January 2007 Edition
PARKING
A new service has started in Paris designed to make life easier for harried drivers by allowing them to find out, in real time, whether there are parking spaces available nearby by using their cellphones or GPS navigation devices. The system will monitor the status of about 120 public parking garages across the French capital. It is reckoned that at certain times of the day, 20 to 25 per cent of vehicles are in search of a parking space. This system should improve the traffic flow. There will be no charge for customers to access the parking database.
TERMINOLOGY
The U.S. government will now refer to the approximately 11 million Americans who face a constant struggle with hunger as people with "very low food security." According to a U.S. Department of Agriculture report, roughly 35 million Americans had difficulty feeding themselves in 2005 and of those some 10.8 million went hungry. The change in terminology has angered groups that are fighting hunger.
CARS
Defying worries about pollution, oil consumption and economic over-heating, China's automotive boom is accelerating as international auto giants and scores of Chinese automotive companies scramble to stake claims. Industry experts say the market will be the world's second largest this year and No 1 within 15 years. The U.S. has sales of between 16.5-million and 17-million vehicles each year. By 2020, vehicle sales in China could hit 20- million. This, and the potential growth in the Indian market are driving a significant shift in investment strategies.
COUNTERFEIT
The Bank of Canada expects dangerous levels of currency counterfeiting to continue for up to three years. Since 2001, counterfeiting in Canada has exploded, breaking historical records and making the country one of the worst in the world for the circulation of phoney bills. The current threshold is 120 phoney bills for every million banknotes in circulation. In 2004, the worst counterfeiting year in Canadian history, there were 470 phoney bills for every million genuine notes in circulation. The proliferation of inexpensive, high-tech copying equipment has made Canada a ripe target for counterfeiters.
OUTSOURCING
IBM is to triple its investment in India to US$6-billion by 2009. With more than 43,000 employees in India, it is the largest foreign employer in the country.
HAIR
Not since the big hairstyles of the 80s has gel and mousse been so popular. According to a recent study, such personal style enhancers have brought the market up to US$7.2-billion a year and is expected to grow to nearly $8.5-billion by 2010. Hair accessories, everything from clips and combs to wigs and weaves, bounced back from sagging sales in recent years posting the largest category gain in 2005 at 8.7 per cent.
DRUGS
More than 120-million people worldwide suffer from high blood pressure with estimates climbing to 210-million by 2015. The value of the hypertensive market in seven major countries, the U.S., Britain, France, Germany, Italy, Japan and Spain totalled about US$35-billion in 2005. Some pharmaceutical companies are now shifting research dollars away from this sector to diseases such as cancer which are more profitable as generic drugs start to invade the cardiovascular market.
COTTON
U.S. scientists have genetically modified the cotton plant's naturally toxic seeds to turn them into a potential food source for millions of people. Researchers have found a way of sufficiently reducing gossypol, a powerful toxin in the seeds to allow then to be consumed by humans. Enough cotton is planted worldwide to supply the protein needs of 500 million people.
BATTERIES
A university in Israel has developed and patented nano-battery technology suitable for military applications. The new battery has a thickness of a human hair, is safer and can recharge more quickly. This battery will eliminate the fire hazards of lithium-based batteries and could mark an alternative source of power for mobile devices.
WIND
Since 1990, the world's fastest- growing energy source has been wind, clocking an average annual growth rate of 26 per cent. According to the Global Wind Energy Council, the industry's worldwide revenues jumped to US$25-billion in 2005 from $11-billion in 2004. Wind turbines generate 59,000 megawatts globally, enough to power 18 million households. The most wind-friendly nations are Denmark, Spain and Germany.
KOREA
In less than 10 years, South Korea has become the 10th largest merchandise-trading nation in the world. Today, with a population of 48-million people and a $960-billion GDP, not only is Korea's domestic market strong, its prospects are growing with its prominence in the emerging North Asia regional economy. Last year, Canada's exports to South Korea totalled $2.8-billion made up of coal, grains, pulp, minerals and chemicals such as potash and aluminum. Also, telecom equipment, industrial machinery, computer technology and agrifood.
TIES
Both India and China are forging closer ties as their rapid development spawns similar problems, such as a thirst for energy and concerns about tens of millions of citizens missing out on rising prosperity. The two countries have agreed not to encroach on each other's oil exploration bids in third countries after India lost out to China on several overseas exploration deals. They are also looking to maximize their negotiating leverage at the World Trade Organization and find agreement on contentious issues such as farm subsidies.
FAKE
German customs officers recently seized what could be the world's largest haul of counterfeit goods, including nearly one million pairs of Nike Inc. sneakers. The customs department in Hamburg has confiscated a total of 117 shipping containers filled with fake goods in the last half of 2006. The equivalent amount of genuine branded goods would have been US$558-million. The goods were shipped from Asia and were destined for recipients at addresses, some of them fictitious, in Italy, Hungary and Austria. Also impounded were fake watches and toys.
WOODLAND
A surprise report out of London says that a wave of reforestation could reverse the global decline in woodlands within 30 years. Analysis of the world's forests shows that many countries that presided over losses in the past are now expanding their forests. The figures reveal that amid widespread concerns over deforestation, the density of mature trees has risen over the past 15 years in 22 of the world's most forested countries. All the gains were found in countries that are relatively rich.
PERU
Canada has signed a foreign investor protection agreement with Peru that safeguards the rights of business in both countries. It's Canada's first such deal in eight years and the first significant deal since Ottawa signed a free-trade deal with Costa Rica in 2001. The Peruvian deal reflects the fact that Canadian investors have poured C$2.3-billion into the country. Ottawa is also talking to Peru, Colombia and Ecuador about launching full-fledged free-trade negotiations. Canada also hopes to resume the stalled talks on a bilateral deal with Singapore this year.
MILK
Kids love chocolate milk and drink plenty of it but at around 12 years of age, their views change. Compared with other soft drinks chocolate milk becomes too wholesome. It's a baby drink and definitely not cool! The Quebec dairy farmers knew they had an image problem and created a new campaign which involved an edgy website that allowed rebellious teenagers to "make" chocolate milk by crushing, chopping or melting chocolate animals. The campaign is credited with helping to boost chocolate milk sales by 17 per cent. That incremental volume represents 1.7-million litres, worth more than C$2.5-million in retail sales.
HIRING
The Canadian government plans to relax the rules on hiring temporary foreign workers to help Alberta and British Columbia cope with labour shortages in their booming economies. The government will allow employers in those provinces to conduct only minimum advertising for workers in Canada before being able to look abroad. The process under the existing Foreign Worker Program was much more extensive and included a long recruitment effort to ensure that no Canadians were available for the work.
AEROSPACE
The annual revenues of the Canadian aerospace industry are C$21.8-billion, which ranks fourth in the world after the U.S., U.K. and France. There are over 500 firms in the industry with 75,000 employees with an average annual salary of $60,000. Exports generated are worth $18.5-billion. Aerospace has an annual trade surplus of $3.5-billion, the only Canadian advanced technology sector with a consistent trade surplus.
WORTH
According to the U.S. government, the value of a university degree is about US$23,000 a year. This is the average gap in earnings between adults with bachelor's degrees and those with high school diplomas.
HOMES
If present trends in house prices and income growth continue, first-time house buyers in Britain will have to pay out $2.14-million to get a foothold on the property ladder in less than 20 years. The average salary in 2024 is projected to be over $300,000 Those in Greater London will see the average first-time buyer property soar above $1-million soonest, within 12 years, if house price inflation is maintained. Prices in Scotland would take the longest to achieve that price.
AUSTRALIA
According to the central bank, the worst drought in the country's history could severely cut Australia's economic growth from 1.9 per cent to 1.15 per cent. Farm output may drop by 20 per cent and farmers spending and investment levels could fall. The wheat crop is forecast to drop from 11.5-million tonnes to 9.6-million tonnes in 2006-07. Global wheat prices recently hit their highest level in ten years after Australian officials said the nations harvest could be reduced by half.
CITIES
Saudi Arabia has unveiled plans to build a US$30-billion "economic city" in the impoverished Jizan region in the south of the country. The city, 117 square kilometres in size, will feature a port, an aluminum smelter, a steel processing plant and a commercial business area as well as housing. Revenue from oil will be partly used to fund the scheme. A Malaysian conglomerate has won a tender to build much of the city. The project is expected to create 500,000 jobs.
RETURNS
With the holiday season over, retailers will now face the ugly duckling of the retail sector, returned goods. These add up to a C$10-billion headache for Canadian merchants and it is getting worse. As many as a third of retailers sales end up as returns, a new study has found. Many merchants are grappling with the dilemma of whether to tighten their return policies and risk losing customers.
MICE
Mice will take part in the 2008 Olympic Games in Beijing as food tasters. Mice show adverse reactions in 17 hours, while laboratory tests take much longer.
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