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Canada Will Not Join U.S. Airstrikes In Syria: John Baird

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MANAMA, BAHRAIN—Canada has no plans to follow its neighbour the United States in expanding airstrikes against the Islamic State group into Syria, the country’s top diplomat said Saturday during a visit to the Middle East.

In an interview with The Associated Press, Foreign Minister John Baird said Canada has a responsibility to contribute to the U.S.-led bombing campaign in part because the Islamic State group has attracted Canadian fighters to its ranks. But he insisted that support would be confined to Iraq for now.

“At this time we’re focusing on our current mission . . . We’ll stick with Iraq,” he said at a security conference in the Gulf island kingdom of Bahrain.

Canadian warplanes launched their first airstrikes against militants early last month with attacks on targets near the Iraqi city of Fallujah.

Canada has deployed six CF-18s based in Kuwait along with a C-150 Polaris and two CP-140 Aurora surveillance aircraft as its contribution to the bombing campaign against the Islamic State group, which has seized large parts of Iraq and Syria. Several hundred Canadian personnel are involved in the operation. Canada also has a training mission in northern Iraq to train and arm Iraqi Kurdish fighters there, Baird said.

The Canadian parliament in October approved up to six months of airstrikes following a request from the U.S. The motion explicitly stated that no ground troops would be used in combat operations.

Baird said more than 145 Canadians have taken up arms with the Islamic State group and like-minded extremist organizations, and that “compels us to accept our share of responsibility” in working to defeat them.

A Canadian-born woman who served in the Israeli military, Gill Rosenberg, has attracted attention in recent weeks after Israeli media reported that she joined a Kurdish militia battling the Islamic State group, which is also known by the Arabic name Daesh.

Baird urged other Canadians not to follow her lead.

“Obviously we are strongly and unequivocally discouraging all travel to either Iraq or Syria. If you want to fight Daesh, you should apply to join the Canadian forces,” he said.

Ebola Fight Sees Canadian Forces Medical Team Deployed To Sierra Leone

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A Canadian Forces medical team left CFB Trenton in Ontario on Saturday en route to Britain, where they’ll undergo training before deploying to Sierra Leone as part of the effort to combat the Ebola outbreak, the military said.


The Forces said about 40 nurses, doctors, physicians’ assistants, medics and support are to train alongside U.K. military personnel, and most of them will continue on to Sierra Leone by later this month.


"There’s no question it's a little scary, but we also have very good training and we're a team. We'll be working with the British and will be there to help people," said Cpl. Lisa Ouellette before departing for the U.K.


Lt. Melanie Espina, a physician, said contagion risks are minimal "when proper equipment is worn."


Treating health workers


The Canadian Forces team will be working at a British-built clinic in Sierra Leone treating local and international health care workers, who themselves have become infected in the course of treating Ebola patients from the general population.


The deployment is the first contingent of Canadian Forces medical staff to deploy to West Africa as part of the global anti-Ebola effort. The team is expected to remain in Sierra Leone for a maximum of six months.


The Department of National Defence announced the deployment last week.


“I am proud our Canadian Armed Force professionals and support staff members will meaningfully contribute to this important international mission," said Minister of National Defence Rob Nicholson.


The government has an evacuation plan in place after recently signing an agreement with two commercial companies, Health Minister Rona Ambrose said. 


"We have resolved the medevac issue. We didn't feel it was responsible for us to be encouraging people to go to West Africa until we felt very comfortable with the medical evacuation options for Canadians. We feel comfortable with that now," Ambrose said.


$20.9 million to help fight


Canada is also offering an additional $20.9 million to help fight the Ebola outbreak in West Africa.


The $20.9 million will be given to 10 humanitarian organizations:


- For treatment and psychological support.

- To help local communities cope with the outbreak.

- To train medical personnel and emergency experts who will be deployed to the region.

The Red Cross says it has 17 people currently on the ground, and the additional money for urgent training needs will help fill the demand for health-care workers in Ebola treatment centres in Guinea, Liberia and Sierra Leone.


"Since the beginning of this Ebola outbreak in March 2014, recruiting doctors, nurses and support staff has been our greatest challenge," said Conrad Sauvé, secretary general of the Canadian Red Cross.


With the announcement Thursday, Canada has committed $113.5 million to help in the fight against Ebola.


According to the World Health Organization, there were 15,351 reported cases and 5,459 deaths worldwide.

Uber Driver Allegedly Raped Young Female Passenger, New Delhi Police Say

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NEW DELHI - Indian police on Sunday arrested a driver from the international taxi-booking service Uber for allegedly raping a young woman in the capital.

Shiv Kumar Yadav, 32, was arrested in his hometown of Mathura, about 160 kilometres (100 miles) south of New Delhi, where the rape allegedly took place Friday, police officer Jag Niwas said.

The woman, who works at a finance company, was returning from a dinner engagement Friday night and used the mobile app Uber to hire a cab to drive her home, said another New Delhi police officer, Alma Ming.

The Press Trust of India reported that the 26-year-old woman fell asleep during the ride. When she woke up, she found the car parked in a secluded place, and the driver then threatened her and raped her, PTI said.

Police have filed a case against Yadav accusing him of raping the woman, Niwas said. He was being brought to New Delhi and was due to appear in court there on Monday.

Uber said in a statement Saturday that it had suspended the driver's account and was co-operating with authorities. "We are working with the police as they investigate, and will assist them in any way we can to determine what happened," the statement said.

Meanwhile, dozens of students scuffled with officers Sunday as they tried to enter police headquarters in New Delhi to protest the rising incidents of rape in the capital.

"I am here to protest the irregularities and failure of the state machinery, which refuses to acknowledge that rapes happen due to their failure," said Urvashi Joshi, one of the demonstrators.

The protesters, from the All India Students Association, dispersed after an hour-long demonstration.

Indian officials, who for decades did little about sexual violence, have faced growing public anger since the December 2012 fatal gang rape of a young woman on a moving New Delhi bus, an attack that sparked national outrage.

The nationwide outcry led the federal government to rush through legislation doubling prison terms for rapists to 20 years and criminalizing voyeurism, stalking and the trafficking of women. The law also makes it a crime for officers to refuse to open cases when complaints are made.

Official statistics say about 25,000 rapes are committed every year in India, a nation of 1.2 billion people. Activists, though, say that number is just a tiny percentage of the actual number, since victims are often pressed by family or police to stay quiet about sexual assaults.


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Canadian Banks' Revenue Threatened By Falling Oil Prices

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TORONTO - Oil prices that reached a five-year low on Friday are starting to take a bite out of profits at TD Bank (TSX:TD) and raising concerns for the rest of the country's top lenders.

Canada's biggest banks earn up to 20 per cent of their revenues through providing investment and corporate banking services, with oil and gas companies an important part of that client base.

But with oil prices slipping — they have tumbled roughly 35 per cent to under $70 a barrel from their mid-summer highs due to a strong U.S. dollar, low demand and a glut of global supply — TD Bank says it will have to look beyond the oilpatch to make up its investment banking revenue.

"With the current activity going on in oil pricing, it certainly is impacting activity levels in the business," Bob Dorrance, the head of TD's wholesale banking division, told investors during a conference call earlier this week after the bank reported its fourth quarter results.

"Things have slowed down."

Scotiabank was the last of Canada's five big banks to report its quarterly earnings this week, wrapping up a series of conference calls that were peppered with talk about falling oil prices.

The energy sector, a major weight on the Toronto Stock Exchange, has taken a beating on the markets and taken other stocks, including those with indirect exposure to companies that produce crude, down with it.

While all of the country's top lenders reported substantial profits during the quarter, Canaccord Genuity analyst Gabriel Deschaine noted that lacklustre performance on the stock markets caused many of the banks to report weaker than expected revenues from their brokerage businesses.

Scotia Capital analyst Sumit Malhotra says roughly 30 per cent of the underwriting fees — fees from administering new issues on the stock markets — earned by Canada's six top banks this year came from the energy sector.

A drop in commodity prices could make resource companies less likely to make a public offering on the market, said Malhotra, pointing to Teine Energy as an example. The Canadian oil and gas producer had been planning an initial public offering but a Bloomberg News report in October said the company delayed the debut due to the decline in oil prices.

"While we do not want to be too alarmist in this regard, it should be clear that the capital markets operations of the banks have played a key role in driving revenue and earnings growth for the Canadian banking sector in 2014, and any sustained period of weakness in the energy sector would be detrimental to activity levels going forward," Malhotra wrote in a note to clients.

The plummeting oil prices have also caused some concerns about whether oilpatch companies will default on their loans and create financial burdens for the banks.

The big banks say they are regularly performing stress tests on their loan portfolios to see how they will fare in a continued low oil price environment. So far they say there is no cause for concern, even if oil drops down to $60 a barrel and stays that way for up to two years.

"With oil prices, it's always about how long it goes on for," RBC's chief risk officer Mark Hughes told investors during the bank's fourth quarter conference call on Wednesday.

Nonetheless, chief risk officers at all of the big banks say they are keeping tabs on the situation.

"If oil prices remain depressed, there will be some strain on some of these loans," BMO's chief risk officer Surjit Rajpal told investors during a conference call about the bank's fourth quarter results Tuesday.

Malhotra notes that oil and gas related loans make up only about six per cent of the banks' combined business loan portfolios, and only two per cent of their entire combined loan book.

"Though an extended period of weakness in energy prices would clearly impact credit quality trends, in our view the size of the portfolio is not large enough to materially weigh on either credit or growth trends," Malhotra said.

However, there is another way that slumping oil prices could reduce the quality of the banks' loan books.

"I'm looking more at what this means at the guys working the oil fields," said Morningstar equity analyst Dan Werner. "Are they going to be out of a job because rigs are going to be shutting down? It doesn't sound like it at this point because I think the base cost of extraction is below where the price is."

But if plunging prices leave workers unemployed, that may leave them unable to make their mortgage payments, said Werner. That, in turn, would hurt the banks.

"Right now the evidence doesn't seem to be there in terms of wells being shut down yet," said Werner. "So we'll see."

Follow @alexposadzki on Twitter.


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Win/Win: What Ashley Cole And Jim Pallotta Can Teach You About Winning

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Jim Pallotta, president of Italian soccer club AS Roma, spends some quality time with Ashley Cole, a longtime star of England's national team and the team's newest defender. The two reminisce about their humble beginnings, discuss the challenges of building an enduring culture of success, and play a high stakes game of bocce ball.

Aeropostale CEO Julian Geiger: Keeping Kids From Being Teased Is Our 'Brand Promise'

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The CEO of struggling fashion retailer Aeropostale says keeping teens from being teased at school is what the brand is all about.

The teenager today wants to fit in. They want to fit in by wearing things that make them feel safe,” Julian Geiger said on a conference call last week.

“If there’s a brand promise to Aéropostale, it’s that the teenager could wear our clothes, go to school and not be teased or made fun of the way they look.”

Geiger and other senior execs were announcing Aeropostale’s latest disappointing earnings -- which, for the latest quarter, amounted to an 11-per-cent decline in same-store sales. Aeropostale’s losses doubled in the latest quarter, to $52.3 million U.S., compared with $25.6 million in the same period a year earlier.

In context, Geiger’s comments seemed less like a desperate last-ditch attempt at marketing by a struggling company, and more like soul-searching by a retailer trying to understand how it lost its grip on its core market.

Geiger suggested teens who wear Aeropostale do so in order to gain a sense of belonging.

“I still believe that while they strive for individuality in many ways, at 14 to 17 years old, they still want to be accepted by their friends and peers and that there is still a uniform that they wear that makes them cool and fitting,” Geiger said.

But Aeropostale’s understanding of what’s “cool” seems to be slipping. Like its rivals Abercrombie & Fitch and American Eagle, the retailer has struggled as teen consumers shift towards up-and-coming brands like H&M and Forever 21.

Teens’ consumption habits have shifted dramatically over the past five years, a fact Geiger acknowledged on the conference call. A recent study found that, for the first time, teens are now spending more money on food (that is, hanging out at Starbucks) than they are on clothing.

For Aeropostale, the immediate impact of that is clear: The retail chain plans to close 75 stores in the U.S. and Canada this quarter, bringing the total stores closed this year to 120. It’s looking at closing another 50 to 75 stores next year.

The chain currently has more than 990 stores in the U.S., Canada and Puerto Rico.

(H/t: Buzzfeed and Business Insider)

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S&P TSX Plunges On Concerns About Global Oil Demand

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TORONTO - The Toronto stock market plunged almost 300 points by mid-morning Monday with energy stocks taking a pounding after weak Chinese trade data raised a fresh round of concerns about oil demand.

The S&P/TSX composite index tumbled 292.33 points to 14,181.37 on top of a slide of almost two per cent last week.

The Canadian dollar declined 0.12 of a cent to 87.35 cents US.

U.S. indexes were mixed with the Dow Jones industrials down 17.72 points to 17,941.07, the Nasdaq gained 2.65 points at 4,783.41 and the S&P 500 index slipped 1.99 points at 2,073.38.

Oil prices retreated in the wake of data showing that China's exports rose by a weaker-than-expected 4.7 per cent, down from October's 10.6 per cent. Imports were forecast to post a small increase but instead contracted by 6.7 per cent from a year earlier.

China's economic growth slowed to a five-year low of 7.3 per cent in the latest quarter. The ruling Communist Party is trying to cool growth to a more sustainable level but cut interest rates last month in an apparent effort to reverse the deepening slowdown.

The Chinese trade data and a stronger American currency helped push January crude on the New York Mercantile Exchange down $1.61 to US$64.23 a barrel and the energy sector fell almost three per cent.

Crude prices have tumbled about 38 per cent since mid-summer on lower demand and a glut of supply, due in large measure to greatly increased production in the U.S. Midwest. Prices have also been depressed lately by OPEC's decision to leave production levels unchanged while Saudi Arabia last week cut prices.

The energy sector fell almost five per cent Monday in addition to a five per cent plunge last week as the price of crude settled at a five-year low.

Sharply lower crude prices were reflected in revised capital spending plans by oilpatch companies.

Precision Drilling Corp. (TSX:PD) said Monday that it's planning a $493-million capital budget for 2015, which will be down 44 per cent from what it's currently planning for capital expenditures this year. Its shares fell 52 cents or 7.6 per cent to $6.56.

Vermilion Energy (TSX:VET) said its capital spending for 2015 will come in at $525 million, down 22 per cent from its planned 2014 spending. Its shares shed $2.51 or 5.1 per cent to $46.48.

Elsewhere, Citigroup cut its rating for Canadian Natural Resources (TSX:CNQ) to neutral and its shares fell $1.50 or four per cent to $35.64.

The base metals sector lost three per cent with March copper unchanged at US$2.90 a pound.

The gold sector inched up 0.2 per cent while February gold gained $4.50 to US$1,194.90 an ounce.

Financials also weighed on the TSX, down 1.8 per cent as bank shares continued to fall back following a mixed bag of earnings reports last week.

On the merger and acquisition front, two Canadian wood product companies — Norbord Inc. (TSX:NBD) and Ainsworth Lumber Corp. (TSX:ANS) — plan to combine their businesses to create one of the world's largest producers of oriented strand board, a type of wood panel used for building homes. Norbord gained $1.14 to $25.10 and Ainsworth jumped 27 cents or nine per cent to $3.25.


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Canadian Workers Get Smaller Share Of The Economic Pie Than U.S. Workers: ILO Report

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Canadian wage earners take home less of the country’s total income than American wage earners do, according to new data from the International Labour Organization.

There are many ways to measure economic inequality, and one of them is “labour’s share of income” — the percentage of a country’s total income taken home by wage earners. The rest goes to “capital” — business owners and shareholders.

The greater the share of income taken home by labour, the more egalitarian the economy, the thinking goes.

Our modern economy is anything but egalitarian, and labour’s share of income has been shrinking for decades as business profits soar while wages stagnate.

On this measure, Canada is actually more unequal than the U.S.

According to the ILO's global wage report, released last week, Americans — by a small margin — take home more of the country’s national income than Canadians do.

Labour’s share of income in the U.S. was 56.4 per cent in 2013, compared to 56 per cent for Canada. A small difference, but unexpected, given that most other measures (such as income distribution) show Canada is considerably more equal than the U.S. when it comes to wealth.

In fact Canadian labour's share of income is among the lowest of the developed G20 countries, with only Italian and Australian workers taking home a smaller share of the income pie.

labor share of income

Most developed countries have been seeing that number slide for years. The ILO’s chart going back to 1991 shows all of the developed G20 economies seeing labour’s share of the income pie shrinking over the years.

Interestingly, Canadians’ share has been lower than Americans’ share for much of that period, and the gap today is narrower than it has been typically for years.

The report suggests that booming profits in the oil patch have something to do with this. Oil prices have risen from around $20 a barrel around the turn of the century, to above $100 a barrel in recent years before this fall’s oil price rout.

“In Canada (and also in Australia), part of the decline is tied to the rise in commodity prices; profits in the mining, oil and gas sectors in Canada doubled between 2000 and 2006,” the ILO report says.

But oil and gas wages didn’t rise at nearly the same rate, suggesting wage earners are taking home a smaller share of the oil and gas windfall than they used to.

The ILO’s labor productivity index for developed economies grew 17 per cent between 1999 and 2013, but the wage index grew 6.3 per cent, suggesting productivity gains are outstripping wage gains by nearly three to one.

productivity and wages

So why is this happening?

The conventional wisdom these days, echoed in the ILO report, is that it’s happening because of automation and globalization. When a company replaces a worker with software, or replaces an expensive worker with a cheaper one in the developing world, it pockets the difference and makes more money, while the salaries it pays out shrink.

The ILO adds two other factors: Pressure from shareholders to maximize corporate profits, and the decline of labour union influence, which some economists argue has depressed wages in developed countries.

Why does it matter?

We live in a consumer economy, and for a consumer economy to function properly, consumers need money they can spend.

If consumers’ wages are growing disproportionately slowly compared to corporate profits, this will eventually catch up with businesses and affect their bottom lines as well.

Take a look, for example, at Walmart, the bellwether of North America’s working class. The company has been struggling even as the U.S. economy has seen a broad recovery.

Employment in the U.S. jumped by 321,000 jobs last month alone, according to the Bureau of Labor Statistics, but wages are stagnating. Simply put, Walmart shoppers aren’t sharing in enough of the economy’s wealth to keep the company growing.

As some commentators have suggested, the solution to Walmart’s problem could simply be for the company (and other companies like it) to pay their workers more.

But companies don’t raise wages so that workers have a “fair” share; companies raise wages when their demand for labour outstrips the supply.

With automation reducing the need for people and the developing world essentially adding an enormous new supply of labour to the global economy, it could be a long time before that happens.

Also on HuffPost:


Canada To Invest $300 Million In Pratt And Whitney, Securing 1,500 Jobs

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MISSISSAUGA, Ont. - Ottawa has announced a $300-million investment in Pratt and Whitney Canada to help the company develop and build the next generation of jet engines.

The government says the money will help support nearly 1,500 jobs over the next five years.

Industry Minister James Moore and Infrastructure Minister Denis Lebel made the announcement at company facillities in Mississauga, Ont., and Longueuil, Que., where much of the work will be done.

The contribution by the government is a $300-million repayable contribution through its Strategic Aerospace and Defence Initiative.

Pratt and Whitney Canada employs 6,000 in Canada.

The company is building the new geared turbo fan engines that are being used on Bombardier's CSeries aircraft which is undergoing flight tests.


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Ontario Retirement Savings Plan: Liberals Introduce Bill To Create Provincial Pension Plan

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TORONTO - The Ontario government is introducing legislation to create a provincial pension plan, but says its preferred option is still to improve the Canada Pension Plan.

Finance Minister Charles Sousa says the bill clears the way for the introduction on Jan. 1, 2017, of the Ontario Retirement Savings Plan, which will be mandatory for workers who do not already have a company pension plan.

Some business groups say forcing companies to match workers' contributions to a provincial pension amounts to a "job killing" payroll tax, but Sousa calls that "an extreme view."

He says the same arguments were made when the CPP was introduced in the 1960s, insisting "they were wrong then and are wrong now."

Sousa also dismissed suggestions that the Ontario pension bill is designed to stall real progress on the issue until after next year's federal election in hopes a new government in Ottawa would be open to improving the CPP.

He says if Ontario doesn't take the necessary steps now, the province won't be ready to start the provincial pension plan on schedule.

"The reality is that a significant number of today's workers are simply not saving enough to maintain their standard of living when they retire," said Sousa.

Sexist Assignment From U Of T Business School Gets Shut Down

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If you're a business prof and want to use the plot of a Hollywood movie as your fictional example in an assignment, you might want to make sure it's not completely sexist — oh, and inaccurate — first.

A class assignment at the University of Toronto's Rotman School of Management asked students to help "Elle Forest" decide between compensation packages at her upcoming job with Tiffany & Co, reports the Toronto Star.

She turns to her fiancé, Chip, for assistance because she's “confused about the subtleties of the offer,” who helps break it down for her, but he also reminds her all of this might not matter because they may have to move to Australia for his job. Some highlights include Elle getting distracted while discussing her future and falling asleep "dreaming of those little blue boxes and beautiful shoes.”

As many people will recognize, this is a play on the character of Elle Woods, depicted by Reese Witherspoon in the "Legally Blonde" movies, where a supposedly ditzy fashion major gets into Harvard Law and proceeds to become a force to be reckoned with in the legal profession. Without, incidentally, any help from her boyfriend.

A student at Rotman sent the assignment to the Star, expressing concerns over its sexist connotations. According to the paper, Ken McGuffin, media relations manager at Rotman, said the assignment was “an ill-advised satire of a pop-culture character. The faculty involved with the course will be apologizing to the class and the assignment has been retracted and will not be used again."

A few weeks ago, "Computer Engineer Barbie" caused controversy with a story detailing the doll's attempt to design a game, only to have her crash her computer and turn to her male friends to fix it.

Business schools are unfortunately well known for their gender divisions, as Business Week pointed out in a piece earlier this year.

As Amy Edmondson, a professor at Harvard Business School, tweeted this morning, quoting Rotman's new dean, Tiff Mackelm:




Rotman, for its part, actually has in place several initiatives in an attempt to combat the problem, including best practices that tackle unconscious biases that hinder progress.


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Dx3: No Reason To Not Start A Company In Canada (VIDEO)

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Andrew Cherwenka, managing director of 500px Prime, a premium stock photo company for publishers, has a clear message to any would be entrepreneurs: Just do it.

"If you have a good idea, there's no excuse to not start a company," said Cherwenka. "Now it is so easy, there are incredible incubators and accelerators in Canada. Everything is laid out for any entrepreneur that says, 'I have a great idea, and I am willing to work hard.' "

And barriers that used to prevent Canadians from taking their ideas to the United States have been lowered as well, he says.

Watch the full video above, filmed during Dx3 Canada 2014, March 5-6 in Toronto.

Toronto, Calgary Housing Markets Show Signs Of Slowdown

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Two forward-looking measures of the health of Canada’s housing market came in stronger than expected for the country as a whole, but beneath the national data are some weak numbers for some of the country’s hottest housing markets.

It looks increasingly like the party is over for Toronto’s residential construction frenzy, while Calgary’s real estate market is taking a breather in the face of plummeting oil prices.

Housing starts in Toronto fell 34 per cent in November, compared to the same month a year earlier, according to data from Canada Mortgage and Housing Corp.

Meanwhile, StatsCan reported Monday that the value of building permits issued in the city fell 11 per cent in October, compared to a year earlier.

Condo construction was particularly hit hard, with multi-family housing starts plummeting 46 per cent over the past 12 months.

Story continues below



The data suggests that Toronto’s developers have pulled back on construction, even as demand remains strong, at least for the moment. The slowdown in future development prompted BMO economist Robert Kavcic to comment earlier this fall that Toronto’s condo boom “looks like” it’s over.

But for now Toronto is one of three cities, along with Vancouver and Calgary, that continue to see strong sales and price growth in their housing markets. Most other major markets have flattened in recent years, both in sales and prices.

But Calgary’s real estate market is also showing signs of weakness, something many observers say they expect given the large slide in oil prices in recent months, which are expected impact income and job growth in the city.

Housing starts in the city are down 36 per cent from a year earlier, according to CMHC data, while building permits are down 0.7 per cent.

Vancouver bucked the trend, with housing starts rising 10 per cent. But building permits there declined as well, by 22 per cent.

Strength in some mid-sized cities helped to keep housing starts and building permits on a positive note for the country as a whole. Edmonton, Halifax and Kitchener led housing starts to come in at a slightly hotter pace than economists had expected: 195,000 starts at an annual pace, compared to 183,000 the month before. But compared to a year earlier, starts were flat.

The value of building permits nationwide jumped by 0.7 per cent from a month earlier, or by 8.7 per cent from a year earlier. Those same three cities, along with mid-sized Ontario cities like London and St. Catharines, led the way.

Hallmark Removes 'Swastika' Gift Wrap After Shopper's Complaint

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KANSAS CITY, Mo. (AP) — Hallmark Cards Inc. has removed blue and silver gift wrap from circulation after a customer complained that she saw a swastika embedded in the design.

The Kansas City, Missouri-based company alerted retailers to the problem Monday after receiving a complaint Sunday night from a Walgreen's customer in Northridge, California. The disputed wrap was featured in a Hanukkah display but Hallmark spokeswoman Julie Elliott says the gift wrap wasn't intended for the Jewish holiday.

The Kansas City Star reports the gift wrap was distributed by Walgreen's, which is no longer selling it.

Elliott said in a news release that Hallmark didn't intend to offend anyone.

She said it was an oversight that no one at Hallmark noticed that intersecting lines in the paper could be seen as a swastika pattern.

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The Beer Store's Secret Sweetheart Deal With LCBO Revealed

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Thanks to a whistleblower, we now have the secret details of how Ontarians are being hosed by The Beer Store with the wilful involvement of elected officials.

Before stocking up for the holidays, you can read why the province remains captive of a private quasi-monopoly in beer retailing that bankrolls the richest, toughest political lobby in the province.

A still-confidential operating agreement lays bare the foundations of an inglorious cash grab that the big foreign-owned brewers who run The Beer Store don’t want you to know about. And what the government-owned LCBO is too embarrassed to show you.

Canada's Catch-22: Bankruptcies Could Soar If Economy Improves

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There is a Catch-22 in Canada’s economy, which is this: When things get good again, it will cause things to go bad.

That’s because Canadians have taken on so much debt that a rise in interest rates could tip many borrowers at the margins into insolvency.

Many market observers expect interest rates in Canada and the U.S. to start rising next year, with the U.S. Federal Reserve leading the way as the U.S. economy enjoys a widespread recovery.

CIBC economist Benjamin Tal issued a report last week noting that interest rates typically rise when the economy improves, so bankruptcies tend to come down when interest rates go up.

But after five years of rock-bottom interest rates, Canadians have taken on record levels of debt that have pushed house prices to record highs and spurred large increases in auto sales.

That makes Canadian consumers very sensitive to changes in interest rates. “We might see bankruptcies rising alongside interest rates,” Tal concluded.

In other words, when the economy is strong enough that interest rates have to rise, those interest rates will send some fraction of Canadian households into financial trouble.

Just what sort of impact are we talking about? Economist Will Dunning, who often carries out research for Canada’s mortgage industry group, estimated last year that a one-percentage-point increase in interest rates would result in a 15.3-per-cent drop in home sales in Toronto, while prices would drop 6 per cent.

That’s bad enough to be a serious drag on the economy, especially given Canada’s economy is more reliant on real estate and construction today than it has been in recent memory.

And that’s the sort of problem that can keep the governor of a central bank up at night.

Recently, the Bank of Canada's Stephen Poloz has been musing about ways to delay a hike to the bank’s key lending rate. Officials at the bank have suggested it could raise its inflation target, essentially raising the bar for when the BoC hikes rates.

Currently, the bank’s inflation target is 2 per cent, and if inflation runs hotter than that, in theory it raises rates. But after inflation hit 2.4 per cent in the latest StatsCan report, there was no talk of raising rates, just talk of changing the standards for raising rates.

That is a clear sign the bank is worried about the impact even a modest interest rate hike would have on the economy.

Officially, Poloz is worried about "slack" in the economy, hence his desire to keep rates low. But recent economic data are challenging that notion, and in any case Poloz wouldn't come out and blithely declare that the housing and auto markets would tank if rates rose.

But there is a serious risk they would. According to the CIBC report, household debt in Canada is back on the rise. Growth in borrowing had been slowing for several years, but Tal’s report shows it’s now growing at the fastest pace in nearly two years.

The upside is borrowing is still not growing as fast as it had been in the years prior to the economic crisis, and thanks to those low rates, the cost of paying interest on loans is at a record low (7.2 per cent of disposable income).

That's probably why consumers still feel comfortable taking on more debt. Stripping out mortgages, consumer credit is growing at the fastest pace in nearly two years, driven by auto loans (up 8 per cent in the past year) and by credit card debt (up 5 per cent).

There is “a significant supply push by credit providers,” CIBC's Tal writes. “Accordingly, the recent improvement in retail sales might be more leveraged than perceived.”

In other words, Canada’s economy is still being fuelled by larger and larger debt loads. And that in turn makes the Catch-22 even harder to resolve.

There is one element that could delay any improvement in Canada's economy, and therefore the inevitable interest rate rise: Falling oil prices. They're down by about 40 per cent since the summer, putting serious pressure on the economies of the resource-exporting provinces. That could create some downward pressure in the economy, which would (ironically) delay that possible wave of bankruptices as interest rates stand pat.

Between falling oil prices and rising house prices, unustainable debt levels and a job market that continues to struggle, it's really anyone's guess what the right monetary policy should be. Stephen Poloz has a tough job ahead of him.

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Meet The Most Popular Car Colours Of 2014

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Until 2011, silver reigned for ten years as car buyers' favourite exterior car colour according to the annual survey conducted by PPG. White took over in 2011, and it hasn't let up since. White extended its lead over other colours in 2014. Globally, 28 per cent of car builds were white, leading every market, with black in second in every market. Silver held third but is still in decline after its lengthy run, dropping again globally and being overtaken by red, blue and green as the favourite hues for sports cars; it did tie for first place with white in South America, though.

N.L. Premier Paul Davis Reconsidering Support Of Canada-EU Trade Deal

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ST. JOHN'S, N.L. - The premier of Newfoundland and Labrador says he is reconsidering support of Canada's free trade deal with Europe because the federal government is adding new conditions to a promised fishery fund for his province.

When the $400-million fund was announced in October 2013, then-premier Kathy Dunderdale said $280 million would come from Ottawa to pay for research and support displaced workers, with the province covering the rest.

The funding was in part to compensate for the removal of provincial minimum processing rules that protected fish plant jobs.

Premier Paul Davis says Ottawa is trying to put a monetary value on those minimum processing requirements and limit its funding commitment to the province.

Davis says the federal government is now proposing to split funds of up to $280 million among the Atlantic provinces.

He says he will meet with Prime Minister Stephen Harper in Ottawa on Wednesday to discuss the issue.



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The Consequences of Falling Oil Prices

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The price of oil has declined significantly in the last several months. The price of crude oil has decreased from over $100 a barrel to around $65 a barrel. This fall in oil price has been due to an oversupply of oil in the world market by the OPEC members. The OPEC members account for 40 per cent of global oil production. They are committed to produce 30 million barrels of crude oil a day. However, they are overproducing by 600,000 barrels a day. The supply glut is leading to a fall in oil prices. The decrease in oil price is expected to have important consequences for various countries.

Falling oil prices is expected to affect the Canadian economy. The low prices may have different effects on the Canadian economy and in various geographical locations of the country. The oil sands in Alberta require high oil prices for the extraction of oil to be feasible. A fall in oil prices may make the production of oil in Alberta economically unfeasible. This may force the oil producers to reduce their production levels; while large producers would be able to sustain the low oil prices and the resultant lower revenue and profit, small producers may face serious problems in sustaining themselves when exposed to low oil prices. The adverse effect on the oil industry may have a multiplier effect on Alberta's economy. Other industries like retail, banking or the housing industry may suffer from dampened demand due to the slowdown in the major industry, oil. This may lead to lower GDP growth and higher unemployment in the oil-rich province. Saskatchewan may also be adversely affected due to its dependence on oil production.

The fall in oil prices may lead to lower oil exports and, consequently, lower demand for the Canadian dollar. A depreciation of the Canadian dollar would be advantageous for Canadian exporters. In the last several months, the Canadian dollar has already depreciated against a soaring US dollar. It depreciated from US $1=CAD $0.94 to US $1=CAD $0.88. A further depreciation of the Canadian dollar would help Canadian exports, including manufacturing. Export of Canadian goods and services would become cheaper in the export destinations which may lead to higher sales in the destination countries. The higher exports would increase the revenue of the exporters that may motivate them to undergo expansion and increase employment. A province like Ontario would definitely benefit from a depreciating loonie. Its economy may benefit from increased exports to the US and large emerging economies like China. This may lead to higher GDP growth and increased employment in the province. Therefore, the declining oil prices may adversely impact Alberta's employment and GDP growth while benefiting exports of manufactured and non-manufactured goods and services that may favor the economy and employment figures in other provinces.

Consumers will benefit from a fall in oil prices. A decrease in oil prices would decrease the transportation cost for people as they would be spending less on fuel. This would essentially mean an increase in the purchasing power of their income which translates into an increase in their real income. Therefore, the fall in oil prices benefits the average citizen in terms of higher real income. Again, businesses that use oil as an input would experience a reduction in their cost of production. This would increase their profit margins, some of which they may pass on to the buyers of their goods and services. The buyers will benefit from lower prices of goods and services that will boost their real income. This may motivate them to increase their purchases of goods and services. On the other hand, businesses may also ramp up their production due to higher profits and increased demand. With increased demand for goods and services and higher business activity, the economy may experience a boost leading to higher growth and employment.

The fall in oil prices would affect the US economy as well. As a significant energy consumer, the US would benefit from low oil prices. Consumers would gain in terms of lower gas costs and resultant higher real income that may motivate them to increase their expenditures. Again, businesses would benefit in terms of lower cost of production and higher profits. Combined with higher demand, businesses may increase their level of production. Therefore, the falling oil prices may accelerate the recovery of the US economy. It would boost the economy that may lead to higher business activity and employment in the US economy. However, the falling oil prices may adversely affect the US shale industry. It may make energy projects economically unfeasible and lead to production becoming financially unsustainable. Therefore, the low oil prices may be unfavorable for the states that are dependent on fracking, and the US shale industry and related industries. Overall, the falling oil prices is expected to help the US economy, and revive employment and business activity.

The low oil prices is predicted to benefit other oil importers like the European Union and Japan. Both the EU and Japan are trying to recover their troubled economies through expansionary monetary policies. The falling oil prices may help them in their recovery by boosting domestic demand and revamping business activity. Also, it may improve their exports as lower oil prices would mean that exporters' cost of production would decrease, making them more competitive in the export destinations. A similar trend would be observed in China which is also an oil importer. The low oil prices may help it to increase domestic demand and production that would help to stem its dampening economic growth.

The low oil prices are harmful for oil exporting countries. It would lead to lower oil revenues for these countries. It would be particularly difficult for the countries that are mostly dependent on oil revenues for maintaining their social programs while the ones with immense oil wealth can ride out the reduced oil prices.

The falling oil prices would affect different countries in different ways. Also, it would have favorable effects on oil-importing countries while negatively impacting the oil exporting countries. Again, within countries, certain regions and industries would benefit while other regions and industries may suffer. The oil industry in countries like Canada and the US may be adversely affected in terms of curtailed production. Also, new oil exploration may be postponed, at least temporarily, as the low oil prices may make them economically infeasible. Overall, the falling oil prices is expected to benefit the world economy in terms of increased economic activity, higher demand, increased employment and, possibly, increased trade. This would boost the growth rate of the global economy and help it to recover to pre-recessionary levels.

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Quebecers, Don't Let TransCanada's Sweet Words Fool You Into Supporting the Pipeline

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In a newspaper article in Le Devoir of November 20, 2014, the spokesman for TransCanada, Mr. Duboyce, painted a rosy picture of his company's proposed oil pipeline, along with glowing words which must be in accordance with Edelman's strategic plan for public relations. He is courting Quebecers' favorable opinion with so many rosy empty words that one would believe he is watching an opera where Don Juan is wooing a beautiful young women, promising her the mirage of eternal love!

First, he asserts that pipelines are the safest mean for the transportation of large volumes of petrolium. Perhaps. However, the explosion of a TransCanada gas pipeline in Brookdale, Manitoba, in April, 2002 created some spectacular fireworks. The NEB (National Energy Board) has noted an increase in the number and severity of pipelines incidents during the last decade. Incidentally, a worldwide census of petrolium related incidents (by various modes of transportation) will bring somber second thoughts to the reader when we are reminded that one litre of oil will pollute one million litres of water.

Mr. Duboyce pursue his seductive affirmations about pipeline security: "Our remarkable safety record is the result of our commitment to base our activities on total planning processes" (my translation). Wonderful words! On the other hand, Mr. Evan Vokes, a former TransCanada employee, brought some questionable practices to the attention of its managers about pipeline safety. According to his allegations, TransCanada did not conform to NEB's guidelines about welding, thereby weakening the welds. Since the company didn't redress the situation, he filed a complaint to the NEB on may 2, 2012. Is it a coincidence if he was fired six days later? Is Mr. Vokes an incompetent troublemaker? Or is he a courageous engineer who had the guts to demand that his company should respect sound practices which would not jeopardize safety?

Mr. Duboyce's glossy pitch that its pipeline would be profitable for Quebecers sounds like an argument that has been boosted with steroids. It is a standard approach of a Don Juan who is trying to seduce public opinion in la belle province. However, everything is not rosy perfect in the obsolete economic model of the promoters of fossil fuels. For example, GazMétro and its partners are publicly complaining about TransCanada's project since it would unjustly reduce the availability of natural gas to its clients.

Would the spokesmen for TransCanada be able to give a logical explanation as to how mere transshipment of petroleum using automated pumping systems would create jobs or any worthwhile economic activity in our province? To be reduced to the status of mere handlers of raw materials will constantly put us at the mercy of fluctuating prices on the world markets for the next two generations. Since a few weeks, prices of raw materials are in a nosedive. Quebecers deserve better than to be hewers of wood and drawers of water! This is why we must transform raw materials with secondary manufacturing processes if we want to have a thriving economy. As a matter of fact, wouldn't it be better to forge ahead with the new green energies? I believe that sustainable development, based on non-fossil fuel energies, is the only way to insure a sound future for our grandchildren.

Mr. Duboyce, TransCanada and Edelman are feverishly courting Quebecers. When they speak about safety, profits and bountiful jobs, they are trying to convince us with sickly sweet words just as Don Juan is promising the beautiful heiress, eternal love and unfaltering faithfulness. These words are veneer-thick make-up which mask the truth, while underneath the only thing that really counts is the selfish self-interest of the company. On final analysis, the fable of Jean de la Fontaine describes the situation perfectly; "Tout flatteur vit au depend de celui qui l'écoute," or the profits of flatterers depends on those who are gullible enough to listen to them.

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