At the open: TSX starts higher as China data boosts oil + MORE Jan 19th

MONTREAL – Canadian Pacific Railway has asked the U.S. Department of Justice to get involved in its battle to acquire Norfolk Southern.
The Calgary-based railway wants U.S. antitrust authorities to conduct a review of what it alleges is an illegal co-ordinated effort by major U.S. railroads to block industry consolidation, including its proposed takeover of the Virginia rail company.
It cited news reports in which those railways said they were concerned about the damage the merger — which would create the largest railway in North America — would have on their profitability and shareholder value.
“We are deeply concerned that these actions are being taken for the primary purpose of restraining trade … and not for any legitimate purpose that would benefit the public or enhance competition in the U.S. railroad industry,” said the letter signed by lawyers for Canadian Pacific.
Canadian Pacific (TSX:CP) has been repeatedly rebuffed by Norfolk Southern since making a cash and stock offer worth US$28 billion in November, which it later sweetened to between US$37 billion and US$42 billion…

Wall St higher on China data, bank earnings

Julie Gordon/Reuters
OTTAWA _ The federal budget watchdog says in the coming years increasingly indebted households are poised to become the most financially vulnerable Canadians in decades.
The parliamentary budget office released a report Tuesday predicting the ratio of debt payments — including principal and interest payments — relative to disposable income will creep upwards over the next five years as interest rates rise.
The office projects that by the end of 2020, this ratio will increase to 15.9 per cent of disposable income from its late 2015 level of 14.1 per cent.
“Household debt-servicing capacity will become stretched further as interest rates rise to ‘normal’ levels over the next five years,” the report said.
“Based on PBO’s projection, the financial vulnerability of the average household would rise to levels beyond historical experience.”
The increase would mean households would be even more vulnerable to negative shocks to their income or to interest rates, which could also have an adverse effect on financial institutions…

EDMONTON – The Alberta Securities Commission is warning investors to beware of scams that could cost them money or earn them a reputation for fraud.
The regulator says scammers like to target baby boomers by preying on their fear that they haven’t saved enough for retirement.
The “hot” investment tip usually involves a high rate of return with little or no risk.
Such promises are a red flag for fraud, said Alison Trollope, a spokeswoman for the securities commission.
“Baby boomers are the largest and wealthiest generation in Canadian history, so to scam artists they are fantastic targets,” she said.
“We all know what our mothers told us: ‘If it sounds too good to be true it probably is.’ What we say is if it sounds too good to be true, it is.”
The commission has some other tips for people pondering what to do with their money as the Feb. 29 RRSP deadline approaches.
Trollope said investors should avoid unregistered sales people and companies…

Q: I shared a cottage property with my brother. I sold my half to my niece. Do I have to pay capital gains tax? If so, how do you calculate this? How do you determine the adjusted cost base? What expenses can be applied?
—Terry
A: The family cottage can provide a lot of lasting memories. But when it comes to sharing it with other family members, money can be an issue. In some cases, it’s figuring out what repairs to do next summer and who is going to flip the bill. In most cases, taxes eventually become a consideration as well.
In your case, Terry, it sounds like the sale of your half of the family cottage to your niece has already occurred. So the key is figuring out what tax implications will result.
Capital gains tax became payable in Canada in 1972. Prior to that, capital gains in this country were not subject to tax. A capital gain occurs when you sell certain assets for a higher price than what you paid for them.
Some assets are specifically exempt from capital gains tax. These include:

Capital gains on an eligible principal residence
Capital gains on qualified farm or fishing properties up to $1 million
Capital gains on qualified small business corporation shares up to $824,176
Capital gains on investments held in tax-sheltered or tax-free accounts like RRSPs, TFSAs or RESPs

You may be eligible to claim a principal residence exemption on the cottage proceeds, Terry…