Winnipeg Free Press

Winnipeg Free Press (Newspaper) - March 21, 2001, Winnipeg, Manitoba Breakfast 409 Ort Garry Call 94282 51 Winnipeg free press March 2001 b3 editor Julian Rachey 6977235 slashes rates a Hal Point by Jeannine Aversa Washington the fed eral Reserve slashed a key interest rate by a Hal Point hoping to encourage Ameri cans to spend and invest to revive a sluggish it marked the third time this year that the Central Bank Cut interest a move that Lowers borrowing costs and Aims to stimulate which eventually should boost economic All three reductions were on half it adds up to twice the size of rate cuts so far this year in but analysts said yesterdays fed moves leaves the Bank of Canada with More room to lower rates further to stimulate the Canadian which has also slowed considerably in the Wake of the in we expect the Bank to Fol fed Hopes lower borrowing costs boost Economy Low the fed with another half Point rate Cut at their meeting on april the Nesbitt Burns brokerage said in a report after the fed rate in Bank of Canada Gover nor David Dodge refused to speculate about further rate reductions but he told a business group yesterday that he Hopes a recovery in the and Canadian economies is near after a definite weak ening in recent in the United the number of positive while not pro Vides some Hope that the end of the slow Down May not be far he said in his second major Public speech since taking Over As head of the Canadian Central in the fed Cut its target for the Federal funds rate the inter est that Banks charge each other on overnight Loans from per cent to five per that the lowest since june when the funds rate also stood at five per the fed attributed the Economys weakness in part to production cuts at factories in the face of flagging excess productive capacity has emerged the possibility that this excess could continue for some time and the potential for weakness in global economic conditions suggest substantial risks that demand and production could remain the fed said in a explaining its decision to Cut rates again with the fed offering a list of concerns about the Economy and the next scheduled meeting not until May some economists believe the Odds Are High Adrian Wyld Canadian press gillespies liquidation world Chain has grown to 88 retail outlets across North vilify them if you the discounts Are deep of maligned liquidation world coming to town by Murray Mcneill Dale Gillespie has been called All of those but he Doest let it bother him Gillespie is the founder and chief executive officer of liquidation a Calgary based firm that specializes in buying merchandise from distressed companies and reselling it at a discount in one of its 88 retail outlets in Canada and the United next liquidation world will open its first Winnipeg estimated outlet in the former Eaton warehouse build ing at 1821 Wellington the store will sell a wide array of items everything from couches to cookies at discounts of 20 to 90 per it sounds like a match made in head discount merchandiser setting up shop in a City whose citizens have a reputation for not wanting to pay retail prices for Gillespie admit Ted during a cell phone interview yesterday from the Side of the Road somewhere in Southern Alberta that that is one of the reasons his company has been trying for three years to open a store in he envisions opening As Many As three stores in although he admitted Hes getting a Little ahead of himself when he starts talking like first Well test the water with one store and see How we As for the Gillespie said he Doest let the name calling bother but he was also Quick to add that he Doest think those names Are a fair or accurate description of the role his company plays in the North american liquidation world thrives on the misfortunes of others Compa Nies that have been placed into bankruptcy or or have fallen victim to tornadoes or it also gets a lot of its merchandise from companies that View it As a rather than a Vul Phil Hossack Winnipeg free press worker prepares for grand open ing of new liquidation world out let on Wellington he we Deal with a lot of people who Are not in but who have inventory they want to convert into he but nobody Ever talks about its All slanted towards being the but we do help a lot of people out of very pre carious he also disputes the notion that liquidation world Only thrives in bad eco nomic generally we do very Well in both Good and bad he regardless of How you describe the role of liquidation theres no disputing that these Are prosperous Days for Gillespie and his with the Economy slowing and Consumers starting to Cut Back on their a growing number of retailers Are scrambling to reduce their inventories and to strengthen their financial so there Call ing liquidation world to see if it will take their excess which it gladly does As Long As the Price is i guess we started to see a significant change in the business pattern in the United states As far Back As last August or when Many retailers started saying they had too much product on Gillespie so weve had a lot of Good opportunities in the last six he said most of the corporate Belt tightening so far has been in the United but thinks its just a matter of within the next six to eight months before the same thing starts happening Here in and when it liquidation world will be ready to step in and snap up those unwanted he most of the merchandise that has been arriving at the company new Winnipeg store Over the last week or two was purchased from retailers in the United said Orest manager of Prairie Region develop ment for liquidation Smoliak said the goods include Gro hardware and some items Are marked Down 20 to 90 per while others Are 40 to 60 per cent off regular retail while Treyve still got a fair bit of work ahead of Smoliak said the stores 20 to 25 Fulland Par time work ers expect to have everything ready for next thursdays grand everything is coming he although this will be the company first retail outlet in it does have stores in two other Manitoba Cen tres Thompson and Gillespie said although the Stein Bach store has performed Well for the the Thompson outlet has had its ups and Downs because of a lengthy strike last year at the towns major employer the nearby Inco in addition to its retail liquidation world also conducts onsite auctions on behalf of other that the Central Bank May Cut rates again before that All suggests that the door is open to an inter meeting Cut if any of those Downside economic risks become of More said Allen chief economist at decision the decision came after a close door meeting of the feds chief policymaking the Federal open Market the panel includes fed chairman Alan fed Gover nors and five of the 12 presidents of fed eral Reserve the White House declined to comment on the feds decision to Cut rates by a half rather than a three quarters of a senator Charles an Iowa Republican who chairs the Senate finance was Dis it should have been he but National association of manufacturers president Jerry whose Industry is bearing the Brunt of the eco nomic called the Hal Point Cut a very helpful step toward bringing the Economy out of troubled Given the backdrop of a weak Economy and economic turmoil Over the fed said it will need to Monitor developments yesterdays rate Cut comes against the backdrop of a faltering a sliding Stock Market and economic Trou Bles especially in the worlds second largest manufacturing activity has plunged and the mood of whose spending accounts for two thirds of All economic is associated press Dodge sees spillover from slowdown Bank governor says our growth rates will dip by Nelson Wyatt Montreal although North Ameri Cas economic growth is undeniably the problem could be Short says Bank of Canada governor David in his second major Public speech since becoming head of the Central Dodge said yesterday he Hopes the slow born in the United states and spilling Over into is near an in the United the number of positive while not provides some Hope that the end of the slowdown May not be far he Dodge acknowledged that Canadas projected annual growth rates will dip but said there should be a return to sustain Able growth in the third Calendar if you look at just the revisions to the National accounts for the first three quarters of last year and the weaker fourth Quarter that had been that would Knock about thereto four tenths off the annual growth he told a news conference after the Canadas growth rate in 2000 was per cent and economists have pegged it slightly above two per cent for this Dodge spoke to the Montreal society of financial analysts just before his counterpart Federal Reserve chair Man Alan Greenspan Cut interest rates half a percentage Point to boost the some Market players were hoping for a Cut of As much As three quarters of a economists say the Bank of Canada will Likely match the rate Cut with the Banks next scheduled rate announce ment april Andrew senior economist with said a Cut in rates is Likely because the Central Bank is lowering its growth which Are still More optimistic than Market growth is coming in weaker than what they so i think the Bank still feels the need to provide some More assistance to the Pyle but the Way Hes couched his its not going to happen just because the fed went 50 basis Points a Hal Point today Doest mean they have to Cut rates before their economic data in Canada and the United states Are Dodge said in his production cuts in the Auto for have led to but in other parts of the such As Quebec aerospace the Energy construction and there is still considerable he in assessing the near term course for the Canadian we Are All facing a number of Dodge the most important relates to the abruptness and extent of the slowdown in the because so much of Canadas Trade about 80 per cent of exports head South to the United any trouble in markets there is quickly Felt in Canadian press double digit returns around the Corner by Geoff Kirbyson if there is a Silver lining to the dark Cloud that has hovered Over the Toronto Stock Exchange since last it is the markets Lon term bullish reaction to rate cuts by the Federal with Many in the investment Industry hoping for a 75 to 100 basis Point yesterdays 50 basis Point reduction fuelled a driving Canadas largest Index Down 154 Points to a drop of nearly two per since the begin Ning of the the tse 300 is Down More than 12 per but fed rate cuts mean double digit returns Are right around the Corner for Scott an investment adviser at Scotia Mcleod in said beginning in the fed has Cut rates three times for a total of 150 basis bringing the Federal funds rate Down to per rate cuts mean the markets perform better Down the while the Economy usually takes six months to a year to the markets usually react in three to six the direction of the move is More important than the Money is becoming he a recent report by Merrill Lynch Canada examining the three periods where the fed has under taken Succes Sive rate cuts since 1989 backs up Stew arts it showed stocks returned an average of per cent in the six months following the first far outstripping the average return for Bonds per cent and Cash per the fed has completely unwound the previous 11month tightening Cycle in 11 that should hopefully put some sort of floor under investor and consumer Robert senior Canadian economist and Strate Gist at Merrill said in an inter View from his Toronto continued please see Little data b4 rate Cut fails to lift markets by James Dalziel Greenspan Medicine for the ail ing Economy want Strong investors decided leaving major Stock markets at Low Levels that we rent seen anytime last Many were disappointed by the Hal Point interest rate put from Federal Reserve chairman also announced at mid after and Seet prices skidding they had hoped the fed would lower rates by three quarters of a the Toronto Stock Exchange 300 composite Index gave up almost All of mondays hopeful Advance and lost Points or per cent to near its Levels of Early december High tech stocks like ups uni phase and research in motion led the decline in continued please see 84 ;