October 2012 Edition
SERVICES
The
U.S. was the world's biggest exporter of services last year, with 13.9
per cent of the US$4.1-trillion total. Britain was next followed by
Germany. The U.S. also complains the most having brought 20 trade
disputes to the World Trade Organization since 2006. However, the WTO
recently ruled in favour of some of America's complaints against China.
The world's biggest merchandise exporter is China with 10.4 per cent of
the world's total.
BOOKS
The
U.S. book market declined 2.5 per cent in 2011 as sales of lower-priced
e-books more than doubled. Publishers generated US$27.2-billion in book
sales, down from $27.9-billion in 2010. Sales of trade books-adult
fiction, nonfiction, children's books and others-were little changed at
almost $14-billion. E-books in the category more than doubled to
$2.07-billion, although print remained dominant, with $11.1-billion. The
industry lost revenue because of the proliferation of e-books.
VISITORS
One
bright tourism trend is the increase in the number of visitors to
Canada from Asia, particularly Mainland China. In the first five months
of 2012, residents from China made 115,200 trips to Canada, a 22.9 per
cent increase from the same period in 2011. China has now overtaken
Australia as the fourth largest overseas market for visitors to Canada,
behind the UK, France and Germany. China is now one of the world's most
influential markets for international travellers. More than 77-million
Chinese are expected to take a trip overseas this year.
FEES
Canada's
broadcast regulator says that an obscure fee that cable companies
charge to fund local television content is being scrapped and the
companies have until this fall to explain how the fee will be removed
from customers' bills. The fund was originally created to ensure that
television stations had the resources to meet Canadians' needs for local
programming. Starting in 2008, cable and satellite firms were ordered
to pay into the C$100-million fund to protect Canadian content.
FARMING
Not
long ago, American farmers were expecting bumper harvests and the
prices of grains and oilseeds were falling. Since then, a severe
heatwave has hit the Midwest wilting crops and sending prices soaring.
Soyabeans have hit a record of US$16 a bushel. World stocks of the
oilseed which is crushed for animal feed are already low following a
drought in South America. Yields of maize stocks will be at their lowest
since 2003. Higher feed prices will depress American beef and poultry
production and will likely affect other food prices as well.
CHARGING
Scientists
at the University of South Carolina have found a way to use a cheap
T-shirt to store electrical power. It could pave the way for clothes
that are able to charge phones and other devices. Fibres in the fabric,
when soaked in a solution of fluoride and baked, convert from cellulose
to activated carbon. By using small parts of the fabric as an electrode,
the researchers showed the material could be made to act as a capacitor
and store an electrical charge. Capacitors are components of nearly
every electronic device on the market.
TEXTING
New
research shows that people in the UK are now more likely to text than
to make a phone call. While 58 per cent of people communicated via text
on a daily basis in 2011, only 47 per cent made a daily phone call. The
shift away from traditional ways of keeping in touch is being led by
young people aged 16-24. The average UK consumer now sends 50 text
messages a week, while fewer calls are being made on both fixed and cell
phones. In 2011, for the first time, there was a drop in cell phone
calls by one per cent while landline calls were down by 10 per cent and
overall time spent on the phone was down by five per cent.
HEALTH CARE
After
nearly a decade of generous increases, health-care spending across the
34 countries of the OECD was largely flat in 2010. Spending increased by
an annual average of 4.8 per cent between 2000 and 2009. In 2010, eight
countries cut spending while only three increased it by more than three
per cent in real terms. Austerity-hit Ireland and Greece cut their
health spending by 7.6 per cent and 6.5 respectively. In 2010 OECD
governments spent an average of 9.5 per cent of their GDP on health
care, up from 6.9 per cent in 1990. The U.S. spends by far the greatest
amount at 17.6 per cent of its national income.
CALLS
The
U.S. government has announced a crackdown on computer-controlled,
pre-recorded phone calls. The Federal Trade Commission is calling on
telecom and marketing industry leaders to attend a meeting about the
issue this month. The FCC wants to explore innovations that could let it
trace where such calls come from and prevent the use of faked caller
IDs. The U.S. made it illegal to make unwanted calls in 2009. Experts
believe many offenders operate by routing calls via the internet from
offshore centres, making it hard for the U.S. to completely eradicate
the problem.
NOISE
The
Canadian government has launched a study of the health impacts of
turbine noise on people living near wind power developments. The study
will focus on 2,000 homes at 8 to 12 wind installations. It will measure
individuals' blood pressure and test hair samples and interview people
about annoyance, sleep quality and stress. The results will be published
in 2014. While the wind industry has always claimed there is no
evidence of direct health impacts from turbines, anti-wind advocates say
there are ample reports proving that people are suffering.
DRUGS
India
is moving ahead with ambitious plans to spend nearly US$5-billion to
supply free drugs to patients, bringing the nation closer to universal
health coverage. This is part of the government's latest five year
spending plan (2012-2017) and should start this month. The central
government will pay $3.61-billion while India's 29 states will be asked
to pay the balance. This initiative will be a giant step in expanding
access to medicine in the country of 1.2-billion people.
TRADE
Top
metals consumer China and world No.1 copper producer Chile plan to
double their bilateral trade to US$60-billion by 2015. Until now, China
has made relatively few investments in the Andean country, despite being
its main trade partner and sharing a free-trade agreement. The two
countries have also signed an agreement to give investors security for
their investments in either of the two countries.
RAIL
California
law makers have approved financing for a bullet train that would
eventually become part of the first dedicated high-speed line in the
U.S. Approval was given for a 130 mile (209km) stretch, part of a larger
line proposed to run from Los Angeles to San Francisco. The final cost
of the LA-San Francisco line is estimated at US$68-billion. The vote
allows California to use $3.2-billion in federal funding. The project is
essential because of population growth. California's budget is
presently $16-billion in the red.
WOMEN
The number of women in the top ranks of Canada's largest companies has
climbed by less than one percentage point over the past two years, a
glacial pace of change that means many firms are vastly underutilizing
talented women. A review of almost 500 companies found that 17.7 per
cent of senior officer positions were held by women in 2010, a modest
increase from 16.9 per cent in 2008. Crown corporations lead with 27 per
cent of top jobs filled by women.
SCOTCH
The
export value of Scotch whisky, which has proved virtually impervious to
the global economic slowdown, rose by 71 per cent between 2006 and 2011
to US$6.72-billion. Over the same period, food exports have risen by a
similarly impressive 65 per cent. Much of this is salmon. Scottish
producers rushed to fill a gap in the world market when disease affected
Chile's salmon exports a few years ago.
GROCERIES
Statistics
from the U.S. Commerce Department show that the U.S. grocery market
grew to US$645-billion last year from $568-billion in 2007, a 14 per
cent growth in four years. Warehouse clubs and supercentres remain the
key competitor to supermarkets, despite all the coverage of dollar and
drug stores. The supermarket share of the total grocery market has
dropped again from 59.2 per cent in 2010 to 58.9 per cent in 2011.
TIRES
By
adding rubber "crumbs", reclaimed from shredded tires, to the bitumen
and crushed stone used to make asphalt, engineers are designing quieter
streets. First used experimentally in the 1960s, this rubberized, softer
asphalt cuts traffic noise by around 25 per cent. Even better, it also
lasts longer than the normal sort. Enough tires are recycled each year
in the U.S. to produce 20,000-lane miles. Rubber roads are popular in
China, Brazil, Spain and Germany.
LAND
Canada's
prime shopping strips are cheap compared to big cities around the
world. The most expensive is a strip of Bloor Street in the Yorkville
area of Toronto which features some of the country's fanciest designer
stores and is worth US$310 per square foot, making it the 34th most
expensive strip in the world. Top spot is New York's Fifth Avenue at
$2,633, a gain of 22 per cent in the past year.
ADS
A
far-reaching ban on advertising alcohol advertising has gone into
effect in Russia, part of a campaign to tackle the country's drinking
problems. The ban prohibits alcohol advertising on television, radio,
the internet, public transit and billboards. And as of next year, the
ban will also apply to print media. Russian alcohol consumption is
double the critical level set by the World Health Organization.
LOBSTER
It
used to be that lobster was considered a luxury. But thanks to an
abundance of the soft-shell crustaceans in recent months, it is no
longer a meal for special occasions. An excess supply in Maine has
driven prices to under US$4 a pound making the sea creature cheaper per
pound than deli meat in some cases.
LOYALTY
Recent
consumer research shows that when consumers search for online coupons
and savings, 62 per cent search for store related deals and 24 per cent
for product specific coupons, while only 14 per cent search specifically
for brand name product discounts online. Nearly half of U.S.
consumers--88.2-million-- will use online coupons and codes in 2012 and
it is estimated that by the end of 2013, 96.8-million U.S. adults will
have used such discounts.
LOANS
China
has offered to set up a US$10-billion credit line for Latin American
countries to support infrastructure projects. China has been keen to
increase trade in the area and with many of the Latin American countries
still at the development stage, they are anxious to build new
infrastructure in a bid to boost economic growth.
CONVENIENCE
Islamic
worshippers may now purchase "e-rugs." These are prayer mats with a
built in alarm for the five daily prayer times and a compass that points
towards Mecca.
Thank you for reading the A & A Economic News Digest. For more
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