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TSX has its first decline in 4 trading days

Declines in its financials and materials sectors helped push the Toronto Stock Exchange to its first loss in four trading days on Tuesday.


The S&P/TSX started the day on a high note, but by the close had lost 135.85 points, or 1.04 per cent, to end at 12,916.63. Nine of the 10 sub-indexes declined, led by financials and materials, which dropped 1.12 and 2.12 per cent, respectively.


In the commodities markets, oil lost 34 cents to close at $86.72 U.S. a barrel, while gold pared earlier gains of more than $15 to close at $1,410.10 U.S. an ounce, an increase of just $6.90.


The junior Venture exchange lost 36.81 points, or 1.80 per cent, to close at 2,005.03.


The Canadian dollar, which earlier in the day had broken through parity, declined to close at 99.27 cents U.S., a loss of 36 basis points as the U.S. greenback gained ground Tuesday afternoon.


The S&P/TSX had gained three per cent between last Wednesday, when the U.S. Federal Reserve announced an additional $600 billion in quantitative easing measures, and Monday's close.


"The market's had a heck of a run," Irwin Michael, a money manager at ABC Group of Funds in Toronto, told Bloomberg. "Now we have to see the meat and potatoes. It can't only be the Fed. We'd like to see continuation of good corporate earnings. We'd like to see the economy pick up. We'd like to see a little better hiring like we saw last week, such that it's not a one-month wonder."


In the U.S., the Dow Jones industrial average closed at 11,346.75, with a loss of 60.09 points, or 0.53 per cent. The Nasdaq composite index had its first loss in six days, falling 17.07 points or 0.66 per cent, to 2,562.98.


Bank stocks dropped on the Toronto exchange after CIBC analyst Robert Sedran said the industry is in a "sluggish operating environment" and that the "near-term upside" is limited.


Toronto Dominion's stocks dropped 1.27 per cent to $73.65, Royal Bank of Canada fell 1.54 per cent to $54.40 and Bank of Montreal declined 2.26 per cent to $59.37.


Gold miners' stocks fell as the U.S. dollar gained on Tuesday: Eldorado Gold lost 5.56 per cent to $18.00 and Goldcorp Inc. shares fell 2.59 per cent to $46.63.


Quebecor Inc. shares gained 4.89 per cent to $37.29 after the media giant announced third-quarter earnings that beat analysts' estimates.


Jazz Air Income Fund shares fell 6.01 per cent to $5.32 a day after reporting disappointing earnings.


BlackBerry-maker Research In Motion saw its share price fall by 2.29 per cent after an analyst cut his rating on the stock, saying Apple's iPhone and Google's Android mobile operating system may push it out of the market.


Uranium producer Cameco Corp. jumped 3.2 per cent after analysts raised their share-price rating on the stock following the company's announcement Monday that it was increasing its production forecast for 2010. Its price closed at $37.13.

 

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Thanks for sharing nice info.

TSX has its first decline in 4 trading days

Declines in its financials and materials sectors helped push the Toronto Stock Exchange to its first loss in four trading days on Tuesday.


The S&P/TSX started the day on a high note, but by the close had lost 135.85 points, or 1.04 per cent, to end at 12,916.63. Nine of the 10 sub-indexes declined, led by financials and materials, which dropped 1.12 and 2.12 per cent, respectively.


In the commodities markets, oil lost 34 cents to close at $86.72 U.S. a barrel, while gold pared earlier gains of more than $15 to close at $1,410.10 U.S. an ounce, an increase of just $6.90.


The junior Venture exchange lost 36.81 points, or 1.80 per cent, to close at 2,005.03.


The Canadian dollar, which earlier in the day had broken through parity, declined to close at 99.27 cents U.S., a loss of 36 basis points as the U.S. greenback gained ground Tuesday afternoon.


The S&P/TSX had gained three per cent between last Wednesday, when the U.S. Federal Reserve announced an additional $600 billion in quantitative easing measures, and Monday's close.


"The market's had a heck of a run," Irwin Michael, a money manager at ABC Group of Funds in Toronto, told Bloomberg. "Now we have to see the meat and potatoes. It can't only be the Fed. We'd like to see continuation of good corporate earnings. We'd like to see the economy pick up. We'd like to see a little better hiring like we saw last week, such that it's not a one-month wonder."


In the U.S., the Dow Jones industrial average closed at 11,346.75, with a loss of 60.09 points, or 0.53 per cent. The Nasdaq composite index had its first loss in six days, falling 17.07 points or 0.66 per cent, to 2,562.98.


Bank stocks dropped on the Toronto exchange after CIBC analyst Robert Sedran said the industry is in a "sluggish operating environment" and that the "near-term upside" is limited.


Toronto Dominion's stocks dropped 1.27 per cent to $73.65, Royal Bank of Canada fell 1.54 per cent to $54.40 and Bank of Montreal declined 2.26 per cent to $59.37.


Gold miners' stocks fell as the U.S. dollar gained on Tuesday: Eldorado Gold lost 5.56 per cent to $18.00 and Goldcorp Inc. shares fell 2.59 per cent to $46.63.


Quebecor Inc. shares gained 4.89 per cent to $37.29 after the media giant announced third-quarter earnings that beat analysts' estimates.


Jazz Air Income Fund shares fell 6.01 per cent to $5.32 a day after reporting disappointing earnings.


BlackBerry-maker Research In Motion saw its share price fall by 2.29 per cent after an analyst cut his rating on the stock, saying Apple's iPhone and Google's Android mobile operating system may push it out of the market.


Uranium producer Cameco Corp. jumped 3.2 per cent after analysts raised their share-price rating on the stock following the company's announcement Monday that it was increasing its production forecast for 2010. Its price closed at $37.13.

 

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New red poppy coin introduced in Canada

For the third time since 2004, the Royal Canadian Mint has issued a circulation quarter emblazoned with a red poppy in honour of Remembrance Day.


Similar to the coins released in 2004 and 2008, the new quarter bears the symbol of remembrance in place of the caribou and was developed in association with the Royal Canadian Legion.


"As Canada pauses to reflect on the meaning of remembrance, the mint is proud that the 11 million coloured 2010 25-cent poppy circulation coins now in circulation solemnly honour Canada's fallen, surviving veterans and active troops," said Ian E. Bennett, President and CEO of the mint.


The 2010 version of the coin has two red poppies positioned on either side of a Canadian soldier with his head bowed, and placed on a maple leaf backdrop. Only the poppies are coloured.


The first poppy quarter in 2004 was the first coloured circulation coin in the world.


The coin is one of several tributes to Canada's veterans and troops to be produced by the mint in 2010.


Last month the mint also released a limited-edition silver dollar featuring an enamelled red poppy, commemorating the passing of the last Canadian veteran of the First World War. This coin was limited to a worldwide mintage of 5,000.


John "Jack" Babcock died Feb. 18, 2010, after serving with the 146th Battalion of the Canadian Expeditionary Force at the age of 15 in 1917.


In the last year, the mint has also issued several commemorative coins honouring the centennial of Canada's navy.

See Photo
http://www.canada.com/news/national/poppy+coin+introduced+Canada/3806046/story.html

 

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Feds were told Canadians' support for immigration has its limits

OTTAWA — Canadians' enthusiasm for accepting more immigrants has marked limits, according to research commissioned by the Harper government before it announced last week that it was holding the line on immigration next year.


The research warned Canadians are less inclined to feel that immigration strengthens Canadian culture than they were earlier in the decade and that fully 36 per cent of those surveyed said they believe immigration increases unemployment among Canadians.


The findings — based on a wide-ranging survey — said Canadians hold generally positive but "somewhat conflicted" views on immigration and diversity in Canada.


Immigration Minister Jason Kenney reflected the cautionary tone of the research as he explained last week why the government decided to keep the 2011 target for accepting permanent residents the same as last year's — between 240,000 and 265,0000.


"I think Canadians are generally supportive of immigration," Kenney told reporters last week. "I don't, however, think they want to see huge increases beyond where we already are."


Kenney attributed the government's stand-pat position to the "fragile" nature of the economic recovery. He was at pains to stress, however, immigrants would be a critical addition in the coming years as Canada's homegrown labour pool shrinks.


Ekos Research and Associates was hired by the government to conduct its annual tracking survey on Canadian attitudes toward immigration. The firm's findings, delivered to the government in April and recently made public, were based on telephone interviews with 1,530 adults, including 300 new Canadians.


The firm's report says the findings reveal Canadians tend to view the impact of immigration on the economy in a more favourable light than they view the impact of immigration on Canadian culture. It says many Canadians express "fairly high levels" of cultural insecurity when asked about immigration and diversity, especially religious diversity.


"Therefore, the benefits of immigration should be more closely connected to economic rather than cultural impacts," the firm advised.


"Further, when communicating the economic impacts of immigration, the focus should be on the economy overall, rather than on unemployment specifically (which is more negatively perceived by Canadians)."


The firm also said that while 71 per cent of respondents said they felt immigration was good for Canada, the number declined to 48 per cent when asked if they thought it was good for their neighbourhood.


The firm said that if the government wants to increase support for immigration among opponents, the groups to target would be older Canadians and those with lower income and education levels.


Among the findings:


- More than half of Canadians (54 per cent) said they think the number of immigrants coming to Canada is about right, up from 49 per cent in 2004;


- Almost one in four (23 per cent) said there are too many immigrants, down from 31 per cent in 2004;


- A majority (57 per cent) said they feel accepting immigrants from many different cultures makes Canadian culture stronger, down from 61 per cent in 2004;


- Four in 10 said they feel religious diversity means we have less in common as Canadians.

 

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GM IPO 6 times oversubscribed: reports

Investor interest in buying into General Motors' initial public offering appears to be high, with six times more shares in demand than are available, reports suggest.

General Motors, majority owned by the governments of the United States, Canada and Ontario after they bailed out the Detroit automaker last year, is putting the finishing touches on raising at least $10 billion US in an initial public offering of stock in the coming weeks.

The trust that controls the United Auto Workers health plan also owns 20 per cent.

The company will also issue 60 million preferred shares at $50 US per share.

Sources familiar with the offering have confirmed to multiple news agencies that the banks underwriting the IPO have taken orders for as much as $60 billion US worth of shares.

The offering is proving so popular that the company will likely exercise its "greenshoe option" to release more shares for sale. (The option is named after the Green Shoe Company, the first to issue such an option in an IPO.)

The company's initial plan is to sell 365 million shares in a range of between $26 and $29 US each. The greenshoe option would release more than 50 million additional shares. An IPO price above that previously announced range is also possible.

Reuters reported that institutional investors are expected to buy most of the stock, with between $2 and $3 billion US allocated for retail investors.

Strong demand for the IPO is encouraging for taxpayers as it increases the odds that governments will be able to use subsequent stock sales to recoup the more than $60 billion they plowed into the company to stave off its failure.

The sale will see the combined stakes of Ottawa and Ontario shrink from 11.7 per cent to a little more than nine per cent. The shares to be sold by Ottawa and Ontario are worth between $800 million and $900 million, depending on the IPO's final value. The governments also hold preferred shares valued at about $400 million.

At the IPO's offering prices, the federal and Ontario governments would be on pace to lose half their investment in GM, for a possible $4.5-billion hit.

After the sale, the U.S. Treasury will still own more than 40 per cent of the automaker and the employee health care trust will own about 15 per cent.

 

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14% power rate cut promised in P.E.I.

P.E.I. residents will see their electricity rates cut 14 per cent by "legislative means," the provincial government pledged Friday in a throne speech opening the fall legislature session.

The speech promises to bring in an Electrical Rate Reduction Act, part of a new P.E.I. Energy Accord that will cut power costs for consumers starting in March of next year. The reduction is part of a two-year plan that will also hold rates steady in 2012 across all rate categories.

"For generations, Island governments have grappled with the challenges of our nearly total dependency on external and costly sources of electricity," Lt.-Gov. Barbara Hagerman read to the legislature.

"My government has approached this challenge by developing structural changes which attack the roots of this problem."

The rate reduction would be achieved in collaboration with Maritime Electric, which provides almost all of the electricity to the Island outside of Summerside, which has its own utility.

The rate reduction will mean consumers will pay $25 million less for electricity, the government's speech says. It gives no details how those rate reductions might be paid for.

The accord has three primary goals: electricity rate reduction, rate stability and the development of P.E.I. into a world leader in wind power.

Palliative care centre announced
The speech also announced a new palliative care centre that will provide "a caring and homelike setting for the last days of life." The centre will operate in addition to a palliative drug program that assists Islanders who choose to die at home, which was launched in 2008. No date or location is given for the centre.

Two other new health care centres are promised as well, one in Cornwall and one in Murray River. The Murray River centre will be part of a larger community complex, which will include an early years centre as well as office and retail space.

The speech outlined what the Liberal government of Premier Robert Ghiz sees as its main accomplishments in the health care field since it came to power in 2007. Among those are increasing the number of family physicians working in the province from 85 to 96, and a 46 per cent increase in spending on government drug programs, including the addition of 117 medicines to the formulary for seniors and low-income people on the provincial drug plan.

French Language Services Act
The government also said it intends to increase services for the Island's Acadian community in its own language.

The French Language Services Act would be overhauled to provide more government services in French, "balancing community needs and government's capacity to deliver."

New immigrants also earn a mention. While the province has been successful in attracting immigrants in recent years, there have been questions about its ability to keep them. A 2009 report found a 25 per cent retention rate, with the majority of immigrants moving to other parts of Canada. The throne speech said a new settlement strategy will be unveiled during the fall session of the legislature.

Island Prosperity Strategy
The speech did not outline any new economic initiatives, instead focusing on what the government sees as the success of the Island Prosperity Strategy.

The government credits the strategy with protecting the Island economy from the worst ravages of the recent recession. More than 500 jobs have been created in sectors targeted by the strategy — aerospace, bioscience and information technology — with more than 4,000 Islanders now employed in those sectors, the speech said.

The speech also discussed improved wages.

"In 2007, one-quarter of Islander earned more than 20 dollars an hour," it said, "and by the end of 2009, this share had increased to one-third."

It also noted one in six Islanders were earning less than $9 an hour in 2007, and now no Islanders do, because the minimum wage was set at that rate on Oct. 1. Those changes translate to a 14 per cent increase in earned income from 2007 to 2009, the speech said.

Addressing the needs of Islanders still struggling financially, the government promised to end the clawback of the National Child Benefit from families on social assistance as of next April 1.

 

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Canadians spend more than they can afford during holidays: Survey

About one-third of Canadians say they buy gifts they know they can't afford during the holiday season, and about one-quarter finance such purchases with credit cards or by cashing in investments, according to a TD Canada Trust survey released Monday.


Some of the common pitfalls people fall into, the study found, include buying for one's self during the shopping process and getting gifts that the giver knows ahead of time aren't wanted by the receiver.


The survey found that 23 per cent use credit cards to finance their holiday purchases, while four per cent cash in investments. The survey didn't differentiate between those who pay down holiday-related credit card bills quickly and those who leave balances for an extended period.


Dan Demers, associate vice-president of TD Canada Trust, said using credit cards for holiday-related purchases isn't necessarily a bad thing.


"It's all about: do I have the money to pay for those purchases if I put them on my credit card versus just taking the money directly out of my bank account through debit?" he said in an interview. "You don't have to be a Scrooge. It doesn't have to be painful. Put some money aside regularly during the year so that if you do decide to put it on your credit card . . . you do pay it off when you receive the bill in January."


Some of the tips offered by TD include saving money ahead of time for Christmas shopping, determining an overall budget and making a list of people to buy for with dollar limits for each.


Demers added that other ways to cut down on holiday spending is for family members to draw names from a hat for gift buying, rather getting something for everyone, or agreeing to make charitable donations in lieu of gifts.


About one in 10 survey respondents admitted to buying presents they knew the people getting them wouldn't want. TD suggested gifts such as subscriptions, memberships or experiences might be the best bets for those "impossible-to-buy-for" people.


Almost half the respondents said they buy gifts for themselves while shopping for others. The bank said this not only strains your holiday budget, but makes you harder to shop for.


When survey takers were asked what they find most stressful about holiday shopping, three different answers emerged with similar regularity: 35 per cent cited concerns about whether they could afford the gifts they wanted to buy; 34 per cent worried whether the recipients would like their gifts; and 31 per cent said the biggest stress was buying for people who are difficult to shop for.


The results came from an online survey of 1,004 Canadians conducted between Oct. 15 and 20 by Environics Research. No margin of error was given.


Benjamin Tal, senior economist with CIBC World Markets, said there are consequences for Canada's economy from a lack of fiscal discipline by consumers during the Christmas season.


"I think that if you look at increasing debt, especially credit-card debt, you can see a huge increase during the holiday season," he said. "Not an insignificant portion of the accumulative debt during the year takes place in November, December."


Canada's average debt-to-annual-income ratio, which is approaching 150 per cent, has increasingly become a cited concern of economists and government.


Tal said rising debt levels make the country vulnerable to economic downturns and higher interest rates.


While an unexpected turn toward frugality during the holiday season would have negative consequences for the economy in the short term — with retailers losing out on some of their most sought-after sales — Tal said it would put the country on more solid footing for the long term.


"What we are doing now is simply borrowing (economic) activity from the future," Tal said.


TD's Demers added: "If we all (spent just what we could afford), we're actually going to be in a great position as an economy, as a labour force and as different industries in Canada."

 

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Canadians increasingly turning to food banks

OTTAWA — Food banks are stretched more than ever as they scramble to assist record numbers of people now relying on them to help feed their families, says a new report.


Dubbed HungerCount 2010, the report says more than one in three food banks — 35 per cent — reported running out of food this year, the highest percentage since the annual survey of food banks began in 1997.


The study by Food Banks Canada also says almost one in 10 of the record 867,948 people who walked through the doors of a food bank in March of this year was a first-time user.


"This is more people than reside in the province of Prince Edward Island," Katherine Schmidt, executive director of the organization, told a news conference Tuesday. "Too many Canadians have faced hunger for far too long."


The report said food bank usage during the month of March was up 9.2 per cent over the previous March, and 28 per cent higher than reported in 2008 when Canada was in the midst of a full-blown recession. The jump in usage in Canada's northern territories was a whopping 59 per cent from last year. The largest provincial increases were reported in Manitoba, up 21 per cent from last year, and Saskatchewan, up 20.1 per cent.


Schmidt said the findings of the coast-to-coast survey of 1,649 participating food banks are a reality check. It shows the recession is not over for a large number of Canadians, many of whom are jobless or not earning enough to make ends meet.


She said depleted food banks try to meet the increased demand for food by, among other things, giving each person who comes through the door a little bit less and, in some cases, shortening hours of operation.


Almost one in five of those accessing food banks said they have income from current or recent employment, the report said.


In addition, more than half of those who turn to food banks to fill the gaps are families with children, 15 per cent reported receiving disability supports, and 51 per cent reported being on social assistance.


The 2010 figure marks the highest level of food bank use since 1997 when Food Banks Canada began taking its annual snapshot of users in March.


New Democrat Tony Martin, the party's poverty critic, predicted the sharp increase in demand will get worse in the coming months as the federal government ends its stimulus spending and moves into spending cut mode.


"Many lose jobs, exhaust EI, and fall back on inadequate social assistance," said Martin, who represents the northern Ontario riding of Sault Ste. Marie. "The food banks are a mirror for a long-standing problem just made worse by the recession."


To end the need for food banks, Canada Food Banks advocates such things as national strategy to prevent and reduce poverty, increased investments in affordable housing and a hike in the Guaranteed Income Supplement that goes to Canada's poorest seniors.


Following is a glimpse at food bank use in each province:


- British Columbia — usage up five per cent from 2008, with seniors comprising 6.2 per cent of those helped, and children almost 30 per cent


- Alberta — usage up almost 10 per cent, with seniors comprising 4.6 per cent of users and children 43.1 per cent


- Saskatchewan — usage up 20 per cent, with seniors comprising 4.1 per cent of users and children 44 per cent


- Manitoba — usage up 20 per cent, with seniors comprising 4.1 per cent and children 50.5 per cent


- Ontario — usage up 7.4 per cent, with senior comprising 11.8 per cent and children 37.1 per cent


- Quebec — usage up 37.9 per cent, with seniors comprising 3.8 per cent of users and children 37.9 per cent


- New Brunswick — usage up 3.5 per cent, with seniors comprising 4.5 per cent of users and children 34.3 per cent


- Nova Scotia — usage up 11 per cent, with seniors comprising 7.6 per cent of users and children 33 per cent


- Prince Edward Island — usage up 13.4 per cent, with seniors comprising 7.3 per cent of users and children 35.5 per cent


- Newfoundland and Labrador — usage of 2.6 per cent, with seniors comprising 5.2 per cent of users and children 37.3 per cent

 

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Canadians want jobs they don't relocate for: survey

Companies would have better luck hiring the people they really want if they were less picky about where they worked, according to poll results released Wednesday.


The survey, done by Ipsos-Reid and commissioned by Microsoft Canada, showed that three-quarters of those asked believe employers limit their hiring options by not offering the choice of working off-site — possibly in a different city.


The poll found about 90 per cent of respondents would rather not relocate for a job, while 87 per cent said they were "hungry" for technology that allows work to be done from any location.


Other findings included 84 per cent saying that location can be a barrier to securing one's ideal job, and 88 per cent agreed that technology should help people avoid the need to relocate for employment.


"Canadian workers have historically been bound by the location of their employer," Kevin Stolarick, research director for the Martin Prosperity Institute, said in a statement issued by Microsoft. "Today though, workers have become upwardly mobile and dispersed across a massive geographical area as the scope of business expands across borders."


Stolarick's organization is a think-tank associated with the University of Toronto's Rotman School of management, which looks into the role geography plays in economic prosperity.


Barbara Jaworski, CEO of the Toronto-based Workplace Institute, an independent consulting group, said she agrees that location should play less of a role in determining whether someone is able to accept a job.


"I totally agree with this survey," she said. "I think more and more people are definitely wanting to have the option of working from wherever they are."


Jaworksi said more flexibility from employers on this matter would be good for employees, who wouldn't have to disrupt their lives and that of their families to take employment in other locations.


She also said it would be positive for employers who would have more candidates to choose from for job openings, and they could potentially see less disruption in their operations from things such as illness when employees are set up to work from home.


Jaworski said private-sector employers have, in recent years, become more open to remote-location employment arrangements, but there is still much resistance in government, where security of information is often cited as a concern.


The online survey of 1,046 Canadians was taken between Oct. 25 and Nov. 1. The results were weighted to reflect the demographic makeup of the country so the results accurately represent the opinions of Canadians.

 

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Irish debt concerns weigh on markets

Ireland’s debt troubles continued to weigh on global markets on Monday despite an announcement from Ireland’s finance minister that the country would accept a bailout from the EU and the International Monetary Fund.

“In the understatement of the day, Moody’s suggested that Ireland’s credit rating may have to be cut a few notches if it takes on assistance,” said analyst Colin Cieszynski of CMC Markets in an afternoon note.

“The one real lingering question that comes out of this is how many more countries in Europe or elsewhere may still need to see their debt downgraded by several notches before this is all over and sovereign risks become properly assessed and priced into markets.”

Gold has resumed its role as a safe haven, Cieszynski noted. The price of gold rose $5.50 US to $1,357.80 US an ounce on Monday while other commodity prices were mixed on worries that further monetary tightening in China could slow resource demand. Oil fell 24 cents to $81.74 US a barrel.

On the Toronto Stock Exchange, the benchmark S&P/TSX composite index fell 27.32 points, or 0.21 per cent, to 12,929.01. Six of the 10 sub-indexes dropped, with the materials sector among the gainers and energy and financials among the decliners.

Most Canadian bank stocks fell on Monday, including Royal Bank of Canada, which lost 0.89 per cent to $54.83, and Bank of Nova Scotia, which dropped 0.82 per cent to $54.20 after announcing that it would buy money manager DundeeWealth Inc. DundeeWealth’s shares gained 6.57 per cent on the day, to close at $20.75.

Manulife Financial fell 3.06 per cent, or 47 cents, to close at $14.88 on Monday after a Citigroup analyst cut his rating on Manulife stock to “sell” from “hold,” saying management was “in denial” about the problems the company faces. The stock has lost 23.02 per cent this year.

“Because they disappointed investors so much, they had so many quarters where they announced disturbing news that was so much worse than expectations, it’s going to be a long road to rebuild investor confidence,” Murray Leith, a money manager at Odlum Brown Ltd. in Vancouver, told Bloomberg.

Energy stocks losing ground on Monday included Suncor Energy Inc., which was down 0.99 per cent to $34.89, Canadian Natural Resources, which dropped 1.28 per cent to $39.97, and Encana Corp., down 1.06 per cent to $28.95.

The Canadian dollar closed the day with a slight gain, up five basis points to 98.28 cents US.

The junior Venture exchange rose 18.18 points, or 0.91 per cent to 2,014.05.

The Dow Jones industrial average fell for the first time in three days on Monday, losing 24.97 points to 11,178.58, a loss of 0.22 per cent. The Nasdaq composite, on the other hand, was ahead for the fourth consecutive session, advancing 13.9 points, or 0.55 per cent, to 2,532.02.

“There’s still fear of dominoes falling one by one,” Madelynn Matlock of Huntington Asset Advisors in Cincinnati told Bloomberg. “Everybody knew that Ireland would take a bailout. However, you still have the underlying issues with the whole European debt situation. Even if you have a better economy, you still have costs associated with getting rid of these hangovers.”

 

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Emirates Airlines says Canadian job loss claims are bogus

Emirates Airlines has responded to claims by the federal government that "tens of thousands" of Canadian jobs would be lost if the United Arab Emirates flagship carrier was granted more landing rights.


Responding to questions about strained negotiations between Canada and the airline, Government House leader John Baird argued in the House of Commons last week that more access for Emirates would cost "literally tens of thousands of jobs."


Tim Clark, the airline's president, said in a statement that "Emirates has difficulty in understanding the assertion" and he wished to "set the record straight."


Tension between Canada and the Gulf sheikdom has been rising since the negotiations over landing rights broke down in the fall.


The U.A.E. responded to the escalating dispute by denying the Canadian Forces access to an important military airbase in the country.


Canada moved to Camp Mirage near Dubai after the 9/11 terrorist attacks on the U.S., and it quickly became the main logistical hub for Canada's war in Afghanistan. Over the years, about 72 million tonnes of cargo has passed through aboard C-130s and C-17 transports.


The riff has also led the U.A.E. to impose visa requirements on visiting Canadians.


Clark said that the presence of Emirates in Canada "will only deliver favourable benefits to the Canadian economy and in particular to the travelling public."


"Emirates does not seek to swamp Canada with large amounts of capacity; in fact, a fair approach to frequency growth was the proposal recently tabled," he said.


Clark also argued against claims that the carrier was subsidized by the U.A.E. government, saying that "it never has been and never will be."


In the House of Commons last Thursday, opposition critics accused the government of dropping the ball and leaving troops without a reliable airbase to use while in transit to Afghanistan.


Deputy Liberal leader Ralph Goodale noted that just the previous day, a journalist had overhead Defence Minister Peter MacKay complain to two other Tories that the U.A.E. decision was a bad idea and that it would set back relations by a decade. During the encounter outside the Centre Block on Parliament Hill, MacKay had been wearing a red baseball cap with the words "Fly Emirates" on it.


Goodale said MacKay is publicly venting his frustrations about how his own government bungled the decision and lost the ability to use the base, known as Camp Mirage.


"That mismanagement with respect to the United Arab Emirates has badly damaged Canadian relations with what should be a valued ally in the struggle against terrorism," said Goodale.


The government has repeatedly argued that the deal presented by Emirates was not in the best interests of Canada.

 

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Canadian airport, port workers soon may have to take it all off

OTTAWA — Canada's border guards could soon get new powers to strip search employees in airport and ports across Canada in a bid to crack down on the smuggling of illegal drugs, such as marijuana, ecstasy and cocaine.


CBSA officers also would be allowed to frisk employees and to use various types of scanners and detectors to examine goods in their possession.


The proposed new regulations, which do not have to be passed by Parliament, would apply to everyone whose work requires them to be in proposed new customs-controlled areas, regardless of whether they are baggage handlers or ambulance attendants responding to an emergency.


All that would be needed to frisk employees or trigger a strip search would be for a CBSA officer to have reasonable grounds to believe a worker in a customs-controlled area is smuggling something illegal.


While the proposed regulations can require CBSA officers to require someone to open their mouth during a strip search, they also would have to conduct the strip search in a private area.


Currently, border officers have limited powers to search employees as they leave a customs area. Under the proposed changes, they will have the power to search employees within a customs-controlled area and those areas will cover more of an airport or port than the current customs areas.


The regulations are part of the government's efforts to stem the tide of illegal drugs being smuggled into Canada by organized crime. It's a multimillion-dollar trade the government says is flourishing with the help of airport and dock workers who are either planted in jobs or recruited after they start.


"Some individuals with unrestricted access to secure areas of airports and marine terminals, such as mechanics, baggage handlers and longshoremen . . . are suspected to be involved in internal conspiracies," the government says in the notice of the proposed regulation.


The government points to a 2008 study by the RCMP that concluded 58 organized crime groups were using Canada's major airports for illegal activities.


For example, in 2007, eight people were arrested and charged with drug offences relating to the trafficking of 39 kilograms of ecstasy tablets, three kilograms of cocaine and eight pounds of marijuana. About $106,000 in cash also was seized.


"This group had members of their criminal network operating within the airport who were able to use their positions to move drugs and money to and from Canada," the government wrote.


In a bid to attack the problem, the government amended the Customs Act in 2009 to set up new customs-controlled areas (CCA) in locations where travellers and domestic workers could come into contact with people or goods that have not yet been cleared by the CBSA.


The controlled areas, which are not yet in place, will be phased in over three years starting with Canada's three largest airports: Lester B. Pearson International Airport in Toronto, Pierre Elliott Trudeau International Airport in Montreal and Vancouver International Airport.


In the second year, customs-controlled areas will be set up at six other airports and three marine ports. In the third year, the customs-controlled areas will spread to other highway, rail and postal ports of entry and in some duty-free shops and sufferance warehouses across the country.


However, setting up controlled areas won't work unless CBSA officers have the right to frisk or strip search workers, the government argues.


"Without the proposed regulations, the CBSA would be unable to effectively implement the CCA regime and reduce the risks associated with internal conspiracies, and airports and marine ports would continue to be exploited by organized crime groups that succeed at corrupting existing airports and marine port workers or positioning criminal associates within their workforce."


While the new powers come with a cost to both business and the CBSA, the government argues they are outweighed by the benefits of reducing the supply of illegal drugs which it estimates cost Canada $8.2 billion per year in illness, lost productivity and death.


The proposal will cost CBSA about $214,900 annually to train officers and to enforce the regulations and an average $11,800 for the business community due to questioning of employees during work hours.


As for the employees, the impact "consists of the potential loss of privacy and inconvenience that may result from the CBSA questioning and conducting searches of employees suspected of being involved in illegal activities in a CCA."

 

[saki]

Ontario expected to ease electricity costs further

Starting in May, you won't have to wait until 9 p.m. to do your laundry. That's when off-peak electricity rates in Ontario will start two hours earlier, government sources have told The Canadian Press.

Utilities currently charge the lowest rates between 9 p.m. and 7 a.m.

Ontario Energy Minister Brad Duguid is expected to make the announcement Tuesday, the second step the provincial government has taken in the past few days to offset soaring electricity prices.

The government announced last week that consumers will get 10 per cent rebates on every hydro bill to offset the fact power rates will jump 46 per cent over five years.

Discount rates will still apply to weekends and holidays.

Utilities have installed smart meters in about 4.1 million Ontario homes so far — the goal is 4.5 million — that measure the exact time electricity is being used in addition to how much is being consumed.

 

[saki]

Global economic worries rattle markets

Canada's benchmark stock index joined global markets in posting a negative close as tensions bubbled up between North and South Korea, worries increased that Chinese banks would begin to restrict lending and concerns were expressed that the debt crisis in Ireland would expand.


It all added up to what U.S. fund manager Don Wordell called a "fear day."


"Think of global market sentiment as a four-legged stool with the U.S., Asia-Pacific region, Europe and everyone else each representing a leg," wrote analyst Colin Cieszynski of CMC Markets in an afternoon note.


"When one leg falters, the stool can get wobbly. When three legs are shot out at once, it can be hard for the stool to remain standing. After anticipation of monetary easing and economic stimulus out of the U.S. drove markets higher in recent months, signs of political problems and monetary tightening across the globe continue to raise concerns that the global recovery could be derailed."


Cieszynski cites China's recent demands that banks increase reserves; political and military tensions between the Koreas; political problems developing in Ireland; and continuing discussions about whether the U.S. Federal Reserve made the right decision about more quantitative easing.


"It may come as no surprise then to see a number of investors taking profits and uninterested in building new positions ahead of the U.S. long weekend, which essentially starts around 12:00 noon ET (Wednesday)," Cieszynski wrote.


The S&P/TSX closed Tuesday at 12,973.75, a loss of 135.26 points, or 1.05 per cent, with nine of its 10 sub-indexes declining. Utilities was the only gainer, and its advance was largely due to Emera Inc., the Nova Scotian company that agreed last week to invest $6.2 billion, along with Newfoundland and Labrador's Nalcor Energy, in a Churchill River hydroelectric project. Emera gained 2.36 per cent to $32.11 on Tuesday.


The Canadian dollar slipped 54 basis points to 97.74 cents U.S..


Investors seeking a safe haven amid global economic uncertainty sent the price of gold $19.80 an ounce higher on Tuesday, to a $1,377.60 U.S. an ounce close.


The price of crude oil closed at $81.25 on the New York Mercantile Exchange, the loss of 49 cents its ninth decline in the last 12 sessions.


The Dow Jones industrial average fell 142.21 points, or 1.27 per cent to 11,036.37, while the Nasdaq composite declined 37.07 points, or 1.46 per cent to 2,494.95.


Canada's junior Venture exchange lost 12.53 points, or 0.62 per cent, to close at 2,001.52.


Despite the increase in the price of gold, not all gold producers managed to benefit — Goldcorp Inc. lost 0.13 per cent to close at $46.76 on Tuesday. Barrick Gold Corp. rose 1.70 per cent to close at $51.95.


Copper producer Teck Resources also lost ground. Its shares were down 4.11 per cent to $48.82.


Tourmaline Oil Corp., founded by Calgary oilman Mike Rose in 2008, closed its initial public offering and private placement on Tuesday, raising $228 million to help fund an aggressive exploration and development program. Its shares were priced at $21 and closed at $20.65.


Energy producers Suncor, which lost 2.69 per cent to close at $33.95, and Encana, down 1.55 per cent to $28.50, saw their shares fall along with falling oil and natural gas prices.


TMX Group, which owns the Toronto Stock Exchange, was one of the few bright lights on the index on Tuesday. Its shares gained 2.08 per cent to $34.80.

 

[saki]

Canada's inflation rate at highest level in 2 years

OTTAWA — Canadian inflation came alive last month. Consumer prices were up 2.4 per cent in October from a year earlier, Statistics Canada said Tuesday.


That marks the highest annual inflation rate since October 2008. It surpassed economists' expectations for 2.2 per cent inflation, which followed September's price gains of 1.9 per cent.


It was the first time since November 2008 that year-to-year price gains have met or exceeded the Bank of Canada's target rate of two per cent.


Seasonally adjusted, month-to-month inflation of 0.7 per cent in October was the most since January 2006, Statistics Canada said.


Even core inflation, which the central bank monitors for underlying trends, was well ahead of expectations last month. This annual rate, which strips out volatile items such as energy and certain foods, was 1.8 per cent. Economists expected 1.5 per cent, unchanged from September.


"After a steady stream of mild inflation readings, it's a bit of a jolt to get a true high-side surprise, especially in a month that saw the Canadian dollar near par," said Douglas Porter, deputy chief economist for BMO Capital Markets.


Energy costs were a major factor. Overall, consumers were paying 9.1 per cent more for energy than a year earlier. Gasoline prices were 8.8 per cent higher. Electricity costs were 8.1 per cent more, and natural gas prices were ahead 10.6 per cent.


On a month-to-month basis, gasoline prices surged 3.3 per cent. Statistics Canada said the annual inflation rate in October would have been three-tenths of a percentage point lower with gasoline factored out.


Porter said the jump in inflation last month does not automatically mean the Bank of Canada will change course in keeping its key interest rate at a low one per cent. He noted that newly implemented harmonized sales taxes in Ontario and British Columbia continue to boost the figures.


"However, if we see anything close to a repeat performance on core inflation in the next few months, there will be some serious misgivings at the bank about keeping rates at one per cent for much longer," he added.


Craig Alexander, chief economist with TD Economics, called October's inflation strength "a bit of a head scratcher."


"The acceleration of inflation is at odds with the underlying economic environment and the strength in the Canadian dollar this year," he said. "The pace of economic growth has slowed below trend and considerable slack remains in the economy. For example, the unemployment remains elevated at 7.9 per cent, and the odds are that job creation in the near term will be lacklustre."


Alexander predicted inflation would moderate in the coming months.


Seven of the eight major product categories had year-to-year price gains in October. Clothing and footwear was the one exception, where prices slipped 0.1 per cent. Transportation was the category seeing the biggest price hike of 4.6 per cent. Smaller price gains were seen in food, shelter, general household costs, health and personal care, recreation and education, and alcohol and tobacco.



Annual inflation rates in October by major product categories


Food 2.2%


Shelter 2.8%


Household operations, furnishings and equipment 1.3%


Clothing and footwear -0.1%


Transportation 4.6%


Health and personal care 2.7%


Recreation, education and reading 0.7%


Alcoholic beverages and tobacco products 2.4%




Annual inflation rates in October by province


Newfoundland and Labrador 3.0%


Prince Edward Island 2.3%


Nova Scotia 2.9%


New Brunswick 1.8%


Quebec 1.4%


Ontario 3.4%


Manitoba 1.2%


Saskatchewan 2.1%


Alberta 1.2%


British Columbia 2.4%




Overall 2.4%