News Topics
Hello,
Interesting article was published today by Globe and Mail "For oil companies, the good old (bad old) days are over" (Sep 07, 2007)
http://www.reportonbusiness.com/servlet/st...lumnsBlogs/home
(Sorry, in couple of weeks this article will be removed and put to archive with pay access)
QUOTE Now look at what`s happening. Economic nationalism is on the rise. Poor countries that once begged foreign oil companies to develop resources buried in deserts and jungles are now kicking these same companies out. Development, revenue and tax laws are being furiously rewritten to favour domestic interests.
...
With energy prices strong, and governments in Africa and Asia enjoying their oil and gas spoils, there is no reason to believe the nationalization trend will end any time soon. At the same time, shareholders of Western oil and gas companies will put pressure on management to avoid plunking fortunes into countries like Algeria because of the new risks. They will suggest that exploration and development money be spent elsewhere.
But where? The biggest potential oil and gas projects reside, inconveniently, in countries where you wouldn`t want to spend your vacations.
...Now, please spend 10 minutes and watch the following video:
http://youtube.com/watch?v=UQyRx8M9BZo (Oil sands)
http://youtube.com/watch?v=Y_jOBURovPM (Alberta 2020)
And one more extra video:
http://www.cbsnews.com/stories/2006/01/20/...in1225184.shtml (60 Minutes: The oil sands of Alberta, June 25, 2006)
I guess, the answer is obvious.
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Canada avoids U.S. economic woes ... for now
National Post (Sep 08, 2007)
http://www.canada.com/nationalpost/financi...723&k=14836
QUOTE North America is becoming a tale of two economies - sinking housing and shrinking job markets south of the border but boom times for both here.
...
Canada`s job market, like its housing market, has so far been unaffected by the financial market turmoil that spilled across the U.S. border. Canada pumped out 23,000 jobs last month and kept the unemployment rate at a modern-day low of six per cent.And not only were there more jobs here, they were also paying more, four per cent more on average than a year earlier, and well above the 2.2-per-cent increase in the cost of living over that period. In contrast, the U.S. lost jobs last month, while the employment gains of the previous two months were also revised downward, as that country`s housing market recession and subprime-mortgage market meltdown spread to the so-called real economy.
"Though the Canadian economy remains very well supported, the main question mark going forward is the outlook for the U.S. economy," cautioned National Bank of Canada economist Eric Dube.
...
Statistics Canada noted that the increase in employment boosted job growth for the year so far to 232,000 or 1.4 per cent, up slightly from the 1.2 per cent over the same period a year earlier.
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Hello,
A bit more of great news from Western Canada reported by
Edmonton Journal (Sep 11, 2007):
Job market stuck in overdrive
http://www.canada.com/edmontonjournal/news...41-e18996c3cde1
QUOTE Edmonton employment opportunities will continue to grow in the fourth quarter of 2007, according to Manpower Inc. employment agency.
...
Looking beyond next quarter, Luft said shortages in workers and supplies have caused some energy-related activity to be postponed, but not cancelled -- ensuring Alberta employment will remain strong for the foreseeable future.
...
[about percentage of major employers who planning to hire]
The net outlook for the fourth quarter is 48 per cent in Calgary, 46 per cent in Regina, 39 per cent in Vancouver, and 31 per cent for all of western Canada.
The western Canadian outlook is strongest in construction, wholesale and retail trade, and mining -- including natural-gas drilling, which Luft anticipates will be especially active into 2008.
Nationally, the Canadian outlook of 16 per cent .
The actual report is available at:
http://www.manpower.com/press/meos.cfm
and as PDF:
http://files.shareholder.com/downloads/MAN...N_MEOS_Q407.pdf
Outside of article in Edmonton Journal here are more numbers for rest of Canada:
Outlook is based on survey of 1700 Canadian employers.
Atlantic Canada: +28% (want to hire) -8% (want to shrink work force) = +20% (net)
Ontario: +22% -9% = +13%
Quebec: +15% -12% = +3%
Western Canada: +39% -8% = +31%
From report:
QUOTE Western Canada employers in the Construction sector expect the most dynamic hiring climate with a Net Employment Outlook of +50%. Western Canada employers in the Construction sector expect the most dynamic hiring climate with a Net Employment Outlook of +50%. Employers in the Wholesale & Retail Trade sector also anticipate a bullish quarter with a Net Employment Outlook of +49%, while employers in the Mining sector forecast a vigorous hiring climate with a Net Employment Outlook of +46%. Employers in the Finance, Insurance & Real Estate sector expect a booming three months with a forecasted Net Employment Outlook of +40%.
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Hello,
Statistics Canada released today report
http://www.statcan.ca/Daily/English/070911/d070911.pdf
Canadian international merchandise trade (Sep 11, 2007)
QUOTE Imports continued to gain ground, jumping 3.5% to $35.7 billion, from a revised $34.5 billion in June. This second consecutive monthly rise was led by an advance in imports of automotive products.
Canadian companies exported $39.3 billion in July, a 1.4% increase from the revised $38.8 billion in June. Industrial goods and materials as well as automotive products were the driving forces behind this increase.
Very interesting story is revealed in numbers of table "Merchandise trade"
Just in one year Canada`s trade with US contracted almost 4%. At the same time Trade with the rest of the world expanded by $14B which is about 27% growth. Overall exports grew by 5% and imports by 4.6%!
It all means that our trade relies less and less on US market.
This growth in exports come from many industries (not just oil from oil sands):
Agricultural: +13.7%
Industrial goods: +20.6%
Machinery: +4.1%
Consumer goods: +12.9%
Another part of Daily is
New Housing Price Index (July 2007)
New houses are getting more expensive in all CMAs except Windsor. Some data about change from July 2006 to July 2007:
QUOTE Ottawa +1.4%
Toronto and Oshawa + 2.4%
Hamilton +4.3%
Kitchener +1.6%
Calgary +9.8%
Edmonton +38.4%
Vancouver +9.2%
Needless to say that this trend will be repeated by prices of resale houses in few months.
Happy investing!
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Hello,
Today Toronto Star reported:
Wage hikes at highest level since May 2001 (Sep 12, 2007)
http://www.thestar.com/Business/article/255562
QUOTE Buoyed by the bargaining power that comes with the lowest unemployment rate in three decades, Canadians are enjoying their heftiest pay increases in years,
a trend that is expected to continue.
...
Average hourly wages in Canada rose 4 per cent in August from a year earlier, according to Statistics Canada, marking the second-highest year-over-year wage growth in a decade, eclipsed only by the gain of 4.1 per cent in May 2001.
...
The driving force is a tight labour market. Canada`s unemployment rate was at a 33-year low of 6 per cent in August.
If your tenants get this income hike it will be easier to talk about rent increase.