April 2005 Edition
CANADA
Over the past two years, Canada's total exports of manufactured goods have fallen by four per cent while those of the U.S. and Mexico, its two NAFTA partners, have increased by more than 10 per cent, according to a recent Scotiabank report. Sales of natural resources, of which Canada has in abundance, have boosted Canada's exports, but Canada is at a competitive disadvantage to lower-cost nations in labour-intensive manufacturing. This has been exacerbated by a 30-per cent appreciation of the dollar over the past two years.
DOGS
A mobile phone has been invented for dogs. The bone-shaped device, called Petscell, will fit on the animal's collar and will go on sale next year. The top-of-the-line versions will incorporate a camera to show what pets are up to. If they are seen misbehaving, the owner can dial a number and shout commands to the dog which can be heard if it replies. The device could also be used to find lost dogs.
BANKING
The meteoric growth of Internet banking in Canada appears to have stalled, with the number of consumers who did business with their banks on-line last year declining for the first time since 1997. The slowdown is being attributed to the variety of other options available to consumers, including telephone banking and automated banking machines, and some lingering security concerns.
MARKETS
In 2004, the best performing stockmarket was Colombia with a gain of 120 per cent in dollar terms. The worst, for the second year running was China where share prices fell by 15 per cent. Thailand was the only other market to suffer a decline.
BANKS
Russia has the highest concentration of central bankers in any large economy with almost 60 central bankers per 100,000 people. Including its regional branches, Russia's central bank has a staff of over 80,000. This is twice as many employees as in America's Federal Reserve.
CHICAGO
Six of America's seven long-distance railroads meet at Chicago. With local and regional services, about 1,200 trains a day pass through the city. At present, a freight train trying to get across Chicago has to deal with up to four railroads and it can take days to get it across town. In addition to O'Hare, it also has a mid-sized airport at Midway. Seven interstate highways come through the region and trucks move US$752-billion in goods to, from and through it each year.
MONEY
Capital is again flowing briskly to developing countries. Emerging economies received US$279-billion in private capital in 2004, a 32 per cent increase from 2003 and the highest level since 1997. Latin America will see the fastest growth this year, while money flowing to Asia will slow.
CROPS
Ethiopia produced 14.27 million tonnes of crops in 2004, 24 per cent higher than in 2003 and 21 per cent more than the average for the past five years. Good rains, increased use of fertilizers and improved seeds contributed to the rise in production. However, 2.2 million Ethiopians will still need emergency assistance. Emergency food requirements for 2005 are calculated to be 387,500 tonnes. Also, 89,000 tonnes of fortified blended food and vegetable oil will be required for children under five and expectant mothers.
KIT KAT
The makers of this popular candy bar are struggling to cope with a surge in demand for the product in Japan. Kit Kat, an expression invented in Britain in the 1930s, sounds eerily close to "kitto katsu" a Japanese exam-season mantra that literally means "I'll do my best to make sure I succeed." Tens of thousands of students' lunch boxes contain the bar during exam time, put there either by ambitious parents or nervous students.
COUPONS
The use of coupons rose in 2004 as 251-billion coupons were distributed in the U.S. within Free-Standing Inserts (FSIs). This was a 7.7 increase over the previous year. It is estimated that about 850 coupons were issued for every U.S. citizen, with potential per-person savings of nearly US$1,000. The consumer packaged goods sector remains the largest user of FSI coupons.
THE SKIES
Global airline passenger traffic grew by over 15 per cent last year, led by routes in the Middle East and Asia, while cargo shipments rose over 13 per cent. The International Air Transport Association is forecasting that its members will make an overall profit in 2005 of US$1.2-billion if North Sea oil prices average $34.00 a barrel.
AGING
About C$1.2-trillion in small-business assets will change hands between now and 2010 as a massive wave of aging entrepreneurs retires, but few of them are ready for the shift, in terms of either succession planning or retirement savings. A CIBC study says that about 500,000 or 20 percent of Canada's small-business owners are planning to retire within the next five years, with 30 per cent more planning to do so by 2020.
DOWN
The price of goose down is getting more expensive because of a change in eating patterns. Prices of feathers have risen because the Chinese have increased their living standards and are eating more duck and less goose. Fewer geese are being raised.
WASHING
Australian scientists have found that if you take the air bubbles out of water, you can clean clothes without detergent. The explanation is that the bubbles act like a glue that prevents oily substances from breaking apart.
SCANNERS
A Canada Competition Bureau report states that Canadian consumers need a bigger say in how the retail industry polices the thousands of stores that use bar-code scanners at the check-out counter. The industry has no effective way to discipline retailers who decline to make amends when their scanners overcharge customers.
PLASTIC
VISA USA, the largest U.S. credit card issuer, cited soaring transactions at fast-food restaurants and other emerging market segments for a record US$1,045-trillion in plastic sales in 2004, up 19 per cent from 2003. The staggering total, which includes both debit and credit card sales, was roughly the size of Canada's entire economy last year. Volume at fast-food restaurants was the single fastest-growing part of its business, rising 67 per cent to US$10.8 billion.
INVESTMENT
Direct investment overseas by Chinese companies rose 27 per cent over a year earlier to US$3.6-billion in 2004 from a year ago. Meanwhile, contracted investment overseas, an indicator of future spending plans soared 78 per cent to $3.7 billion in 2004. More than two-thirds of actual overseas investments was spent on equity in foreign companies. Foreign investment in China by foreign companies, which surpassed US$60-billion in 2004, still far exceeds the amount of money Chinese firms spend abroad.
ART
Collectors will buy and sell more than US$20-billion of art this year. Prices of the top 25 per cent of the most expensive contemporary pictures sold at auction have more than tripled since 1996.
MOUNTAINS
Only 11 people have reached the top of all the world's tallest mountains, all of which are more than 8,000 metres high. More people, 12, have landed on the surface of the moon.
WORK
A new employee survey suggests that money may be starting to lose the battle between time and money in the workplace. Nearly 40 per cent of 4,600 full-time workers in the U.S. say they would choose more time off work than a US$5,000 annual pay hike. That was an almost 20 per cent jump from when the question was asked three years ago.
M&A
Mergers and acquisitions in the Canadian software and computert services industry bounced back in 2004, rising by 40 per cent from a year ago. Last year there were 61 mergers and acquisitions, up from 45 in 2003. At the same time, the value of these deals soared 115 per cent to C$2.8 billion. Canadians again bought more foreign firms than foreigners bought Canadian firms.
TOURISM
The Asia Pacific Foundation warns that the Canadian tourism sector appears unprepared for a dramatic increase in the number of Chinese visitors expected in the next few years. The warning comes after Canada was given rights to negotiate for "approved destination status" for China's 1.3 billion residents. That process is expected to take up to one year to negotiate. Once approved, the move is expected to raise the number of Chinese tourists to Canada to more than a million annually by 2010, from less than 100,000 last year.
WATERWAYS
While some consider it an anachronism in the age of e-commerce, the aging freight-bearing U.S. waterway system remains vital to a broad swath of the economy, carrying everything from jet fuel and coal to salt and wax for coating milk cartons. However, the network which stretches 19,000 kilometres, is plagued by age and breakdowns and is saddling many companies that rely on the network with a growing number of supply disruptions and added costs.
VISAS
Mexico has asked Canada to support the expansion of a temporary workers program. Around 14,000 Mexicans received seasonal work permits last year to fill jobs in Canada, mostly as field hands during harvest. The program recently has been expanded to include other low-skill jobs that Canadians don't want in construction, the hotel industry and meat packing plants. The current U.S. system for temporary workers provides around 50,000 visas per year but is considered too cumbersome and expensive by employers who often find it easier to hire illegal immigrants.
RULES
As of January 2005, Canada and the United States implemented measures to liberalize the rules of origin applicable to tea, spices, carrageenin, seasonings, precious metals, speed drive controllers and their printed assemblies, household appliances, loudspeakers, thermostats, parts for various machinery and toys. The measures will come into force in Mexico following ratification by the Mexican Senate.
TRADE
China displaced the U.S. as Japan's biggest trading partner last year, underscoring the country's growing importance for the Japanese and world economies. Japan's trade with China, including Hong Kong, was US$213-billion in 2004. U.S trade in 2004 was hurt by special factors such as Japan's 13-month ban on American beef imports.
BODIES
After scandals involving the black-market sale of body parts, the University of California is considering fitting cadavers with barcodes or radio frequency devices. The high-tech fix is one of a number of reforms being proposed to reassure people that bodies donated to science will be used as intended.
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