December 2012 Edition
LUXURY
Chinese shoppers at home and abroad are pushing global sales of luxury items to new heights, helping the sector post its third consecutive year of strong growth since the global recession. A new study forecasts that global luxury goods market for clothing, accessories, jewellery, cosmetics and art will grow ten per cent this year to US$274 billion. This represents an increase from $240 billion in 2011.
VIRUS
Malicious software, or malware, is now being installed on some Windows computers before they even leave the factory. Microsoft said that one out of five computers it tested in China was shipped with malware, the worst being a virus that connects with an illicit network of infected computers. Microsoft blames less reputable manufacturers who preload machines with counterfeit Windows software, which is more vulnerable to attack.
SUGAR
Major U.S. soft drink manufacturers are to start displaying their drinks' calories on vending machines next year and point customers towards less sugary products. This is their latest response to critics who have singled them out for contributing to the U.S. obesity epidemic. The project, which will first launch in Chicago and San Antonio aims to stop the spread of anti soda measures in municipalities after New York City moved to limit portion sizes and other cities contemplate taxes on sugary beverages.
MOTOR HOMES
Winnebago Industries has reported its highest motor home order backlog since the recession, underscoring the recovery of the U.S. recreational vehicle market. The largest motor home maker, known for its luxurious touring vehicles that provide home like comfort on the road, said total order backlog nearly doubled to 1,884 units at the end of the fourth quarter. More staff have been hired to handle the orders and it plans to increase production.
VACATION
A growing number of U.S. companies are helping their workers buy some extra time. Vacation "buy sell" programs which let employees purchase extra time off or sell days they don't expect to use, are increasingly popular. Workers who buy time, pay in instalment via payroll deduction, while those who sell get credits on their pay. Fifty one per cent of firms surveyed now offer paid time off programs compared with 42 per cent in 2009. The median full time worker in the U.S. gets 2.6 weeks vacation a year, but 57 per cent do not use their full entitlement. One Chicago building company has had a buy sell program for 20 years which has become so popular that management has had to cut the maximum purchase to one week.
CEREALS
Kellogg Co. is hoping to turn cereal into a breakfast staple in China. The company currently gets most of its revenue from North America but is seeking to developing markets in China and India where the appetite for convenience foods is growing. China is expected to be the largest food and beverage market within the next five years. This year, the cereal market in China is expected to be worth US$225 million, more than double what it was five years ago.
OIL
Mexico has discovered new deep water oil deposits with estimated reserves of 125 million barrels. The latest find was at about 2,900 meters in the Gulf of Mexico. Earlier in the year, at another well in the same region, reserves of around 300 million barrels were confirmed.
WORTH
According to Forbes, the ten most valuable sports teams in the world are worth a combined US$16 billion, up from $14.4 billion a year ago, an 11 per cent increase. Two soccer teams top the list: Manchester United and Real Madrid. Joint third are the New York Yankees and the Dallas Cowboys. Of the 50 most valuable teams, 41 are American, including all 32 NFL teams.
SUBSIDIES
Government support for agriculture in the mostly rich countries of the OECD amounted to US$252 billion in 2011, or 19 per cent of total farm receipts. The general trend for subsidies is downward: compared with the second half of the 1990s, subsidies fell in all countries. Levels of support vary widely. In Norway, Switzerland and Japan, more than half of gross farm receipts came from subsidies in 2009 11. For farmers in Australia, Chile and New Zealand, it was less than five per cent.
SPAIN
The Saudi Arabia of olive oil is Spain with its baking summers and warm winters and it accounts for half of global production. But the absence of rain this year may reduce total global supply by around 20 per cent compared with a year ago when the world was awash in over three million tonnes of olive oil. Then, high levels of production had pushed prices to a nine year low. Over the past three months, the price of extra virgin olive oil has risen by 50 per cent to about US$3,400 a tonne. Germans are using five times more olive oil and the British ten times the amount of oil compared with 1990.
TREES
The Canadian RCMP has just one member nationwide working full time as a forest crimes investigator. Thieves are targeting specific trees but curly Maple trees at around 120 years old are highly coveted for their unique grain pattern and hard wood and are used for making instruments. Typically, thieves will chop a tree into pieces and sell the raw chunks to export brokers or local businesses. A vehicle load of high quality maple can fetch up to C$6,000 from local mills who process the wood for sale to instrument makers. Cedar trees have also become a favourite target of poachers in British Columbia.
HELIUM
The balloon industry is in a down cycle due to a shortage of helium gas. Hospital radiology departments also use liquid helium to cool magnets in equipment such as an MRI scanner. Helium plant shutdowns in Algeria, Poland and Australia have contributed to the global supply and in Texas, which has one of the largest geological deposits of helium rich natural gas, a pipeline that carries about 30 per cent of global supply of helium has been closed for maintenance in July. The main target for blame is the Federal Helium Reserve which stores around about 13 million cubic feet of helium but is only allowed by law to sell a specific amount of helium annually privately.
TAXES
The Cayman Islands is losing some of its allure as it has introduced what amounts to the territory's first ever income tax. It will fall only on expatriate workers who have helped build the territory into one of the most famous, or notorious, offshore banking centres that offer tax advantages for foreign investments. The tax is a 10 per cent payroll levy on expatriates who earn more than US$36,000 a year. It is a monumental shift for a territory of 56,000 people where zero taxes and a friendly reputation have attracted 91,712 companies, including 235 banks and 758 insurance companies.
BIKES
More Americans are taking to the road on two wheels. Between 1977 and 2009, the total number of annual bike trips more than tripled. Commuting cyclists have also increased in number, with twice as many biking to work in 2009 as in 2000. Cities are increasingly vying to be bike friendly. Among them, Chicago has said it will build over 30 miles of protected cycle lanes next year. At the moment it ranks fifth. Ahead of it are Washington, DC, Boulder, Colorado, Minneapolis and Portland, Oregon.
RAIL
The Swedish government is to invest US$8.2-billion to improve its railway network after a summer of technical problems. The government says the plans will lead to more frequent, faster and more punctual rail services that will not only benefit passengers and rail cargo users, but also create jobs and growth.
WEALTH
Britain's wealth has more than doubled over the past 20 years and was equivalent to US$178,000 per person last year. The rise in the country's wealth by 3.3 per cent to $10.9-trillion came despite a poor year for the economy. Property alone is now worth $6.5-trillion and accounts for more than half of household wealth with houses and apartments more than tripling in value in the past 20 years.
APPS
Several companies in the U.K. are trying to provide a better way of finding a taxi. All are entering the fast growing market for taxi apps on mobile phones. The concept is simple: to hail a cab, just pull up an app on your phone and press a button. The app-makers then find a nearby driver looking for a fare. The customer can then watch on a map as their ride makes its way to pick them up within minutes.
WORMS
The squishy things much sought after by fishermen for bait and birds for nutrition are now being put to work treating thousands of tonnes of toxic sludge left in farms and fields by Indian factories as industrial growth has skyrocketed in recent years. The worms burrow up to five feet deep in the contaminated soil, soak up heavy metals and other toxins and come to the surface without releasing the toxins. They may then be transported to a secure long-term dump site or burned.
ACQUISITIONS
Between April and June of this year Canadian acquisitions in Europe reached C$15.1-billion, nearly 70 per cent of the record $21.8 billion Canadian companies spent taking over foreign companies.
BOOKS
Sales of children's e-books nearly tripled over the first six months of this year compared to the same period in 2011. 2.6-million of children's e-books were sold compared to one million last year at the same time. Much of the increase is due to the advances in technology which have caused the sales of digital books for children, including picture books, to take off dramatically. Experts are concerned that such a trend could result in a generation of children reading more from screens than from books.
DOWNLOADING
Canadians may complain about high internet bills and low download limits but it still isn't stopping then downloading songs like crazy. Canadians are fourth in the world for unauthorized music downloads. Only the U.S., Britain and Italy rank higher but on a per capita basis , Canadians download more unauthorized music than any other country. On a per capita basis, Canadians downloaded two and a half times as many songs as Americans.
DO NOT CALL
The Canadian Radio-television and Telecommunications Commission (CRTC) has taken action against two Indian companies for breaking Canada's telemarketing rules. The companies have been found guilty of making unsolicited telemarketing calls to Canadians who have registered their numbers with the National Do Not Call List. One company has been fined C$495,000 and the other $12,000.
POLLUTION
Vancouver B.C. is using remote sensing to measure the diesel pollution from thousands of semi-trailer trucks, dump trucks, buses and other heavy-duty vehicles. The program uses infrared and ultraviolet beams from a specialized testing trailer at the side of the road. Trucks and buses do not have to slow down or stop for the emissions testing.
ALL YOU CAN EAT
Two men in Brighton England have been banned from an all-you-can-eat restaurant after the manager branded them as "pigs".
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
Chinese shoppers at home and abroad are pushing global sales of luxury items to new heights, helping the sector post its third consecutive year of strong growth since the global recession. A new study forecasts that global luxury goods market for clothing, accessories, jewellery, cosmetics and art will grow ten per cent this year to US$274 billion. This represents an increase from $240 billion in 2011.
VIRUS
Malicious software, or malware, is now being installed on some Windows computers before they even leave the factory. Microsoft said that one out of five computers it tested in China was shipped with malware, the worst being a virus that connects with an illicit network of infected computers. Microsoft blames less reputable manufacturers who preload machines with counterfeit Windows software, which is more vulnerable to attack.
SUGAR
Major U.S. soft drink manufacturers are to start displaying their drinks' calories on vending machines next year and point customers towards less sugary products. This is their latest response to critics who have singled them out for contributing to the U.S. obesity epidemic. The project, which will first launch in Chicago and San Antonio aims to stop the spread of anti soda measures in municipalities after New York City moved to limit portion sizes and other cities contemplate taxes on sugary beverages.
MOTOR HOMES
Winnebago Industries has reported its highest motor home order backlog since the recession, underscoring the recovery of the U.S. recreational vehicle market. The largest motor home maker, known for its luxurious touring vehicles that provide home like comfort on the road, said total order backlog nearly doubled to 1,884 units at the end of the fourth quarter. More staff have been hired to handle the orders and it plans to increase production.
VACATION
A growing number of U.S. companies are helping their workers buy some extra time. Vacation "buy sell" programs which let employees purchase extra time off or sell days they don't expect to use, are increasingly popular. Workers who buy time, pay in instalment via payroll deduction, while those who sell get credits on their pay. Fifty one per cent of firms surveyed now offer paid time off programs compared with 42 per cent in 2009. The median full time worker in the U.S. gets 2.6 weeks vacation a year, but 57 per cent do not use their full entitlement. One Chicago building company has had a buy sell program for 20 years which has become so popular that management has had to cut the maximum purchase to one week.
CEREALS
Kellogg Co. is hoping to turn cereal into a breakfast staple in China. The company currently gets most of its revenue from North America but is seeking to developing markets in China and India where the appetite for convenience foods is growing. China is expected to be the largest food and beverage market within the next five years. This year, the cereal market in China is expected to be worth US$225 million, more than double what it was five years ago.
OIL
Mexico has discovered new deep water oil deposits with estimated reserves of 125 million barrels. The latest find was at about 2,900 meters in the Gulf of Mexico. Earlier in the year, at another well in the same region, reserves of around 300 million barrels were confirmed.
WORTH
According to Forbes, the ten most valuable sports teams in the world are worth a combined US$16 billion, up from $14.4 billion a year ago, an 11 per cent increase. Two soccer teams top the list: Manchester United and Real Madrid. Joint third are the New York Yankees and the Dallas Cowboys. Of the 50 most valuable teams, 41 are American, including all 32 NFL teams.
SUBSIDIES
Government support for agriculture in the mostly rich countries of the OECD amounted to US$252 billion in 2011, or 19 per cent of total farm receipts. The general trend for subsidies is downward: compared with the second half of the 1990s, subsidies fell in all countries. Levels of support vary widely. In Norway, Switzerland and Japan, more than half of gross farm receipts came from subsidies in 2009 11. For farmers in Australia, Chile and New Zealand, it was less than five per cent.
SPAIN
The Saudi Arabia of olive oil is Spain with its baking summers and warm winters and it accounts for half of global production. But the absence of rain this year may reduce total global supply by around 20 per cent compared with a year ago when the world was awash in over three million tonnes of olive oil. Then, high levels of production had pushed prices to a nine year low. Over the past three months, the price of extra virgin olive oil has risen by 50 per cent to about US$3,400 a tonne. Germans are using five times more olive oil and the British ten times the amount of oil compared with 1990.
TREES
The Canadian RCMP has just one member nationwide working full time as a forest crimes investigator. Thieves are targeting specific trees but curly Maple trees at around 120 years old are highly coveted for their unique grain pattern and hard wood and are used for making instruments. Typically, thieves will chop a tree into pieces and sell the raw chunks to export brokers or local businesses. A vehicle load of high quality maple can fetch up to C$6,000 from local mills who process the wood for sale to instrument makers. Cedar trees have also become a favourite target of poachers in British Columbia.
HELIUM
The balloon industry is in a down cycle due to a shortage of helium gas. Hospital radiology departments also use liquid helium to cool magnets in equipment such as an MRI scanner. Helium plant shutdowns in Algeria, Poland and Australia have contributed to the global supply and in Texas, which has one of the largest geological deposits of helium rich natural gas, a pipeline that carries about 30 per cent of global supply of helium has been closed for maintenance in July. The main target for blame is the Federal Helium Reserve which stores around about 13 million cubic feet of helium but is only allowed by law to sell a specific amount of helium annually privately.
TAXES
The Cayman Islands is losing some of its allure as it has introduced what amounts to the territory's first ever income tax. It will fall only on expatriate workers who have helped build the territory into one of the most famous, or notorious, offshore banking centres that offer tax advantages for foreign investments. The tax is a 10 per cent payroll levy on expatriates who earn more than US$36,000 a year. It is a monumental shift for a territory of 56,000 people where zero taxes and a friendly reputation have attracted 91,712 companies, including 235 banks and 758 insurance companies.
BIKES
More Americans are taking to the road on two wheels. Between 1977 and 2009, the total number of annual bike trips more than tripled. Commuting cyclists have also increased in number, with twice as many biking to work in 2009 as in 2000. Cities are increasingly vying to be bike friendly. Among them, Chicago has said it will build over 30 miles of protected cycle lanes next year. At the moment it ranks fifth. Ahead of it are Washington, DC, Boulder, Colorado, Minneapolis and Portland, Oregon.
RAIL
The Swedish government is to invest US$8.2-billion to improve its railway network after a summer of technical problems. The government says the plans will lead to more frequent, faster and more punctual rail services that will not only benefit passengers and rail cargo users, but also create jobs and growth.
WEALTH
Britain's wealth has more than doubled over the past 20 years and was equivalent to US$178,000 per person last year. The rise in the country's wealth by 3.3 per cent to $10.9-trillion came despite a poor year for the economy. Property alone is now worth $6.5-trillion and accounts for more than half of household wealth with houses and apartments more than tripling in value in the past 20 years.
APPS
Several companies in the U.K. are trying to provide a better way of finding a taxi. All are entering the fast growing market for taxi apps on mobile phones. The concept is simple: to hail a cab, just pull up an app on your phone and press a button. The app-makers then find a nearby driver looking for a fare. The customer can then watch on a map as their ride makes its way to pick them up within minutes.
WORMS
The squishy things much sought after by fishermen for bait and birds for nutrition are now being put to work treating thousands of tonnes of toxic sludge left in farms and fields by Indian factories as industrial growth has skyrocketed in recent years. The worms burrow up to five feet deep in the contaminated soil, soak up heavy metals and other toxins and come to the surface without releasing the toxins. They may then be transported to a secure long-term dump site or burned.
ACQUISITIONS
Between April and June of this year Canadian acquisitions in Europe reached C$15.1-billion, nearly 70 per cent of the record $21.8 billion Canadian companies spent taking over foreign companies.
BOOKS
Sales of children's e-books nearly tripled over the first six months of this year compared to the same period in 2011. 2.6-million of children's e-books were sold compared to one million last year at the same time. Much of the increase is due to the advances in technology which have caused the sales of digital books for children, including picture books, to take off dramatically. Experts are concerned that such a trend could result in a generation of children reading more from screens than from books.
DOWNLOADING
Canadians may complain about high internet bills and low download limits but it still isn't stopping then downloading songs like crazy. Canadians are fourth in the world for unauthorized music downloads. Only the U.S., Britain and Italy rank higher but on a per capita basis , Canadians download more unauthorized music than any other country. On a per capita basis, Canadians downloaded two and a half times as many songs as Americans.
DO NOT CALL
The Canadian Radio-television and Telecommunications Commission (CRTC) has taken action against two Indian companies for breaking Canada's telemarketing rules. The companies have been found guilty of making unsolicited telemarketing calls to Canadians who have registered their numbers with the National Do Not Call List. One company has been fined C$495,000 and the other $12,000.
POLLUTION
Vancouver B.C. is using remote sensing to measure the diesel pollution from thousands of semi-trailer trucks, dump trucks, buses and other heavy-duty vehicles. The program uses infrared and ultraviolet beams from a specialized testing trailer at the side of the road. Trucks and buses do not have to slow down or stop for the emissions testing.
ALL YOU CAN EAT
Two men in Brighton England have been banned from an all-you-can-eat restaurant after the manager branded them as "pigs".
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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