Canadian Economy

[Taller, Better]

Originally Posted by isaidso

I don't know how they can. .

I would be hugely surprised if they do not come up at the top, yet again, of their own survey
that they are paying for.

[isaidso]

My opinion of them will plummet if that happens. What's the name of that publication as I'm going to look out for it to see? Was it Foreign Policy?

[isaidso]

Originally Posted by Dimethyltryptamine

but number of employee's isn't the only factor lol. Sydney doesn't have a huge number of employee's in the financial sector, but still ranks in the top 10.

It was noted in the post that employee count was just one of many metrics. Toronto also trails London in other important metrics like M&A, investment banking, and market capitalization. We're closing the gap there too, btw. I'm not suggesting that Toronto is going to catch London any time soon, but it's not the David vs Goliath situation it used to be.

You also realize that Sydney is in the top 10 according to some rankings, not all of them. Cities like Geneva and Zurich can also claim that they're in the top 10 because some studies put them there.

[Taller, Better]

"Rankings".

There are a million of them. Some based on good research. Some based on dubious questionnaires sent out to carefully selected areas asking about hypothetical knowledge of other international financial centres. It seems the advent of the internet has spawned an entire industry on ranking everything under the sun. It seems that some very official sounding "rankings" are the best form of advertising that money can buy.

[isaidso]

I'm working on a book that ranks rankings. I should hit these rankings up for 'sponsorship' money.

[Yellow Fever]

By REUTERS, , Updated: December 16, 2011 8:47 PM

BlackBerry delay darkens RIM's future


By Euan Rocha

TORONTO (Reuters) - A months-long delay in Research in Motion's new BlackBerrys and a dreary quarterly report sent RIM shares tumbling again on Friday and pushed some analysts to sound the death knell for the mobile device that once defined the industry.

RIM's announcement late Thursday that it expected to launch smartphones powered by its new QNX operating system months after initially expected revived calls for the ouster of RIM's co-CEOs Mike Lazaridis and Jim Balsillie.

The delay, combined with a dismal performance outlook issued along with the quarterly results, sparked renewed chatter about the break-up of the Canadian tech giant, which has floundered as nimbler competitors claw away at its market share.

"RIM confirmed the BlackBerry 10 smartphones will be delayed until the latter part of calendar 2012. This could be game over for the BlackBerry franchise," analysts at Canadian brokerage National Bank Financial wrote in a note to clients. BlackBerry 10 is the name the company has given to the QNX phones, which RIM had initially expected to deliver in the first quarter.

On Friday, the delay spurred several brokerage firms to cut their price targets and ratings on RIM shares and sent the Waterloo, Ontario-based company's shares tumbling more than 12 percent on Friday.

"We see a high risk that this is too late to turn around RIM's position and believe the risk of further delays is meaningful," Nomura analyst Stuart Jeffrey said in a research note. "Even in the best case, however, it seems unlikely RIM will have large volumes of its BB10 devices on sale within 15 months."....

read more:http://money.ca.msn.com/investing/ne...ns-rims-future

[CanadianDemon]

National securities regulator decision coming

Supreme Court ruling will not please all provinces

The Supreme Court is ready to pronounce judgment on whether Ottawa's controversial attempt to create a national securities regulator — without the consent of some provinces — is legal.

The country's top court said Monday it will rule on the constitutionality of Ottawa regulating in an area that had previously been thought to be provincial territory.

The single regulator concept was championed by Finance Minister Jim Flaherty almost from the moment he took office in 2006, with Ontario initially the only ally. Following a lengthy study process, the minister was able win over a number of provinces.

But with Quebec, Alberta and Manitoba still firmly in the no camp, and British Columbia and Saskatchewan vacillating, Flaherty decided to seek a clear legal green light.

The minister maintains a single regulator would be more effective in catching and prosecuting fraudsters.

More at: http://www.cbc.ca/news/canada/story/...on-coming.html

[SO143]

Canada’s Lesson to U.S.: Be Less Productive, Live Better
DECEMBER 21, 2011, 9:46 AM ET



Canadian living standards have advanced at a faster pace than in the U.S., even in the face of a big gap in productivity gains, Canada’s statistics agency said Wednesday.

Economists have long cited Canada’s meager labor-productivity growth as a drag on the Canadian economy. Central banker Mark Carney recently describing the performance as “abysmal.”

Productivity has long been regarded as a key force that can raise a country’s overall living standards as it translates into increased purchasing power.

But Statistics Canada offered a different view in an analysis of a series of metrics over a 14-year period, from the first quarter of 1997 to the first three months of 2011.

Canada’s level of labor productivity, or output per hour of work, has declined 17% relative to the U.S., the article said.

But the article also measured real gross domestic product per capita and real gross national income per capita–two living-standard metrics that suggest Canada is doing better in those regards than the U.S.

On a real GDP per capita basis, Canada’s living standards improved 5% relative to the U.S. The data agency said a large part of the difference in the trajectories of productivity and GDP per capita can be attributed to better job growth in Canada.[......]

http://blogs.wsj.com/economics/2011/...e-live-better/

Canada’s Economy $131 Billion Bigger With Asian Oil Markets
By Jeremy van Loon

(Bloomberg) -- Pipelines from Canada’s oil sands to the Pacific coast, including Enbridge Inc.’s proposed Northern Gateway route to tap markets in Asia, will raise the price received by producers by $13.60 a barrel by 2030, a university study said.

The extra profit would mean an additional C$131 billion ($127 billion) for Canada’s economy between 2016 and 2030, according to a study by the University of Calgary’s School of Public Policy. It would also add 649,000 person years of employment and generate tax revenue for provincial and federal governments, the report said.

Without access to markets in Asia, where fuel demand is growing faster than in the U.S., Canada is not able to earn world market prices, the study said. Currently, about 99 percent of Canadian crude exports is shipped to its largest trading partner, with most of it ending up in the Midwest and resulting in “substantially” lower prices than crude varieties such as Louisiana Light Sweet.

“Given Canada’s proximity and long history of supplying the U.S. with crude oil products, natural gas and electricity, the design and demand characteristics of U.S. energy markets largely dictate price levels,” the study said. “The opportunity to achieve these new price and processing levels produces substantial returns for Canadian resources.”[....]

http://www.businessweek.com/news/201...l-markets.html

[Taller, Better]

Well, I guess if the States doesn't want it and at a cheap price (recent turning down of pipeline) we'll have to look elsewhere. They will have to look elsewhere to get the oil too, though.

[SO143]

found an interesting news while i was doing a research on tablets for my school report

$35 tablet computer made by Canadian company

Indian government has contract to buy 10 million tablets



Within days of going on sale online, the 2,500 rupee (about $47) Aakash computer appears to be sold out, according to the tablet’s official Web site.

The tablet has generated huge excitement among gadget geeks and internationally renowned columnists alike, who say the product could advance education in India and revolutionize the lives of the world’s poor. But it has been dogged by complaints about its performance and delivery delays.

DataWind, the company that designed the tablet, started selling it online on Dec. 14, next to the tablet’s slightly more expensive cousin, the UbiSlate7+. In less than a week 60,000 Aakash orders were placed, said Suneet Singh Tuli, the chief executive of DataWind, in an interview.

That is when DataWind stopped taking more orders for Aakash, and it won’t sell any more of the tablets, Mr. Tuli said. Instead, the Aakash is being revamped in response to user demands, he said.



.....

http://india.blogs.nytimes.com/2012/...derperforming/

[SO143]

green light for southern ontario

Government of Canada Invests in Southern Ontario's Future Scientists and Engineers
January 14, 2012 16:35 ET

OSHAWA, ONTARIO--(Marketwire - Jan. 14, 2012) - Colin Carrie, Member of Parliament for Oshawa, on behalf of the Honourable Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), today announced that the Government of Canada will invest up to $1.5 million for FIRST Robotics Canada.

The funding will create opportunities for students in southern Ontario to participate in robotics competitions and real-world engineering challenges, encouraging them to look at science, technology, engineering and mathematics fields as potential study and career paths.

"Our government recognizes that to fuel business innovation, jobs and long term economic growth, young Canadians need to explore the benefits of pursuing an education or career in scientific fields," said MP Carrie. "Today's contribution will allow FIRST Robotics Canada to introduce more students to real-world science and technology challenges."

FIRST Robotics Canada will use the funding to involve more high school students in robot-building competitions, with teams competing against each other in tournaments televised by the Discovery Channel. The organization will also establish its successfully piloted Junior FIRST Lego League, which targets students aged six to nine, and expand its FIRST Lego League, which targets students aged nine to 14.

"Our goal is to engage up to 1,650 new students in southern Ontario through participation in our interactive team-based competitive robotics events, over the duration of this two-and-a-half year project," said Mark Breadner, executive director, FIRST Robotics Canada. "This investment will help us offset entry and travel fees for new school teams, ensuring higher access to FIRST programs by all youth regardless of socio-economic status. This will result in greater participation for our students."

The investment is provided through FedDev Ontario's Youth STEM Initiative, aimed at encouraging students in kindergarten through grade 12 to pursue an education or career in STEM fields.

http://www.marketwire.com/press-rele...rs-1606762.htm

[SPQR]

I heard on a radio show that canada will need even more immigrants in the future because its economic growth will be higher, the 2 provinces that will attract more immigrants will be saskatchewan and B.C.

[Moncaltor]

Originally Posted by SPQR

I heard on a radio show that canada will need even more immigrants in the future because its economic growth will be higher, the 2 provinces that will attract more immigrants will be saskatchewan and B.C.

I don't think so. The economy is recovering slowly and not enough jobs are being created. In the long term maybe, but we need reduce the amount of permanent residents and raise the standards for immigrants even more. The number of immigrants should be tied somehow to the growth of canadian economy.

[Moncaltor]

Export surge widens Canada's trade surplus

A surge in Canadian merchandise exports led by the auto and energy sectors powered up a bigger-than-expected $1.1-billion trade surplus in November, far outstripping what economists had expected but still unlikely to have much impact on fourth-quarter growth. Statistics Canada reported Friday that exports increased 3.2 per cent to $40.1 billion, with gains in most sectors, while imports declined 0.8 per cent to $39 billion, mainly because of lower imports of automotive products as well as industrial goods and materials.

The report stood in stark contrast to an October trade deficit of $487 million, the third time in the last six months that the trade balance has swung from deficit to surplus, noted TD Securities strategist David Tulk. "Despite the improvement in November, export and import volumes suggest that net exports is unlikely to contribute positively to fourth-quarter real GDP," Tulk wrote in a note to clients.

"The quarterly tracking shows an annualized 0.9 per cent decline in exports and a one per cent increase in imports. Paired with domestic fatigue, a softer trajectory for net exports is consistent with the theme of weaker growth heading into 2012." Exports of automotive products increased for a third consecutive month in November, rising 4.9 per cent to $5.3 billion, Statistics Canada said. Meanwhile, imports of auto products, industrial goods and materials and metals and metal ores were all lower. "We had expected a reading in the black for November and the details confirm that a stronger pace of activity in the U.S. was a key driver of the month's rebounding trade," said CIBC World Markets economist Emanuella Enenajor.

Energy exports add to surplus
"Higher energy exports also lifted the balance, although prices were the key driver for that category's gains." The trade surplus with the United States rose to $4.6 billion in November from $3.5 billion in October. The trade deficit with countries other than the United States narrowed from to $3.5 billion in November from $4 billion in October.

Exports to non-U.S. destinations rose 6.7 per cent to $11.5 billion, mainly the result of higher exports to the European Union. Imports from those countries increased 1.3 per cent to $15 billion, the fourth consecutive monthly gain. Exports to the United States rose 1.9 per cent to $28.6 billion, on the strength of energy products. Imports from the United States declined two per cent to $24 billion, largely because of lower shipments of automotive products.

Overall, exports of energy products increased 6.4 per cent to $10 billion in November, with shipments of crude petroleum up for a fourth consecutive month to a record high of $6.4 billion. Imports of energy products increased two per cent to $4.6 billion. Exports of industrial goods and materials rose four per cent to $10.2 billion in November on higher volumes of precious metals and alloys, as well as other crude non-metallic minerals. The increase was partially offset by a decline in volumes of fertilizers and fertilizer materials.

CBC.

[Moncaltor]

In Canada, unlike the U.S., the American dream lives on

We know the gap between rich and poor in Canada is large and growing. One need look no further than Attawapiskat and other northern communities for evidence that not all Canadians are living the dream. But income disparity shouldn’t be confused with equality of opportunity. And guess what? Canada is a world leader in economic mobility, right up there with Denmark, Norway and other Scandinavian countries.

Chatting with Canada's youngest VC recipient A recent front-page story in The New York Times highlighted new research that “turns conventional wisdom on its head” – namely, that Americans enjoy less economic mobility than their peers in, gasp, Canada. Yes, the U.S. is richer, but it’s also significantly more unequal, and a lot less mobile. Inequality is inherited, much like hair and eye colour.

The conclusion is based partly on the work of University of Ottawa professor Miles Corak, a social policy economist and former director of family and labour research at Statistics Canada. Prof. Corak has quantified the opportunity divide between the two countries and his conclusions are startling. Canadians are up to three times more economically mobile than Americans, and it’s almost entirely due to the conditions faced by those living at the very top and bottom of society, according to a new study he co-authored: Economic Mobility, Family Background, and the Well-Being of Children in the United States and Canada.

“What distinguishes the two countries is what’s happening at the tails,” Prof. Corak explained in an interview. “Rich kids grow up to be rich adults and poor kids stay poor. In Canada, that’s not so much the case.” The American dream that anyone can rise from humble beginnings to vast wealth has become a myth. And as the gap between rich and poor widens, the middle class is shrinking.

For now, at least, the dream of upward mobility in Canada is still alive. Canadians can thank a legacy of sound public policy and a more progressive tax system. Even the poorest of Canadian children have access to good schools, quality health care and decent homes (Attawapiskat notwithstanding). A new Finance Department analysis found that seven million mainly low-income Canadians out of 24 million tax filers got a net cash transfer from the federal income tax regime in 2008. The Child Tax Credit, for example, has successfully mitigated poverty by shifting federal tax dollars to poor families.

The labour market, thanks partly to the paid parental leave benefits of Employment Insurance, likewise encourages parents to be parents. Canadian children are also more likely to grow up in two-parent homes and in homes where at least one parent works part-time to provide home care. Compare that to the United States, where schools are financed primarily by wildly variable local property taxes rather than state income taxes. Neighbourhoods with low home values and marginal businesses have underfunded and failing schools, which become magnets for perpetual failure.

But it’s a country of extremes, and life is good if you’re at the top in the United States. A child’s chance of staying at the wealth pinnacle is much greater than in Canada. The divergence of opportunity in the U.S. grows even more pronounced with higher education. Tuition fees, which can easily run into the tens of thousands of dollars per year, essentially put the best schools out of reach for many Americans. Wealthy Americans, on the other hand, can literally buy opportunity for their children, paying their way through the best colleges, hiring tutors and providing access to family connections.

“It’s not that the fathers are getting their sons jobs, but they are getting them into the right college and networks, and that pays off a lot more in the U.S.,” Prof. Corak said. Canadians shouldn’t be complacent. Ottawa and most of the provinces are running large budget deficits, and education and health care are already targets as governments hunt for savings.

There’s another cause for concern. Rising income inequality is chipping away at the opportunities of future generations. Prof. Corak worries that wealthy Canadians may be forming exclusionary institutions in a drift toward Americanization. It’s reflected in increasingly polarized cities such as Toronto, where neighbourhoods are becoming more sharply divided along income and ethnic lines, he said. The dream of upward mobility may be alive for the current crop of young Canadians. That dream is an essential component of a healthy economy, and policy makers should ensure it’s passed on to future generations

The Globe and Mail.

[SPQR]

Originally Posted by Moncaltor

I don't think so. The economy is recovering slowly and not enough jobs are being created. In the long term maybe, but we need reduce the amount of permanent residents and raise the standards for immigrants even more. The number of immigrants should be tied somehow to the growth of canadian economy.

aren't you an immigrant too?

Now of course, you're going to say that you're not like those other immigrants.

[ssiguy2]

American dream lives on?........certainly in some areas of the country but the recent stats out of Vancouver might be signally that it will be the dream of the 1930s America.
The stats for real estate sales/new listings/inventory in the Greater Vancouver Real Estate area are so shocking this month that even real estate agents are feeling numb.
Sales have absolutely plummeted and new listings are thru the roof. January is a time when new listings slowing start to increase as do sales and inventory. In other words, Christmas is over and the real estate market gets back to business but this month so far is unknown territory. New listings start to slowly rise in January but they are skyrocketing this month.
Last year there wasn't one day new listings hit 400 even in the typical boom of spring but there has already been a day of over 400 new listings. Most years inventory starts in the 10k to 11k range and by Febuary is up by about a 1000 units but not this year. Inventory is soaring and already past 12,500 and going up by 200 a day! In the hot Vancouver West market when the HAMs {Vancouverites know this as Hot Asian Money} buy their places with cash sales have plunged and inventory is already at record levels. The latest graph of inventory in that area isn't going up but is, quite literally, verticle. The line is straight up, you can't even extrapolate future numbers due to it. The other HAM area is Richmond where sales comapred to last year are down 50% and Burnaby is down 59% yet new listings are soaring.
The sales to new listings ratio last January was 38% but is just 20% this year......a record save 2009 but that was due to hangover from 2008 correction and those numbers were on their way down while this month they are soaring.
Even if this continues for just another month or two, the effects on the real estate market {and the BC economy} could be very profound. If prices take a sudden nose dive we could literally see the collapse of a lifetime way beyond anything in the states.
Why?...............well the bigger you are the harder and furthest you have to fall. Prices are so grossly over valued that a plunge will wipe out hundreds of $thousands in lost equity. Not only is that bad enough but due to this huge fall, people will have mortgages worth more than their houses. In BC this is particularily acute because thousands of Vancouverites have no equity at all. The bought with 40 year zero downpayment mortgages. In recent years the 30 or 35 year mortgages were still bought with no money down due to the stupid "5% cash backs" offered by the banks. In other words, they will simply start walking away from their houses as they literally have nothing to use.
In Montreal if prices drop 20% that means the average person has lost about $55k which they maybe willing to swallow. In Vancouver, however, 20% equals $180k which people will not swallow. The standard Montrealer would have probably had a shorter mortgage and relatively more money down so they have builtt some equity. In Vancouver many put nothing down and stretched the mortgages over as long an amortization period as possible or they never would have qualified. This has meant that the Vancouverite would have made a much smaller dent in actually paying off the principle. The Montrealer would have much of their own money at risk while the Vancouverite only has the banks money at risk.
If prices drop sharply and quickly then Vancouver's market {and economy} will collapse as tens of thousands find themselves in such massive negative equity positions that they simply begin walking away. That will further depress the prices and the lower they go the more they lose resulting in more people defaulting whcih leads to higher inventory and lower prices and the cycle build on itself.
Vancouver could be seeing a complete collapse in the real estate market beyond anything comparable, it happened in Tokyo and this is what happens in speculative markets where the real estate market no longer has any correlation with the low economy.

[Moncaltor]

Originally Posted by SPQR

aren't you an immigrant too?

Now of course, you're going to say that you're not like those other immigrants.

Yes, I am one immigrant. So? Do I have to take a position favouring immigrants in every issue? That's not very logical. Can you explain why Canada needs to bring in the middle of a world recession 250 000 new permanent residents every year? By the way, the discussion it is not about me; it is about immigration.

[SPQR]

Originally Posted by Moncaltor

Yes, I am one immigrant. So? Do I have to take a position favouring immigrants in every issue? That's not very logical. Can you explain why Canada needs to bring in the middle of a world recession 250 000 new permanent residents every year? By the way, the discussion it is not about me; it is about immigration.

The some countries are in a recession, canada isn't besides that's irrelevant, the main reason canada accepts immigrants is not because the economy es going swell, but to replace the aging population.

The study suggests that in the immediate future immigration will become increasingly
important to Canada's population growth. It may be our only source of population growth
by 2025.
The study also indicates that the average age of our population will get older. The median
age of Canadians is expected to rise from 38.7 years to 42.5 years by 2020 and 43.6 in
2025. This trend will continue unless there is a large increase in the number of new
immigrants.
In response to this demographic study the Canadian government, in September 2005,
increased immigration targets to 320,000 a year within five years. This is an increase of
100,000 per year from current levels. Former Prime Minister Paul Martin said, "Within
10 short years there will be only 3 1/2 working Canadians for every senior citizen, down
from five today. By 2015, our domestic labour force will actually start to shrink, so all of
the net growth will need to come from new Canadians."

How are you going to increase economic growth without a workforce, and without enough workers to pay for all the social programs the government grants to retirees?

Please answer me that.

[Taller, Better]

From the Globe and Mail:
http://www.theglobeandmail.com/repor...rticle2307960/

Bouncing back from recession, Toronto leads Canada’s growth

For the second quarter in a row, the city with the most bustling economy in the country is Toronto.

It tallied Canada’s fastest economic momentum in the third quarter of last year, according to CIBC’s ranking of the country’s 25 largest municipalities. Edmonton is second, followed by the tech hub of Kitchener, Ont.

The recession slammed Canada’s largest city harder than elsewhere, resulting in steep job losses. But in recent years, Toronto has also shown a quicker recovery, to a point where economic momentum is running at its highest level in more than a decade.

In fact – other than the recession in 2009 – the city has been in the top five in the rankings for the past six years.

read the entire article here:
http://www.theglobeandmail.com/repor...rticle2307960/
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