; and JP Morgan Securities Canada.

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Gmarkets to deliver market data to IIAC members

(September 20, 2006) Gmarkets, a Toronto-based financial information company, has agreed to deliver real-time market data to members of the Investment Industry Association of Canada (IIAC) at preferred subscription rates.

Gmarkets’ flagship product, Gmarkets Pilot, provides real-time market data from a number of sources, covering fixed income, money markets, foreign exchange, derivatives, and rate fixings.

“Gmarkets Pilot is designed to help our members find the best all-round deal for their clients while managing market risk. We are pleased to work with Gmarkets to offer access to a high-quality real-time market data service at a special rate for our members,” said IIAC president Ian Russell.

Gmarkets and IIAC are also working together to survey perception of transparency in the Canadian debt markets for institutional and investment advisors.

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