July 2014 Edition
TRADE
A new study for the Canadian Council of Chief Executives has concluded that Canada should declare itself a free trade zone. Removing all remaining tariffs coming into Canada would generate C$20-billion a year in economic gains making the country wealthier, more productive and a magnet for foreign investment. The economic gains, equivalent to a percentage point of gross domestic product, are roughly five times the $4-billion a year Canada now collects from import duties.
WATER
Las Vegas or Los Angeles would love to have Berlin’s problem: too much water. In the Spree valley, the water table has risen in places to just 2.5 metres below ground level. With most cellars in Berlin between two and three metres deep, that means wet basements, water damage and mould. Some 200,000 people, out of Berlin’s total of 3.4-million, live in the worst hit areas. On average Germans would be expected to use about 300 cubic metres of water annually but because of conservation measures they are using only about 200 cubic metres.
ROAMING
The European Parliament has voted to scrap roaming fees charged for using a cell phone while abroad. Under the wide-ranging telecom reforms, the cost of making a call or downloading internet data in another EU country will be the same as at home. Some UK consumers have faced bills for thousands of pounds after falling foul of current high roaming charges. The change is due to come into effect from December but still requires approval from EU governments.
DRONES
A Greek entrepreneur is planning a network of humanitarian drones for transporting cargo, which aims to help the one billion people who do not have year-round access to roads by delivering medical supplies to them. The drones can deliver parcels up to 2-kilograms in weight. In sub-Saharan Africa, 85 per cent of roads are inaccessible during the wet season, cutting off huge swaths of the population and hindering the delivery of medical supplies. Test runs have been made in Haiti and the Dominican Republic and aid agencies are being targeted as the first users.
CABLES
A new design for USB, a standardised connection for data transfer between electronic devices, has been shown off for the first time. The new connector will be reversible, bringing an end to the everyday irritant of trying to force a USB cable in the wrong way. But the rollout of new ports will take some time as manufacturers gradually incorporate them into their products. The first USB cables were introduced in the mid 1990s and, until now, could only be plugged into a computer or other device one way round to ensure a data connection.
WEDDINGS
A US wedding planner, has surveyed 13,00 brides and grooms across the country and sourced statistics on everything from location fees and tuxedo costs. It has found that tying the knot keeps growing more expensive, despite the trend for casual weddings. The average wedding cost in 2013 was about the price of a new car, or about US$30,000, excluding the honeymoon. The most expensive place to wed is Manhattan, $86,916 on average. Wedding dress costs: New York City and Long Island brides spent most on their gowns, $3,027 and $2,160 respectively while brides in Alaska and Oklahoma spent far less, $804 and $859 respectively.
AGRICULTURE
Canada’s agriculture and agri-food GDP has grown 1.4 per cent annually since 1997, despite a global economic downturn that saw many other sectors stagnate. The food and beverage manufacturing industry is the largest manufacturing industry in Canada in terms of value of production, with shipments worth C93-billion. It accounts for 16 per cent of total manufacturing shipments. Exports of manufactured food products were worth $24.6-billion in 2012, an increase of 5.6 per cent from 2011 and reached 185 countries. Approximately 25 per cent of food and beverage shipments were exported with the largest share going to the United States.
SYRUP
Quebec is the undisputed world champion of the maple syrup business but the dramatic rise in production by Vermont has industry officials casting an eye southward. Quebec’s powerful producer’s federation has hired researchers to find out what is fuelling the rapid growth where production has doubled over the past 13 years. Even with the dramatic rise, the US accounts for only 20 per cent of maple syrup production (Vermont taps about 40 per cent of US production), while Quebec accounts for most of Canada’s 80 per cent. Last year, Vermont had record production. Vermont’s three year average to start the 2000s was 1.6-million litres per year. The past three years ending 2013 saw the state produce 3.1-million litres.
CHOCOLATE
The value of the Canadian chocolate confection market is about C$2.7-billion. Nestle’s Canada has a 16 per cent share of that with its Coffee Crisp and Kit Kat brands leading in total sales. Globally the market is expected to hit almost $100-billion this year from $83-billion in 2010 largely due to a growing sweet tooth among Asian consumers. Chocolate prices were $12.25 a kilogram last year, a 45 per cent increase from 2007 which will hurt Swiss consumers who devour 11.8 kilograms of chocolate per capita each year, compared to 6.4 in Canada and 5.5 in the United States (a large chunk of which is sold around February 14th.
ALMONDS
One of America’s earliest food crops, almonds, is also one of the most important for commercial bee keepers. Almonds depend on bees for pollination but the growth of this crop taxes the honeybees that the industry needs to thrive, California produces over 80 per cent of the world’s almonds, valued at over US$4-billion in 2012. The boom is expected to continue with new food products and expanding overseas markets increasing demand, to the point that no young almond trees are available for purchase until 2016. This demand for almonds translates into demand for pollination so every year 60 per cent of all US honeybees are shipped to California and will require 1.5-million hives this year.
DIAMONDS
In 2012, the value of the worldwide retail diamond market was US$72-billion. Diamonds took a huge hit during the financial crisis and have only just recovered. Sales were up just two per cent last year. Russia has diamond reserves of more than one billion carats followed by Zimbabwe with 200-million, Canada 195-million and Congo and Brazil 180-million each.
RELIABILITY
General Motors which is already locked in a public relations crisis because of a deadly ignition defect that has triggered a recall of millions of vehicles now has another problem on its hands. A new survey of top suppliers to the car industry in the US now considers GM as the worst big auto maker to deal with. The survey asks the industry’s biggest suppliers to rate their relationships with the six auto makers that account for 85 per cent of all light vehicles sales in the US. Suppliers gave GM low marks on all kinds of key measures including its overall trustworthiness, communication skills and protection of intellectual property. Toyota and Honda finished in No.1 and 2 spots respectively.
DROUGHT
NASA scientists have begun deploying satellites and other advanced technology to help California water officials assess the state’s record drought and better manage it. The scientists are also embarking on projects that use satellite images to help more accurately measure the number of fields farmers have chosen not to plant and where land is sinking because of excessive ground-water pumping. California’s relationship with NASA began shortly after the dry year of 2009 when officials sought answers to problems exacerbated by the lack of rain and snow, such as sinking land.
COMPETITIVENESS
In a survey of 60 countries by a Swiss business school, Canada remains the seventh most competitive. The IMD International based in Lausanne, says the United States retains its No. 1 spot, reflecting the resilience of its economy. Switzerland, Singapore, Hong Kong, Sweden and Germany are also ahead of Canada. The UAE, Denmark and Norway are also in the top ten. While Europe fared better than last year because of its gradual economic recovery, the survey shows big emerging economies have dropped in the ranking as economic growth and investment slows.
WAGES
In a nation of mostly haves and have-mores, Swiss voters have rejected a poll which would have seen the nation-wide minimum wage raised to US$27.77 an hour, the world’s highest. Meanwhile, Washington State is expected to approve an increase in their minimum wage to $15.00 an hour, the highest in the United States.
WI-FI
Connectivity for wi-fi from a light bulb, or “li-fi” has come a step closer according to Chinese scientists. A micro chipped bulb can produce data speeds of up to 150-megabits per second (Mpbs). A one watt LED light bulb would be enough to provide net connectivity to four computers it is claimed. Li-fi, also known as visible light communications, at these speeds would be faster, and cheaper, than the average Chinese broadband connection.
FILMING
US authorities have said they are considering allowing the film and television industries to use drones. The Federal Aviation Authority feels there could be tangible economic benefits but cautions about safety issues. Businesses have been pushing hard for permission to use drones which are much less expensive to run than manned aircraft. However, the FAA is concerned about the fact that the US has some of the busiest airspace in the world and it needs to be sure that drones can be integrated with existing commercial and military traffic.
RAIN
Scientists at the Delft University of Technology in the Netherlands would like to turn umbrellas into rain gauges. The smart umbrella has a sensor that detects raindrops falling on its canvas and uses bluetooth to send this information via a phone to a computer Though we have radar and satellites, rain is not being measured on the ground and scientists are relying on an ever dwindling number of scientific gauges which are expensive to maintain.
FOOD
The US$3.9-billion nut-based and sweet spread category grew 34 per cent from 2008-13 and is forecasted to reach $6.5-billion by 2018, a 65 per cent increase. Due in part to countless new product launches, including industry-leading Nutella, such products maintain high household penetration rates and have become pantry staples. One in five consumers surveyed (20 per cent) say they want to see more indulgent nut-based spread, such as raspberry, white chocolate or chocolate chip. From 2009-13 there was a 97.7 per cent increase in new products.
DUTY-FREE
The abolition of duty-free sales within the European Union in 1999 looked like the end of a big chunk of business. But since 2009, sales have grown by more than 12 per cent a year. Half the growth comes from a rise in the number of passengers, especially from places like China. A bit is inflation and the rest comes from travellers’ greater appetite for shopping. Once passengers are through security they are at a loose end and most are relatively prosperous. Airport retailers know the flight schedules and shopping habits of travellers according to their boarding cards and are primed to receive them. Sales at airports alone are forecast to grow by 73 per cent from 2013 to 2019. In 2013, travel retailers sold around US$60-billion worth of goods.
SIZE
Though the engineers measured them, nearly 1,300 French stations are a few centimetres too narrow to take the order of 341 new trains to be introduced between now and 2016. It will cost US$68-million to fix the problem.
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