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New Report by Richard Florida Confirms Benefits of Downtown Airports

New Report by Richard Florida Confirms Benefits of Downtown Airports
Canada NewsWire
TORONTO, Jan. 24, 2023

Study focuses on Billy Bishop Airport and its impact in shaping Toronto’s recovery and opportunity
TORONTO, Jan. 24, 2023 /CNW/ –  A central…

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New Report by Richard Florida Confirms Benefits of Downtown Airports

Canada NewsWire

Study focuses on Billy Bishop Airport and its impact in shaping Toronto's recovery and opportunity

TORONTO, Jan. 24, 2023 /CNW/ -  A centrally located, city airport is critical to Toronto's continued growth and ambitions, states a new report published by PortsToronto and authored by respected urbanist and University of Toronto Professor, Dr. Richard Florida. The report, titled, Toronto's Downtown Airport: A Powerful Economic Asset in the City's Urban Core, notes that city airports, like Billy Bishop Toronto City Airport, support businesses, provide connectivity and unlock opportunities that make a city world class. These airports also have a key role in building knowledge economies, playing a critical role in the circulation of people and ideas.

The report comes at a time when both Toronto and its downtown airport are at an inflection point. Both are emerging from the pandemic, and as thought goes into what the needs of Toronto will be in the coming decades, consideration should also be given to the role Billy Bishop Airport can play in building the global city that Toronto aspires to be.

"Billy Bishop is central to Toronto's prosperity," states Dr. Richard Florida. "It brings tourists and much needed revenue to the city and its urban core, which are still recovering from the pandemic," he adds. "More importantly, it provides a direct gateway to leading cities such as New York, Washington, D.C., Boston, and Chicago, bolstering Toronto's role as a global talent and tech hub."

The report is available here and highlights the numerous benefits that Billy Bishop Airport brings to Toronto, including:

  • Providing the city with a unique competitive advantage, placing travellers close to the downtown commercial centre and its cultural amenities — threatened as they are by the shift to remote work and decreased office occupancy.
  • Billy Bishop Airport is among the largest providers of good, high-paying blue-collar jobs for city residents and workers – jobs that are otherwise declining and in increasingly short supply. Airports also generate significant demand for local services, which in turn create more and better jobs for lower-paid service workers in surrounding retail establishments, hotels, and office facilities.
  • Billy Bishop Airport is projected to have added roughly $3 billion dollars to Toronto's economy in 2022, up from $2.1 billion in 2019, and an amount which is expected to grow to nearly $4.8 billion by 2025.
  • According to a 2022 survey, 85 per cent of Toronto residents "agree" that "Billy Bishop Toronto City Airport is a valuable asset for the entire city". A majority of Torontonians also agreed that Billy Bishop Airport is a good use of land (82%); that it makes sense to have an airport downtown (85%); and that the airport plays a central role for business, health care, and job creation for the city (78%).

Additional Quotes

RJ Steenstra, President & CEO PortsToronto, Owner and Operator of Billy Bishop Toronto City Airport 
By all metrics, Billy Bishop Toronto City Airport is an asset and a vital piece of transportation infrastructure that can propel the City of Toronto forward. More specifically, Billy Bishop Airport is a key economic driver; a creator of jobs, a connector of people and businesses; an enabler of tourism; a provider of vital healthcare through Ornge; and a good neighbour, making investments in sustainability and community. The City of Toronto is at an inflection point where it needs to shake-off the pandemic declines, and re-entrench itself as a world-class city. Billy Bishop Airport is on a similar journey and is eager to work with the City of Toronto and the Federal Government on a future vision for the airport.

Dr. Richard Florida, Professor of Economic Analysis and Policy, Rotman School of Management; Co-founder of CityLab; and Founder of the Creative Class Group 
There are few better symbols of Toronto's aspirations as an economically and socially diverse global city than having a leading-edge, environmentally sustainable airport that fits seamlessly into the waterfront and serves as a vital anchor for its vibrant downtown. Both the city and the airport are at an inflection point in terms of optimizing infrastructure and making the intellectual investment to be world-class. The airport is an undeniable asset to the City of Toronto and region and should be regarded as such. This means demonstrating the leadership and vision to recognize the impact the airport already makes in terms of economic gain, connectivity, support of healthcare and driver of tourism and trade; but also to take action to secure and optimize the future potential of this airport to embrace new technology, enhanced sustainability and balanced growth. Downtown airports are valuable assets to any city in any part of the world. Toronto is fortunate to have had a downtown airport for the last 80+ years, and should be looking at ensuring it is here for the next 80 years or more to support what this city should and can be.

Neil Pakey, President and CEO, Nieuport Aviation, Billy Bishop Airport Terminal Owner and Operator 
A cleaner, greener, quieter downtown airport is an exciting part of Toronto's future as a global city. Now, with the release of the Richard Florida Report, we begin the important task of mapping out that future for Billy Bishop Airport. For many years YTZ has been of critical importance to the City in particular when considering its' rising economic impact. It gives our customers a convenient, easy and friendly airport experience from the heart of the city, and inbound visitors to Toronto an incredible first impression of the City. This report confirms that having a downtown airport, with its simple and quick access to everything in Toronto is a competitive advantage that should continue to be celebrated. Now is the time to lock in Billy Bishop Airport's future as a world-class downtown airport and as a gateway for a world-class city.

Stephen Lund, CEO, Toronto Global 
The importance of Billy Bishop Airport to the Toronto Region economy and value proposition cannot be overstated," said Stephen Lund, CEO, Toronto Global. "Downtown airports provide cities with unique competitive advantages, enabling connections with other leading global centres, and our downtown airport offers unmatched connectivity with the centre of Canada's business and financial hub. As we compete with cities like New York, London and San Francisco for global talent and high tech business, air connectivity is a critical part of this equation.

Offering service to more than 20 cities in Canada and the U.S., with connection opportunities to more than 80 international destinations via our airlines' networks, Billy Bishop Airport is an important international gateway and a key driver to Toronto's economy which traditionally welcomes approximately 2.8 million passengers per year. Billy Bishop Airport is renowned for its unique travel experience, efficiency and customer service and has won a series of passenger-driven awards. With a focus on cleaner, greener and quieter operations, Billy Bishop Toronto City Airport has made significant upgrades in recent year to achieve its sustainability goals which are reported on an annual basis. Billy Bishop Airport is owned and operated by PortsToronto.

For more than 100 years PortsToronto has worked with its partners at the federal, provincial and municipal levels to enhance the economic growth of the City of Toronto and the Greater Toronto Area. PortsToronto owns and operates Billy Bishop Toronto City Airport, which welcomed approximately 2.8 million passengers in 2019; the Outer Harbour Marina, one of Canada's largest freshwater marinas; and the marine Port of Toronto that includes businesses in a variety of sectors including marine shipping, cargo services, media production and passenger cruises. PortsToronto is committed to fostering strong, healthy and sustainable communities and has invested more than $14 million since 2009 in charitable initiatives and environmental programs that benefit communities along Toronto's waterfront and beyond. PortsToronto operates in accordance with the Canada Marine Act and is guided by a board with representation from all three levels of government.

SOURCE PortsToronto

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Schedule for Week of January 29, 2023

The key reports scheduled for this week are the January employment report and November Case-Shiller house prices.Other key indicators include January ISM manufacturing and services surveys, and January vehicle sales.The FOMC meets this week, and the FO…

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The key reports scheduled for this week are the January employment report and November Case-Shiller house prices.

Other key indicators include January ISM manufacturing and services surveys, and January vehicle sales.

The FOMC meets this week, and the FOMC is expected to announce a 25 bp hike in the Fed Funds rate.

----- Monday, January 30th -----

10:30 AM: Dallas Fed Survey of Manufacturing Activity for January. This is the last of the regional Fed manufacturing surveys for January.

----- Tuesday, January 31st -----

9:00 AM: FHFA House Price Index for November. This was originally a GSE only repeat sales, however there is also an expanded index.

9:00 AM ET: S&P/Case-Shiller House Price Index for November.

This graph shows the Year over year change in the nominal seasonally adjusted National Index, Composite 10 and Composite 20 indexes through the most recent report (the Composite 20 was started in January 2000).

The consensus is for a 6.9% year-over-year increase in the Comp 20 index.

9:45 AM: Chicago Purchasing Managers Index for January. The consensus is for a reading of 44.9, down from 45.1 in December.

10:00 AM: The Q4 Housing Vacancies and Homeownership report from the Census Bureau.

----- Wednesday, February 1st -----

7:00 AM ET: The Mortgage Bankers Association (MBA) will release the results for the mortgage purchase applications index.

8:15 AM: The ADP Employment Report for January. This report is for private payrolls only (no government). The consensus is for 170,000 payroll jobs added in January, down from 235,000 added in December.

10:00 AM: Construction Spending for December. The consensus is for a 0.1% decrease in construction spending.

Job Openings and Labor Turnover Survey10:00 AM ET: Job Openings and Labor Turnover Survey for December from the BLS.

This graph shows job openings (black line), hires (purple), Layoff, Discharges and other (red column), and Quits (light blue column) from the JOLTS.

Job openings decreased in November to 10.458 million from 10.512 million in October

10:00 AM: ISM Manufacturing Index for January. The consensus is for the ISM to be at 48.0, down from 48.4 in December.

2:00 PM: FOMC Meeting Announcement. The FOMC is expected to announce a 25 bp hike in the Fed Funds rate.

2:30 PM: Fed Chair Jerome Powell holds a press briefing following the FOMC announcement.

Vehicle SalesAll day: Light vehicle sales for January. The consensus is for light vehicle sales to be 14.3 million SAAR in January, up from 13.3 million in December (Seasonally Adjusted Annual Rate).

This graph shows light vehicle sales since the BEA started keeping data in 1967. The dashed line is the December sales rate.

----- Thursday, February 2nd -----

8:30 AM: The initial weekly unemployment claims report will be released.  The consensus is for 200 thousand initial claims, up from 186 thousand last week.
----- Friday, February 3rd -----

Employment Recessions, Scariest Job Chart8:30 AM: Employment Report for December.   The consensus is for 185,000 jobs added, and for the unemployment rate to increase to 3.6%.

There were 223,000 jobs added in December, and the unemployment rate was at 3.5%.

This graph shows the job losses from the start of the employment recession, in percentage terms.

The pandemic employment recession was by far the worst recession since WWII in percentage terms. However, as of August 2022, the total number of jobs had returned and are now 1.24 million above pre-pandemic levels.

10:00 AM: ISM Manufacturing Index for January. The consensus is for the ISM to be at 50.3, up from 49.6 in December.

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US gov’t $1.5T debt interest will be equal 3X Bitcoin market cap in 2023

The U.S. will pay over $1 trillion in debt interest next year, the equivalent of three or more Bitcoin market caps at current prices.

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The U.S. will pay over $1 trillion in debt interest next year, the equivalent of three or more Bitcoin market caps at current prices.

Commentators believe that Bitcoin (BTC) bulls do not need to wait long for the United States to start printing money again.

The latest analysis of U.S. macroeconomic data has led one market strategist to predict quantitative tightening (QT) ending to avoid a “catastrophic debt crisis.”

Analyst: Fed will have “no choice” with rate cuts

The U.S. Federal Reserve continues to remove liquidity from the financial system to fight inflation, reversing years of COVID-19-era money printing.

While interest rate hikes look set to continue declining in scope, some now believe that the Fed will soon have only one option — to halt the process altogether.

“Why the Fed will have no choice but to cut or risk a catastrophic debt crisis,” Sven Henrich, founder of NorthmanTrader, summarized on Jan. 27.

“Higher for longer is a fantasy not rooted in math reality.”

Henrich uploaded a chart showing interest payments on current U.S. government expenditure, now hurtling toward $1 trillion a year.

A dizzying number, the interest comes from U.S. government debt being over $31 trillion, with the Fed printing trillions of dollars since March 2020. Since then, interest payments have increased by 42%, Henrich noted.

The phenomenon has not gone unnoticed elsewhere in crypto circles. Popular Twitter account Wall Street Silver compared the interest payments as a portion of U.S. tax revenue.

“US paid $853 Billion in Interest for $31 Trillion Debt in 2022; More than Defense Budget in 2023. If the Fed keeps rates at these levels (or higher) we will be at $1.2 trillion to $1.5 trillion in interest paid on the debt,” it wrote.

“The US govt collects about $4.9 trillion in taxes.”
Interest rates on U.S. government debt chart (screenshot). Source: Wall Street Silver/ Twitter

Such a scenario might be music to the ears of those with significant Bitcoin exposure. Periods of “easy” liquidity have corresponded with increased appetite for risk assets across the mainstream investment world.

The Fed’s unwinding of that policy accompanied Bitcoin’s 2022 bear market, and a “pivot” in interest rate hikes is thus seen by many as the first sign of the “good” times returning.

Crypto pain before pleasure?

Not everyone, however, agrees that the impact on risk assets, including crypto, will be all-out positive prior to that.

Related: Bitcoin ‘so bullish’ at $23K as analyst reveals new BTC price metrics

As Cointelegraph reported, ex-BitMEX CEO Arthur Hayes believes that chaos will come first, tanking Bitcoin and altcoins to new lows before any sort of long-term renaissance kicks in.

If the Fed faces a complete lack of options to avoid a meltdown, Hayes believes that the damage will have already been done before QT gives way to quantitative easing.

“This scenario is less ideal because it would mean that everyone who is buying risky assets now would be in store for massive drawdowns in performance. 2023 could be just as bad as 2022 until the Fed pivots,” he wrote in a blog post this month.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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Stay Ahead of GDP: 3 Charts to Become a Smarter Trader

When concerns of a recession are front and center, investors tend to pay more attention to the Gross Domestic Product (GDP) report. The Q4 2022 GDP report…

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When concerns of a recession are front and center, investors tend to pay more attention to the Gross Domestic Product (GDP) report. The Q4 2022 GDP report showed the U.S. economy grew by 2.9% in the quarter, and Wall Street wasn't disappointed. The day the report was released, the market closed higher, with the Dow Jones Industrial Average ($DJIA) up 0.61%, the S&P 500 index ($SPX) up 1.1%, and the Nasdaq Composite ($COMPQ) up 1.76%. Consumer Discretionary, Technology, and Energy were the top-performing S&P sectors.

Add to the GDP report strong earnings from Tesla, Inc. (TSLA) and a mega announcement from Chevron Corp. (CVX)—raising dividends and a $75 billion buyback round—and you get a strong day in the stock markets.

Why is the GDP Report Important?

If a country's GDP is growing faster than expected, it could be a positive indication of economic strength. It means that consumer spending, business investment, and exports, among other factors, are going strong. But the GDP is just one indicator, and one indicator doesn't necessarily tell the whole story. It's a good idea to look at other indicators, such as the unemployment rate, inflation, and consumer sentiment, before making a conclusion.

Inflation appears to be cooling, but the labor market continues to be strong. The Fed has stated in many of its previous meetings that it'll be closely watching the labor market. So that'll be a sticky point as we get close to the next Fed meeting. Consumer spending is also strong, according to the GDP report. But that could have been because of increased auto sales and spending on services such as health care, personal care, and utilities. Retail sales released earlier in January indicated that holiday sales were lower.

There's a chance we could see retail sales slowing in Q1 2023 as some households run out of savings that were accumulated during the pandemic. This is something to keep an eye on going forward, as a slowdown in retail sales could mean increases in inventories. And this is something that could decrease economic activity.

Overall, the recent GDP report indicates the U.S. economy is strong, although some economists feel we'll probably see some downside in 2023, though not a recession. But the one drawback of the GDP report is that it's lagging. It comes out after the fact. Wouldn't it be great if you had known this ahead of time so you could position your trades to take advantage of the rally? While there's no way to know with 100% accuracy, there are ways to identify probable events.

3 Ways To Stay Ahead of the Curve

Instead of waiting for three months to get next quarter's GDP report, you can gauge the potential strength or weakness of the overall U.S. economy. Steven Sears, in his book The Indomitable Investor, suggested looking at these charts:

  • Copper prices
  • High-yield corporate bonds
  • Small-cap stocks

Copper: An Economic Indicator

You may not hear much about copper, but it's used in the manufacture of several goods and in construction. Given that manufacturing and construction make up a big chunk of economic activity, the red metal is more important than you may have thought. If you look at the chart of copper futures ($COPPER) you'll see that, in October 2022, the price of copper was trading sideways, but, in November, its price rose and trended quite a bit higher. This would have been an indication of a strengthening economy.

CHART 1: COPPER CONTINUOUS FUTURES CONTRACTS. Copper prices have been rising since November 2022. Chart source: StockCharts.com. For illustrative purposes only.

High-Yield Bonds: Risk On Indicator

The higher the risk, the higher the yield. That's the premise behind high-yield bonds. In short, companies that are leveraged, smaller, or just starting to grow may not have the solid balance sheets that more established companies are likely to have. If the economy slows down, investors are likely to sell the high-yield bonds and pick up the safer U.S. Treasury bonds.

Why the flight to safety? It's because when the economy is sluggish, the companies that issue the high-yield bonds tend to find it difficult to service their debts. When the economy is expanding, the opposite happens—they tend to perform better.

The chart below of the Dow Jones Corporate Bond Index ($DJCB) shows that, since the end of October 2022, the index trended higher. Similar to copper prices, high-yield corporate bond activity was also indicating economic expansion. You'll see similar action in charts of high-yield bond exchange-traded funds (ETFs) such as iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and SPDR Barclays High Yield Bond ETF (JNK).

CHART 2: HIGH-YIELD BONDS TRENDING HIGHER. The Dow Jones Corporate Bond Index ($DJCB) has been trending higher since end of October 2022.Chart source: StockCharts.com. For illustrative purposes only.

Small-Cap Stocks: They're Sensitive

Pull up a chart of the iShares Russell 2000 ETF (IWM) and you'll see similar price action (see chart 3). Since mid-October, small-cap stocks (the Russell 2000 index is made up of 2000 small companies) have been moving higher.

CHART 3: SMALL-CAP STOCKS TRENDING HIGHER. When the economy is expanding, small-cap stocks trend higher.Chart source: StockCharts.com. For illustrative purposes only.

Three's Company

If all three of these indicators are showing strength, you can expect the GDP number to be strong. There are times when the GDP number may not impact the markets, but, when inflation is a problem and the Fed is trying to curb it by raising interest rates, the GDP number tends to impact the markets.

This scenario is likely to play out in 2023, so it would be worth your while to set up a GDP Tracker ChartList. Want a live link to the charts used in this article? They're all right here.


Jayanthi Gopalakrishnan

Director, Site Content

StockCharts.com

 

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

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