Perspectives

Scotiabank economist Laura Gu is back to break down even more common and not-so-common economic terms you might be hearing in the news. We’re talking curves, yields, spreads, even Goldilocks. All in an effort to help you better understand the world of finance. Or just impress your friends. Looking for another vocabulary-expanding economic primer? Check out 11 economic terms to better understand the news. Key moments this episode:  1:07 — Term 1: Labour market 2:48 — Term 2: Phillips curve 3:58 — Term 3: Yield curve 6:41 — Term 4: Credit spreads 7:22 — Term 5: Secular stagnation 9:40 — Lightning round and term 6: Goldilocks economy 9:56 — Term 7: The overnight rate 10:24 — Terms 8, 9, 10, 11 and 12: Recession shapes — V-shaped, U-shaped, W-shaped, L-shaped and K-shaped 11:18 — Term 13: No landing 11:52 — Term 14: Immaculate disinflation 

For many people, a credit score is a mysterious thing. But that number can have a huge impact on our lives. Our guest in this episode is Laura Scheck, Vice President of Credit Cards at Scotiabank. She talks to Natalie Nanowski from our Perspectives Newsroom team to help bust some common myths around the credit score as well as explain the basics. What number is good, what’s bad, what will actually decrease your score and, of course, tips on how to improve it.  Key moments this episode: 1:24 — The “origin story” of the credit score 2:06 — What is a good credit score? 2:27 — Can you get a perfect credit score? 3:02 — How is a credit score calculated? 3:32 — Five main factors that impact credit scores 4:30 — The most common way to negatively impact your credit score 5:50 — Another common way people unknowingly decrease their score 7:04 — Can checking your own credit score negatively impact it? 8:33 — Is using your full credit card limit a bad thing for your credit score?  9:34 — Will taking a higher credit limit on your credit card affect your credit score? 10:31 — What are some ways to improve your credit score and how quickly can it be done? 11:36 — The best way for newcomers or students to build their credit 12:52 — Have attitudes changed from generation to generation when it comes to credit? 13:40 — The biggest shift in the current credit landscape that Laura has noticed 14:52 — The biggest takeaways when it comes to credit scores 

We dissect the Bank of Canada’s decision to hold its key interest rate steady at 4.5%. Inflation is gradually coming down, the economy is still growing modestly, the labour market is strong. But Governor Tiff Macklem made clear that the job of bringing inflation down to the target rate isn’t done yet, and warned he’s willing to raise interest rates again if necessary to get there. Scotiabank Chief Economist Jean-François Perrault returns to the podcast to explain the Bank’s announcement, assess the current economic situation, and look ahead to what we can expect on the recession and interest rate fronts. (Spoiler alert: He says rates will eventually come down, but probably not this year.)   Key moments this episode: 1:03 — The big takeaway from the announcement today 1:26 — What is the Bank of Canada trying to signal? 2:59 — What can we expect in the months ahead? 4:38 — Is Macklem signalling that there won’t be rate cuts anytime soon? 5:22 — What about a potential recession? 7:03 — If there is a recession, will it be a soft landing? 7:54 — Where do we go from here in terms of inflation? 

The currency market is the largest financial market in the world. It turns over trillions and trillions of dollars every day. But what exactly is it? This episode is all about making sense of the currency market, also known as the foreign exchange market or FX for short. Our guest, Shaun Osbourne, Managing Director and Chief Currency Strategist at Scotiabank explains what makes these markets go up and down, what role the exchange rate has when it comes to inflation, where the Canadian dollar might be headed and much more.   Key moments this episode: 1:33 — Why do currencies go up and down? 2:28 — Why the currency market is the “purest form of the market” 3:19 — How do investors or institutions use the currency market? 6:23 — A quick history lesson about the gold standard 7:39 — Why is the U.S. dollar the currency in which others are judged?  10:13 — Why wouldn’t countries like Canada just use the U.S. dollar as its currency? 11:59 — Decoding the currency ticker 12:40 — Breaking down why the Canadian dollar dropped in the past year 14:27 — Who benefits when the Canadian dollar is low? Who likes it when it’s high? 16:19 — Ballparking a ‘Goldilocks’ rate for the Canadian dollar 16:36 — Where might the Canadian dollar go in the next six months? 

Canada’s Indigenous Peoples face unique financial barriers, especially when it comes to accessing capital or credit. In this episode, our guest is Jon Davey, the Vice President of Indigenous Financial Services at Scotiabank. He’ll explain the root of the challenges that still exist for Indigenous-owned businesses as well as success stories he’s seen when it comes to economic reconciliation and how that can help unlock “Canada’s competitive advantage.” Also, how the advice his father gave him about taking pride in his Haudenosaunee heritage still informs the work he does today.  Key moments this episode: 1:30 — Why does a bank need Indigenous Financial Services?  3:46 — What are some of the unique challenges that only Indigenous businesses face? 5:59 — Are people aware of these limitations outside of the Indigenous community? 8:03 — Understanding the roots and economic implications of Canada’s Indian Act 10:02 — Why navigating Indigenous economic regulations can be so difficult 12:37 — Why starting a business on reserve despite the hurdles is so necessary  14:34 — Is business a component of reconciliation?  17:02 — Success stories Jon has seen  19:16 — How Jon’s Haudenosaunee heritage influences his work

On Tuesday, the federal government will table its 2023 budget. Armina Ligaya chats with Rebekah Young, Vice President and Head of Inclusion and Resilience Economics at Scotiabank, to explore what key themes are predicted, where we might see spending, how much and why —and go over some remaining question marks.Key moments this episode: 00:26 — The four big themes we’re likely to see 1:40 — How this year’s budget may differ from last year 3:16 — Unpacking the main themes – affordability 6:47 — What will this new spending mean for the bottom line? 8:37 — What will we see in regards to the green economy?9:43 — What is the Inflation Reduction Act and how does it affect Canada? 12:15 — How will healthcare spending play into the budget? 14:18 — Is there anything we might not see that we expected to? 16:30 — Rebekah gives us some insight into the budget day media lock up 

A cognitive bias, or psychological bias, is like a subconscious trick your brain plays on you that might cloud your judgment. When it comes to investing, there’s a unique set of cognitive biases that could prevent you from making rational decisions with your money. Andy Nasr, the Chief Investment Officer at Scotia Wealth Management, is back to break down five common investing biases and how you can avoid them.Key moments this episode: 1:30 — Before we start, Stephen has to get something important off his chest with Andy2:03 — What is a psychological bias when it comes to investing? 3:30 — Investing bias #1: overconfidence  5:35 — Investing bias #2: regret aversion 11:34 — Investing bias #3: herding 12:37 — Investing bias #4: being overwhelmed by options 15:47 — Investing bias #5: the endowment effect 17:24 — The most important takeaway when it comes to looking at these biases 

As widely expected, the Bank of Canada today held its policy interest rate steady at 4.5%. It’s welcome relief for Canadians after a year of consecutive rate hikes. The central bank made good on its word back in January, when Governor Tiff Macklem said it was taking a “conditional pause” on interest rate hikes amid signs that inflation was slowing. Scotiabank’s Chief Economist Jean-François Perrault returns to chat with Armina Ligaya from the Perspectives newsroom team and break down how long this pause may last, when we could see rates begin to drop and why the U.S. central bank’s anticipated hikes may have a ripple effect on the Bank of Canada. 

A few episodes back, we talked about how to broach the subject of finances with your parents. Dr. Amy D’Aprix, a consultant for The Scotiabank Women Initiative, author, and speaker, is back again, this time to help us talk about money with our kids or young family members, because they start learning about money sooner than you think. And with International Women’s Day right around the corner, she also tells us why these conversations are especially important to have with our daughters or young women in our lives. The Scotiabank Women Initiative aims to help women break down barriers – including how to manage their financial futures. For more information please visit www.scotiabankwomeninitiative.com.  Key moments this episode:  1:55 — “What are you doing leaving the fridge door open?!” How money was typically talked about in households 2:48 — How that conversation has changed over the years 3:35 — A telling stat about how talking about money early can help in adulthood 4:35 — When should you start talking to kids about money? It might be younger than you think. 5:29 — Some tips and examples on making the conversation fun for kids 6:36 — Why “more is caught than taught” when it comes to money 7:36 — What is the ultimate goal of these conversations? 7:46 — Some interesting facts on why this topic is especially important for daughters 9:22 — Confidence vs. competence when it comes to money 10:01 — How the messages to girls and women today are still different   10:55 — How to best empower young women when it comes to money 12:24 — Does it matter who the lessons come from? 13:02 — “I don’t feel confident around money, how can I teach my kids?”  14:14 — A recap of the key takeaways Here are some other resources around kids and money from Scotiabank’s Advice+ page: How to teach your kids about budgeting and saving  How to teach your kids about financial safety  Talk to your kids about money, credit and interest  5 financial tools to teach kids about money   

Illegal wildlife trade is estimated to generate more than US$20 billion every year. That adds up to a lot of illicit financial transactions. That’s why a new initiative called Project Anton brings together not only law enforcement, NGOs and governments but also banks to help clamp down on illegal wildlife trade. Stuart Davis is Executive Vice President of Financial Crimes Risk Management & Group Chief Anti-Money Laundering Officer at Scotiabank. He’s our guest this episode and tells us about this new project, what exactly wildlife crime looks like and the role a bank plays in preventing it. Read more about illegal wildlife trade and Scotiabank’s partnership with United for Wildlife.  Key moments this episode: 0:02 — The story of wildlife ranger and conservationist Anton Mzimba 1:26 — What exactly is illegal wildlife trade? 2:07 — How big the problem really is 2:51 — Why are animals illegally trafficked?  3:33 — What is a zoonotic disease?  3:56 — Where does this trade take place? What about in Canada? 4:56 — The surprising ways these animals can be smuggled 5:37 — How did the Bank become involved in preventing these crimes? 6:23 — How the Bank helps crack down on illegal wildlife trade 9:19 — What is the United for Wildlife’s financial task force? 10:33 — What exactly does Project Anton do? 12:51 — More about the late Anton Mzimba