May 2013 Edition
LOBSTER
Last year, C$4.1-billion worth of Canadian seafood landed on tables in more than 100 countries. with lobster remaining the most valuable export. More than 60 per cent of Canada's seafood exports were shipped to the U.S. last year at a value of $2.6-billion but China and the European Union remain major markets, each taking in hundreds of millions of dollars worth of Canadian seafood products last year. Canada has a significant opportunity to gain preferential access to the European Union, a 500-million consumer market and the world's largest importer of fish and seafood, importing an average of $25-billion annually.
OIL
China overtook America last December as the world's biggest oil importer for the first time. America's net oil imports slid to 5.98-million barrels a day, the lowest since February 1992, while China's rose to 6.12-million. America's reliance on oil imports has fallen as domestic production has surged to 7-million barrels a day, mostly because of the boom in shale oil.
PAINT
A German food company has invented an edible spray paint for people wanting to give meals a splash of colour. The cans, called Food Finish, come in gold, silver, red and blue. The spray paint has no taste by itself and can be applied to any item of food to offer a quirky alternative to regular meals. Cooking enthusiasts must spray the paint layer by layer and wait for it to dry to enjoy the perfect finish.
LOANS
There are disturbing signs that the number of Canadian students defaulting on their loans is rising. Recently, the government announced it was writing off more than 44,000 student loans that were in default, totalling C$231-million. That represents loans that the government has been trying to collect for more than six years, after which it is barred from going after debtors under the Canada Student Financial Assistance Act. The default amount has more than doubled since 2010 when the government wrote off $89-million. In total, $540-million has been written off over the last three years.
TRAFFIC
Global internet traffic continues to grow. Over the past five years the amount of active capacity on subsea cables has grown threefold, the fastest spurt since the internet went mainstream more than a decade ago. Then, the majority of traffic flowed between the U.S. and Europe. Now, trans-Atlantic bandwidth accounts for only a quarter of the capacity in use. The fastest growing region for traffic is Asia. Intra-Asian connections have overtaken the trans-Pacific ones. New undersea cable links for sub-Sahara Africa have given the continent more connectivity at lower cost.
TREES
The scourge has come from Asia and has destroyed tens of millions of trees in America. Now Massachusetts has become the latest state to impose a quarantine on ash-wood in an effort to halt its spread. The emerald ash borer has already wrought havoc in 17 other states and in Canada, depleting stocks of a valuable hardwood used to make baseball bats, flooring, tool handles and kitchen cabinets, among other things. The metallic green beetle was discovered in Michigan in 2002 but probably arrived years earlier in wooden packing material aboard a ship that docked near Detroit.
MUSIC
Sales of recorded music grew in 2012 for the first time since 1999, albeit by only 0.3 per cent. The internet sank the music industry but is now helping it to resurface. Digital sales rose 9 per cent last year; a third of the industry's revenue now comes through digital channels. Download stores represents roughly 70 per cent of digital revenues. Over 100 countries now host digital music services for download and streaming, compared with only 23 in January 2011.
BONUSES
The bonus pool for people working in the securities industry in the city of New York rose by 8 per cent last year, to US$20-billion. And with fewer workers to divide the spoils, the average bonus increased to $121,800. The industry employed 1,000 fewer workers last year and has only regained 30 per cent of the jobs lost during the financial crisis. Business and personal income tax from Wall Street used to make up around 20 per cent of the state's tax revenues: last year it was only 14 per cent. The average pay for someone on Wall Street, including bonuses, has risen to almost $362,900, over five times more than New York's other private-sector workers.
ENERGY
General Electric became the world's biggest manufacturer of wind turbines in 2012. Vestas, a Danish company, had held the top spot since 2000. It has struggled recently, partly because the European push for wind power has been curtailed by the debt crisis. GE on the other hand, benefitted from activity in the U.S. to install turbines ahead of the expiration of a tax break, which was subsequently extended.
ATTENDANCE
When Pele signed a contract for US$4.7-million with the New York Cosmos in 1975, the great Brazilian was said to be the highest paid athlete in the world. Football in America is in a very different state now. More high-schoolers play soccer than baseball. One recent ESPN poll showed that Americans between the ages of 12 and 24 ranked professional soccer as their second favourite sport, behind only American football. Attendance at Major League Soccer matches is now higher than at National Hockey League and National Basketball Association games.
SPAM
A recent study in the Netherlands has found that about 50 per cent of all junk e-mail emerges from 20 internet service providers. A survey of more than 42,000 ISPs tried to map the nets "bad neighbourhoods" to help pinpoint sources of malicious mail. Of the 42,201 ISPs studied, about 50 per cent of all junk mail came from just 20 networks. Many of these were concentrated in India, Vietnam and Brazil. On the net's most crime-ridden network, Spectranet in Nigeria, 62 per cent of all the addresses controlled by that ISP were seen to be sending out spam.
COSMETICS
A complete ban on the sale of cosmetics developed through animal testing has taken effect in the EU. The ban applies to all new cosmetics and their ingredients sold in the EU, regardless of where in the world testing on animals was carried out. The 27 EU countries have had a ban on such tests in place since 2009, but the EU is now asking the EU's trading partners to do the same.
WATER
In 2011, about 22 per cent of Canadian households reported that they drank primarily bottled water at home, down from 24 per cent in 2009 and 30 per cent in 2007. In contrast, 68 per cent reported that they drank primarily tap water, an increase from 66 per cent in 2009. Households are increasingly using water conservation devices in the home. About 63 per cent reported using low-flow shower heads, more than twice the proportion of 28 per cent in 1991. 47 per cent of households have low-volume toilets, a five fold increase from 9 per cent in 1990 and more than twice the proportion of 28 per cent in 1991.
HERITAGE
According to the Census, there are 34.5-million Americans who list their heritage as either primarily or partially Irish. That number is seven times larger than the population of Ireland itself (4.68-million). Irish is the second-most common ancestry among Americans, falling just behind German. New York has the most concentrated Irish population, 12.9 per cent of its residents claim Irish ancestry, followed by Boston. Miami is the least Irish city along with Southern Texas.
COMPETITION
U.S. Federal agencies awarded US$115.2-billion in no-bid contracts in fiscal year 2012, an 8.9 per cent increase from $105.8-billion from 2009. In 2009, contracts awarded without competition made up about 20 per cent of total dollars awarded, compared with 23 per cent in 2012. Lockheed Martin the Number one U.S. contractor, captured the greatest share of no-bid contracts with about $17.4-billion. Boeing received the second largest amount, about $17.1-billion and Raytheon was third with about $7.04-billion.
KENYA
The Great Rift Valley in Kenya is a 700-kilometre volcanic trench ripped open by shifting tectonic plates, known as the cradle of mankind for the million-old remains of human forebears discovered there. Oil drillers say the area also holds a string of fields that could make East Africa's largest economy, a major energy producer. It is estimated that the valley could yield 10-billion barrels, enough to supply Kenya for three centuries, or the U.S. for about 18-months.
SEEDING
Chile's government will carry out a record cloud-seeding program in 2013 to alleviate a fourth year of drought that's hurting the country's fruit and wine industries.Seeding in other regions of Chile helped reduce a shortage in rainfall by 10 per cent. The government pumped US$152-million last year into its irrigation program that includes artificial dams and cloud seeding.
DIESEL
Demand for diesel fuel has long been a signal of financial health as trucks surge onto the roads in good times and stay parked when the economy slows. But amid broader shifts in the transportation industry such as tightening fuel economy standards, cargo diversion onto more efficient trains and conversion to natural gas powered trucks, diesel has become disconnected from economic growth. U.S. diesel demand has steadily fallen since mid-2011 and in January was down nearly 9 per cent. At the same time, trucking activity grew some 2.5 per cent in 2012.
FISH
Scientist have warned that a fishing rethink is needed after finding that catches of fish trigger a rapid change in the gene pool of fish stocks. Over-harvesting larger fish leads to a population of smaller fish that are less fertile and these changes happen within just a few generations. These findings could have a massive impact for the future of global fishing policies.
ABSINTHE
A vote by the European Parliament has left the EU divided over how to define absinthe, the intensely alcoholic drink nicknamed "the green fairy." After its heyday in the 19th Century it was the subject of a long ban in much of Europe, only lifted in recent years. Today it is produced across Europe, from Italy to the Czech Republic. The drink comes in a variety of flavours and colours and at issue is whether absinthe needs to contain minimum levels of two substances, anethole and the chemical thujone, a toxin extracted from wormwood, which reputedly has mind-altering effects.
CAMEL MILK
Once the sole preserve of nomadic Somali and Middle East communities, camel milk, which is semi-skimmed, three times as rich in vitamin C as cows' milk and packed with antibodies is increasingly being recognised for its health benefits by the Food and Agriculture Organization (FAO) and health conscious consumers. In Nairobi, camel milk is now available in restaurants and supermarkets. Camels can produce milk during the dry season and in times of drought.
TECHNOLOGY
A Brazilian doctor faces charges of fraud after being caught on camera using silicon fingers to sign in for work for absent colleagues. The prosthetic fingers were used to fool the biometric attendance device.
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
Last year, C$4.1-billion worth of Canadian seafood landed on tables in more than 100 countries. with lobster remaining the most valuable export. More than 60 per cent of Canada's seafood exports were shipped to the U.S. last year at a value of $2.6-billion but China and the European Union remain major markets, each taking in hundreds of millions of dollars worth of Canadian seafood products last year. Canada has a significant opportunity to gain preferential access to the European Union, a 500-million consumer market and the world's largest importer of fish and seafood, importing an average of $25-billion annually.
OIL
China overtook America last December as the world's biggest oil importer for the first time. America's net oil imports slid to 5.98-million barrels a day, the lowest since February 1992, while China's rose to 6.12-million. America's reliance on oil imports has fallen as domestic production has surged to 7-million barrels a day, mostly because of the boom in shale oil.
PAINT
A German food company has invented an edible spray paint for people wanting to give meals a splash of colour. The cans, called Food Finish, come in gold, silver, red and blue. The spray paint has no taste by itself and can be applied to any item of food to offer a quirky alternative to regular meals. Cooking enthusiasts must spray the paint layer by layer and wait for it to dry to enjoy the perfect finish.
LOANS
There are disturbing signs that the number of Canadian students defaulting on their loans is rising. Recently, the government announced it was writing off more than 44,000 student loans that were in default, totalling C$231-million. That represents loans that the government has been trying to collect for more than six years, after which it is barred from going after debtors under the Canada Student Financial Assistance Act. The default amount has more than doubled since 2010 when the government wrote off $89-million. In total, $540-million has been written off over the last three years.
TRAFFIC
Global internet traffic continues to grow. Over the past five years the amount of active capacity on subsea cables has grown threefold, the fastest spurt since the internet went mainstream more than a decade ago. Then, the majority of traffic flowed between the U.S. and Europe. Now, trans-Atlantic bandwidth accounts for only a quarter of the capacity in use. The fastest growing region for traffic is Asia. Intra-Asian connections have overtaken the trans-Pacific ones. New undersea cable links for sub-Sahara Africa have given the continent more connectivity at lower cost.
TREES
The scourge has come from Asia and has destroyed tens of millions of trees in America. Now Massachusetts has become the latest state to impose a quarantine on ash-wood in an effort to halt its spread. The emerald ash borer has already wrought havoc in 17 other states and in Canada, depleting stocks of a valuable hardwood used to make baseball bats, flooring, tool handles and kitchen cabinets, among other things. The metallic green beetle was discovered in Michigan in 2002 but probably arrived years earlier in wooden packing material aboard a ship that docked near Detroit.
MUSIC
Sales of recorded music grew in 2012 for the first time since 1999, albeit by only 0.3 per cent. The internet sank the music industry but is now helping it to resurface. Digital sales rose 9 per cent last year; a third of the industry's revenue now comes through digital channels. Download stores represents roughly 70 per cent of digital revenues. Over 100 countries now host digital music services for download and streaming, compared with only 23 in January 2011.
BONUSES
The bonus pool for people working in the securities industry in the city of New York rose by 8 per cent last year, to US$20-billion. And with fewer workers to divide the spoils, the average bonus increased to $121,800. The industry employed 1,000 fewer workers last year and has only regained 30 per cent of the jobs lost during the financial crisis. Business and personal income tax from Wall Street used to make up around 20 per cent of the state's tax revenues: last year it was only 14 per cent. The average pay for someone on Wall Street, including bonuses, has risen to almost $362,900, over five times more than New York's other private-sector workers.
ENERGY
General Electric became the world's biggest manufacturer of wind turbines in 2012. Vestas, a Danish company, had held the top spot since 2000. It has struggled recently, partly because the European push for wind power has been curtailed by the debt crisis. GE on the other hand, benefitted from activity in the U.S. to install turbines ahead of the expiration of a tax break, which was subsequently extended.
ATTENDANCE
When Pele signed a contract for US$4.7-million with the New York Cosmos in 1975, the great Brazilian was said to be the highest paid athlete in the world. Football in America is in a very different state now. More high-schoolers play soccer than baseball. One recent ESPN poll showed that Americans between the ages of 12 and 24 ranked professional soccer as their second favourite sport, behind only American football. Attendance at Major League Soccer matches is now higher than at National Hockey League and National Basketball Association games.
SPAM
A recent study in the Netherlands has found that about 50 per cent of all junk e-mail emerges from 20 internet service providers. A survey of more than 42,000 ISPs tried to map the nets "bad neighbourhoods" to help pinpoint sources of malicious mail. Of the 42,201 ISPs studied, about 50 per cent of all junk mail came from just 20 networks. Many of these were concentrated in India, Vietnam and Brazil. On the net's most crime-ridden network, Spectranet in Nigeria, 62 per cent of all the addresses controlled by that ISP were seen to be sending out spam.
COSMETICS
A complete ban on the sale of cosmetics developed through animal testing has taken effect in the EU. The ban applies to all new cosmetics and their ingredients sold in the EU, regardless of where in the world testing on animals was carried out. The 27 EU countries have had a ban on such tests in place since 2009, but the EU is now asking the EU's trading partners to do the same.
WATER
In 2011, about 22 per cent of Canadian households reported that they drank primarily bottled water at home, down from 24 per cent in 2009 and 30 per cent in 2007. In contrast, 68 per cent reported that they drank primarily tap water, an increase from 66 per cent in 2009. Households are increasingly using water conservation devices in the home. About 63 per cent reported using low-flow shower heads, more than twice the proportion of 28 per cent in 1991. 47 per cent of households have low-volume toilets, a five fold increase from 9 per cent in 1990 and more than twice the proportion of 28 per cent in 1991.
HERITAGE
According to the Census, there are 34.5-million Americans who list their heritage as either primarily or partially Irish. That number is seven times larger than the population of Ireland itself (4.68-million). Irish is the second-most common ancestry among Americans, falling just behind German. New York has the most concentrated Irish population, 12.9 per cent of its residents claim Irish ancestry, followed by Boston. Miami is the least Irish city along with Southern Texas.
COMPETITION
U.S. Federal agencies awarded US$115.2-billion in no-bid contracts in fiscal year 2012, an 8.9 per cent increase from $105.8-billion from 2009. In 2009, contracts awarded without competition made up about 20 per cent of total dollars awarded, compared with 23 per cent in 2012. Lockheed Martin the Number one U.S. contractor, captured the greatest share of no-bid contracts with about $17.4-billion. Boeing received the second largest amount, about $17.1-billion and Raytheon was third with about $7.04-billion.
KENYA
The Great Rift Valley in Kenya is a 700-kilometre volcanic trench ripped open by shifting tectonic plates, known as the cradle of mankind for the million-old remains of human forebears discovered there. Oil drillers say the area also holds a string of fields that could make East Africa's largest economy, a major energy producer. It is estimated that the valley could yield 10-billion barrels, enough to supply Kenya for three centuries, or the U.S. for about 18-months.
SEEDING
Chile's government will carry out a record cloud-seeding program in 2013 to alleviate a fourth year of drought that's hurting the country's fruit and wine industries.Seeding in other regions of Chile helped reduce a shortage in rainfall by 10 per cent. The government pumped US$152-million last year into its irrigation program that includes artificial dams and cloud seeding.
DIESEL
Demand for diesel fuel has long been a signal of financial health as trucks surge onto the roads in good times and stay parked when the economy slows. But amid broader shifts in the transportation industry such as tightening fuel economy standards, cargo diversion onto more efficient trains and conversion to natural gas powered trucks, diesel has become disconnected from economic growth. U.S. diesel demand has steadily fallen since mid-2011 and in January was down nearly 9 per cent. At the same time, trucking activity grew some 2.5 per cent in 2012.
FISH
Scientist have warned that a fishing rethink is needed after finding that catches of fish trigger a rapid change in the gene pool of fish stocks. Over-harvesting larger fish leads to a population of smaller fish that are less fertile and these changes happen within just a few generations. These findings could have a massive impact for the future of global fishing policies.
ABSINTHE
A vote by the European Parliament has left the EU divided over how to define absinthe, the intensely alcoholic drink nicknamed "the green fairy." After its heyday in the 19th Century it was the subject of a long ban in much of Europe, only lifted in recent years. Today it is produced across Europe, from Italy to the Czech Republic. The drink comes in a variety of flavours and colours and at issue is whether absinthe needs to contain minimum levels of two substances, anethole and the chemical thujone, a toxin extracted from wormwood, which reputedly has mind-altering effects.
CAMEL MILK
Once the sole preserve of nomadic Somali and Middle East communities, camel milk, which is semi-skimmed, three times as rich in vitamin C as cows' milk and packed with antibodies is increasingly being recognised for its health benefits by the Food and Agriculture Organization (FAO) and health conscious consumers. In Nairobi, camel milk is now available in restaurants and supermarkets. Camels can produce milk during the dry season and in times of drought.
TECHNOLOGY
A Brazilian doctor faces charges of fraud after being caught on camera using silicon fingers to sign in for work for absent colleagues. The prosthetic fingers were used to fool the biometric attendance device.
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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