We Had It All, Just Like Bogie and Bacall” -Bertie Higgins
TSX Ends Little Changed
North American markets came under pressure from a worsening in the Ukraine-Russia crisis. On Friday the S&P/TSX composite index climbed 13.06 points to 15,304.24. But the Dow Jones industrials closed down 50.67 points to 16,662.91, while the Nasdaq gained 11.93 points to 4,464.93 and the S&P 500 index slipped 0.12 of a point to 1,955.06. Markets backed off after NATO said that Russian military vehicles crossed into Ukraine during the night and the Ukrainian president said most of the force was quickly destroyed by his troops. Russia denied any incursion. The report persuaded traders to seek safety but the Canadian dollar was higher amid strong revised jobs data. The loonie rose 0.12 of a cent to 91.84 cents US as Statistics Canada said the economy added 42,000 positions last month. The agency said earlier this week that it had discovered an error in its jobs data originally released last Friday showing the economy had added a meagre 200 jobs.
CRA Cracks Down On Biz Owners “Zapping” Sales Records
The consequences are about to get pricey for businesses using technology to avoid paying all of their taxes. After an eight-month awareness campaign about electronic suppression of sales software, new monetary penalties and criminal offences under the Excise Tax will come into effect in September. Revenue Minister Kerry-Lynne Findlay said that small and medium-sized businesses are the economic drivers of Canada. She says the underground economy does give an unfair advantage to those who show a lack of respect for Canada’s tax laws. ESS software or “zapper” software selectively deletes or changes sales transactions in point-of sale-systems like cash registers and business accounting systems. That means there is no record of the original transaction and the business is able to under-report their revenue and avoid paying the full share of their GST, HST and income taxes.
Market Update as of August 15 2014
The TSX closed at 15304, up 108 points or 0.71% over the past week. YTD the TSX is up 12.35%.
The DOW closed at 16663, up 109 points or 0.66% over the past week. YTD the DOW is up 0.52%.
The S&P closed at 1955, up 23 points or 1.19% over the past week. YTD the S&P is up 5.79%.
The Nasdaq closed at 4465, up 94 points or 2.15% over the past week. YTD the Nasdaq is up 6.89%.
Gold closed at 1306, down -6.00 points or -0.46% over the past week. YTD gold is up 8.47%.
Oil closed at 97.02, down -0.57 points or -0.58% over the past week. YTD oil is down -1.61%.
The USD/CAD closed at 1.089552, down -0.0078 points or -0.71% over the past week. YTD the USD/CAD is up 2.48%.
Sources: Bloomberg; Investment Executive; advisor.ca