May 2001 Edition
DEBT
A 1999 survey found that Canadians had on average an estimated $16 in debts for every $100 in assets. The debt burden was much higher for some types of families such as lone-parent families, most of which are headed by women. Canadians had debts estimated at $458 billion, three-quarters of which took the form of mortgages. Loans on owned vehicles amounted to about $29 billion, or 6 per cent of the total, while student loans (3 per cent) and credit card debts (3 per cent) each exceeded $14 billion.
MONEY
Until recently, salt bars were the standard currency of Ethiopia and cakes of salt, stamped to show their value, could be used as money in countries as far apart as Tibet and Borneo.
MILK
Ireland consumes more milk than any other country in the world. On average, each person drinks over 164 quarts of milk a year. Finland is second in milk consumption with 162 quarts consumed a year, next is Iceland with 160 quarts, then Norway with 158 quarts, and the Ukraine with 141 quarts of milk consumed each year.
SHOES
A Japanese company has invented a shoe with tail-lights for people who like to go for walks at night. The walking shoes have flashing red lights built into their heels. They also have built-in sensors that can tell night from day and detect car headlights. If a wearer strolls into an ill-lit area and a car approaches, the shoe lights start working automatically. They come in blue, beige and black, and cost US$157.
PRIVACY
The U.S. Senate has approved a bill that toughens rules on when bankrupt companies can sell customers' personal information. The legislation forbids companies, including brick-and-mortar and e-commerce dot-coms, from selling customers' personal information at the time of bankruptcy if they had previously promised they wouldn't. A sale, or lease of the data, can go through if it is consistent with pre-existing company policy or upon court consideration.
MEXICO
Retail sales in Mexico rose 10 per cent in 2000 over 1999 figures, supported by a strong rise in grocery and general merchandise sales, according to figures released by the National Association of Supermarkets and Department Stores (Antad). Grocery sales increased 6.8 per cent in 2000 from the previous year, general merchandise sales rose 14.1 per cent and clothing sales grew 11.6 per cent the industry group reported.
FEED
Two major British food retailers have announced they will provide a range of meat products from animals not fed with genetically modified (GM) feed. The decision is further evidence that food companies and retailers are reacting to a consumer backlash against GM food, amid concerns over its safety. One store commissioned a poll which revealed that of over 1,000 people surveyed, 64 percent said they would prefer to buy products from animals reared on a non-GM diet and 66 percent said it would be unfair to ask them to pay more.
TRENDS
The World is a 644-foot ship launched in February and now being fitted out. It is no ordinary cruise ship and sells an atmosphere of a private club rather than a cruise ship. Instead of carrying thousands of passengers for a week or two at a time, it will be home to around 200 residents who have paid between $2- and $7-million apiece for one of its 110 apartments. So far, 89 of the apartments have been sold. Residents pay an annual service charge of around 6 per cent of the cost of their apartments.
RETAIL
Where they experience bad customer service, more than 20 percent of customers walk out of retail stores without making a purchase, an equal number stop shopping at a store altogether, and 26 percent tell their friends and urge them not to shop at a store, according to a recent U.S. survey. The more affluent a customer, the more likely he/she is to walk out without making a purchase. Men are more likely than women to walk out without making a purchase, while women are more likely to complain to a manager.
HOLLYWOOD
A strike by the Writers Guild and the Screen Actors Guild would have a significant impact in Hollywood. In Los Angeles County alone, approximately 467,000 people, including limo drivers, stylists, florists, waiters, caterers, and bartenders, base their livelihood on the entertainment industry, according to the Los Angeles County Economic Development Corporation (LAEDC). That's roughly the population of the state of Wyoming. The potential economic impact on Los Angeles is US$1.8 billion per month.
OXFORD
More than 20 of Oxford's dons are now multimillionaires, the highest of any British university. Oxford has a share in over 32 companies which were founded to profit from ideas by academics. Their value has reached $5 billion. In the past three years alone, its academics have set up 20 companies worth $20 million. Cambridge has a share in eight companies worth around $10 million. Both institutions are dwarfed by American universities such as Massachusetts Institute of Technology which has shares in more than 4,000 companies.
WORK
The rise in the number of jobs requiring brains not brawn may be behind a rise in IQ levels in many Western countries. Research suggests that small changes in the environment experienced by a group of people, such as changes in the type of jobs people do, can bring about much bigger changes in society at large. Psychologists have long puzzled that IQ levels have risen over several generations in 20 nations.
CROCODILES
During the recent outbreaks of mad cow and foot and mouth disease, that have spread international fear and harmed farming in Europe, demand for alternative meat has risen sharply. Crocodile is one of the new tastes vying for international palates. Global demand for crocodile meat, which had averaged about 20 tons a month, has now doubled. In Germany and Netherlands, consumers prefer the meat for steaks while China and Hong Kong are keener on entrails, feet and blood for dishes such as crocodile satay, deep-fried crocodile with sour sauce, fried crocodile Chinese style and crocodile soup.
SNACKS
A new study indicates that consumers do not make snack food purchase decisions based solely on our traditional view of snacking categories (i.e., candy, cookies, salty snacks), but rather on product attributes such as better-for-you, private label, or salty vs. sweet. For example, consumers looking for a healthy snack alternative make their purchase decisions based on the health-related attributes of seemingly unrelated categories (i.e., pretzels, dried fruit, sugar free candy), not limiting themselves to one category.
E-TAILING
The U.S. e-retailing market grew by 120 percent to $33 billion last year, and is predicted to grow by 85 percent to $61 billion this year. While the costs of attracting new customers to online retail sites increased by 15 percent to $38 per customer last year, the survey found that multi-channel retailers' costs dropped to $11 per customer while pure-play sites spent $82 on each new account.
FISH
Americans could soon be eating sushi made from Arctic char reared in water pumped from closed Appalachian coal mines. The water that caused such headaches when the mines were operational, requiring continuous pumping to keep it out of miners' way, is perfect for raising coldwater fish. The mines act as natural cisterns, as clean mountain water continually seeps in. Millions of gallons of 55-degree water flow from hundreds of miles of former mine tunnels and drain into nearby streams. Fish farming is one of the fastest-growing sectors in U.S. agriculture, increasing to a $1 billion industry by 1998.
SURPLUS
The U.S. corn surplus has climbed toward its highest level in eight years, a mammoth 1.936 billion bushels, with spring planting expected to show growers cutting back on corn in favour of soybeans. In a monthly look at crop output and food demand worldwide, the Agriculture Department said the U.S. soybean stockpile would be stable with an estimated 310 million bushels in storage. Prices for corn and soybeans were at 15- to 25-year lows. At 829 million bushels, the wheat stockpile would be 12 percent, or 121 million bushels, smaller than a year ago.
METRIC
A fruit-and-vegetable vendor dubbed the "Metric Martyr'' was found guilty of selling his wares in pounds and ounces, in the first such prosecution in Britain. The vendor had attracted a groundswell of public support in his fight against using metric weights, as mandated by the European Union. The ruling went against him and he faces a maximum fine of $1,500 and could be liable for court costs as well. Under European legislation that took effect in January 2000, goods with the exception of draft beer are to be sold using metric as well as imperial measures.
FURNITURE
Last year, China became the leading exporter of household furniture into the United States, supplanting Canada. Chinese manufacturers shipped $1.65 billion in furniture to the U.S. compared to $1.37 billion from Canada. Chinese exports were up 40 per cent in January from January 2000, while Canadian exports increased just four per cent over the same period. China is also the fourth largest trading partner for the U.S. exporting $100 billion in 2000. This is more than six times its imports of American products.
MAIL
The average U.S. mailperson carries 17.8 tons of junk mail a year, the equivalent of four elephants. The amount of bulk mail thrown away unopened is 44 per cent.
POACHING
Russia loses between $1.5 and $2 billion dollars every year because of illicit fishing in its waters. One in every four boats, according to the Russian government, breaks the rules for fishing and sells its catch abroad. During 2000, Russian border guards imposed fines on 1,500 Russian and 120 foreign fishing vessels.
GREEN
In a recent study of environmental indicators by the University of Victoria which compared 29 countries in the Organization for Economic Co-operation and Development, Canada ended up second to last. The United States ranked last. However, in an international study, Canada was ranked third best out of 122 countries on environmental issues.
WINE
The U.S., Canada, Australia and New Zealand have signed an agreement to cement new guidelines for wine imports. The countries will accept wine imports from each other as long as the wines are made in accordance with each country's domestic laws and requirements. Argentina, Chile and South Africa participated in negotiations and have until 2002 to become signatories.
ART
The Custard Factory arts centre in Birmingham, England, has taken what constitutes art to a new extreme--by putting on an exhibition of absolutely nothing. There are no paintings or sculptures. Visitors are just confronted by the whitewashed walls of the 2,500 square foot hall.
Thank you for reading the A & A Economic News Digest. For more information visit our website www.aacb.com or contact A & A Contract Customs Brokers Ltd. at strehler@aacb.com.
Past issues of the A&A Economic News Digest can be found at http://www.aacb.com/publications/ed/index.asp
A 1999 survey found that Canadians had on average an estimated $16 in debts for every $100 in assets. The debt burden was much higher for some types of families such as lone-parent families, most of which are headed by women. Canadians had debts estimated at $458 billion, three-quarters of which took the form of mortgages. Loans on owned vehicles amounted to about $29 billion, or 6 per cent of the total, while student loans (3 per cent) and credit card debts (3 per cent) each exceeded $14 billion.
MONEY
Until recently, salt bars were the standard currency of Ethiopia and cakes of salt, stamped to show their value, could be used as money in countries as far apart as Tibet and Borneo.
MILK
Ireland consumes more milk than any other country in the world. On average, each person drinks over 164 quarts of milk a year. Finland is second in milk consumption with 162 quarts consumed a year, next is Iceland with 160 quarts, then Norway with 158 quarts, and the Ukraine with 141 quarts of milk consumed each year.
SHOES
A Japanese company has invented a shoe with tail-lights for people who like to go for walks at night. The walking shoes have flashing red lights built into their heels. They also have built-in sensors that can tell night from day and detect car headlights. If a wearer strolls into an ill-lit area and a car approaches, the shoe lights start working automatically. They come in blue, beige and black, and cost US$157.
PRIVACY
The U.S. Senate has approved a bill that toughens rules on when bankrupt companies can sell customers' personal information. The legislation forbids companies, including brick-and-mortar and e-commerce dot-coms, from selling customers' personal information at the time of bankruptcy if they had previously promised they wouldn't. A sale, or lease of the data, can go through if it is consistent with pre-existing company policy or upon court consideration.
MEXICO
Retail sales in Mexico rose 10 per cent in 2000 over 1999 figures, supported by a strong rise in grocery and general merchandise sales, according to figures released by the National Association of Supermarkets and Department Stores (Antad). Grocery sales increased 6.8 per cent in 2000 from the previous year, general merchandise sales rose 14.1 per cent and clothing sales grew 11.6 per cent the industry group reported.
FEED
Two major British food retailers have announced they will provide a range of meat products from animals not fed with genetically modified (GM) feed. The decision is further evidence that food companies and retailers are reacting to a consumer backlash against GM food, amid concerns over its safety. One store commissioned a poll which revealed that of over 1,000 people surveyed, 64 percent said they would prefer to buy products from animals reared on a non-GM diet and 66 percent said it would be unfair to ask them to pay more.
TRENDS
The World is a 644-foot ship launched in February and now being fitted out. It is no ordinary cruise ship and sells an atmosphere of a private club rather than a cruise ship. Instead of carrying thousands of passengers for a week or two at a time, it will be home to around 200 residents who have paid between $2- and $7-million apiece for one of its 110 apartments. So far, 89 of the apartments have been sold. Residents pay an annual service charge of around 6 per cent of the cost of their apartments.
RETAIL
Where they experience bad customer service, more than 20 percent of customers walk out of retail stores without making a purchase, an equal number stop shopping at a store altogether, and 26 percent tell their friends and urge them not to shop at a store, according to a recent U.S. survey. The more affluent a customer, the more likely he/she is to walk out without making a purchase. Men are more likely than women to walk out without making a purchase, while women are more likely to complain to a manager.
HOLLYWOOD
A strike by the Writers Guild and the Screen Actors Guild would have a significant impact in Hollywood. In Los Angeles County alone, approximately 467,000 people, including limo drivers, stylists, florists, waiters, caterers, and bartenders, base their livelihood on the entertainment industry, according to the Los Angeles County Economic Development Corporation (LAEDC). That's roughly the population of the state of Wyoming. The potential economic impact on Los Angeles is US$1.8 billion per month.
OXFORD
More than 20 of Oxford's dons are now multimillionaires, the highest of any British university. Oxford has a share in over 32 companies which were founded to profit from ideas by academics. Their value has reached $5 billion. In the past three years alone, its academics have set up 20 companies worth $20 million. Cambridge has a share in eight companies worth around $10 million. Both institutions are dwarfed by American universities such as Massachusetts Institute of Technology which has shares in more than 4,000 companies.
WORK
The rise in the number of jobs requiring brains not brawn may be behind a rise in IQ levels in many Western countries. Research suggests that small changes in the environment experienced by a group of people, such as changes in the type of jobs people do, can bring about much bigger changes in society at large. Psychologists have long puzzled that IQ levels have risen over several generations in 20 nations.
CROCODILES
During the recent outbreaks of mad cow and foot and mouth disease, that have spread international fear and harmed farming in Europe, demand for alternative meat has risen sharply. Crocodile is one of the new tastes vying for international palates. Global demand for crocodile meat, which had averaged about 20 tons a month, has now doubled. In Germany and Netherlands, consumers prefer the meat for steaks while China and Hong Kong are keener on entrails, feet and blood for dishes such as crocodile satay, deep-fried crocodile with sour sauce, fried crocodile Chinese style and crocodile soup.
SNACKS
A new study indicates that consumers do not make snack food purchase decisions based solely on our traditional view of snacking categories (i.e., candy, cookies, salty snacks), but rather on product attributes such as better-for-you, private label, or salty vs. sweet. For example, consumers looking for a healthy snack alternative make their purchase decisions based on the health-related attributes of seemingly unrelated categories (i.e., pretzels, dried fruit, sugar free candy), not limiting themselves to one category.
E-TAILING
The U.S. e-retailing market grew by 120 percent to $33 billion last year, and is predicted to grow by 85 percent to $61 billion this year. While the costs of attracting new customers to online retail sites increased by 15 percent to $38 per customer last year, the survey found that multi-channel retailers' costs dropped to $11 per customer while pure-play sites spent $82 on each new account.
FISH
Americans could soon be eating sushi made from Arctic char reared in water pumped from closed Appalachian coal mines. The water that caused such headaches when the mines were operational, requiring continuous pumping to keep it out of miners' way, is perfect for raising coldwater fish. The mines act as natural cisterns, as clean mountain water continually seeps in. Millions of gallons of 55-degree water flow from hundreds of miles of former mine tunnels and drain into nearby streams. Fish farming is one of the fastest-growing sectors in U.S. agriculture, increasing to a $1 billion industry by 1998.
SURPLUS
The U.S. corn surplus has climbed toward its highest level in eight years, a mammoth 1.936 billion bushels, with spring planting expected to show growers cutting back on corn in favour of soybeans. In a monthly look at crop output and food demand worldwide, the Agriculture Department said the U.S. soybean stockpile would be stable with an estimated 310 million bushels in storage. Prices for corn and soybeans were at 15- to 25-year lows. At 829 million bushels, the wheat stockpile would be 12 percent, or 121 million bushels, smaller than a year ago.
METRIC
A fruit-and-vegetable vendor dubbed the "Metric Martyr'' was found guilty of selling his wares in pounds and ounces, in the first such prosecution in Britain. The vendor had attracted a groundswell of public support in his fight against using metric weights, as mandated by the European Union. The ruling went against him and he faces a maximum fine of $1,500 and could be liable for court costs as well. Under European legislation that took effect in January 2000, goods with the exception of draft beer are to be sold using metric as well as imperial measures.
FURNITURE
Last year, China became the leading exporter of household furniture into the United States, supplanting Canada. Chinese manufacturers shipped $1.65 billion in furniture to the U.S. compared to $1.37 billion from Canada. Chinese exports were up 40 per cent in January from January 2000, while Canadian exports increased just four per cent over the same period. China is also the fourth largest trading partner for the U.S. exporting $100 billion in 2000. This is more than six times its imports of American products.
The average U.S. mailperson carries 17.8 tons of junk mail a year, the equivalent of four elephants. The amount of bulk mail thrown away unopened is 44 per cent.
POACHING
Russia loses between $1.5 and $2 billion dollars every year because of illicit fishing in its waters. One in every four boats, according to the Russian government, breaks the rules for fishing and sells its catch abroad. During 2000, Russian border guards imposed fines on 1,500 Russian and 120 foreign fishing vessels.
GREEN
In a recent study of environmental indicators by the University of Victoria which compared 29 countries in the Organization for Economic Co-operation and Development, Canada ended up second to last. The United States ranked last. However, in an international study, Canada was ranked third best out of 122 countries on environmental issues.
WINE
The U.S., Canada, Australia and New Zealand have signed an agreement to cement new guidelines for wine imports. The countries will accept wine imports from each other as long as the wines are made in accordance with each country's domestic laws and requirements. Argentina, Chile and South Africa participated in negotiations and have until 2002 to become signatories.
ART
The Custard Factory arts centre in Birmingham, England, has taken what constitutes art to a new extreme--by putting on an exhibition of absolutely nothing. There are no paintings or sculptures. Visitors are just confronted by the whitewashed walls of the 2,500 square foot hall.
Thank you for reading the A & A Economic News Digest. For more information visit our website www.aacb.com or contact A & A Contract Customs Brokers Ltd. at strehler@aacb.com.
Past issues of the A&A Economic News Digest can be found at http://www.aacb.com/publications/ed/index.asp
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