***** Canada Business News *****

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House prices and sales to decline, market survey says

OTTAWA — House prices continued to climb higher across Canada in the second quarter of 2010, but sales and prices are expected to fall in the coming months, according to a Royal LePage House Price Survey and Market Forecast released Wednesday.


In the second quarter of 2010, the average price of a detached bungalow in Canada was up nine per cent to $331,868 compared to a year ago. Two-storey homes rose 8.7 per cent to $367,835 and condominiums rose 7.3 per cent to $230,014. Average prices in Vancouver were up 16.6 to 19.1 per cent for the month while prices in Toronto rose by an average of 7.7 to 11.4 per cent.


The survey said by the end of 2010, home price appreciation will average 6.8 per cent year-over-year nationally, while home sales will increase by just over one per cent compared to 2009.


An increase in interest rates in the spring, tightening of mortgage lending rules for first-time homebuyers and investors, and the lead up to the introduction of the HST in British Columbia and Ontario led to a peak in sales activity in the first half of the year.


As a result, "we will see both prices and unit sales decline towards the end of the year," Phil Soper, president and chief executive of Royal LePage Real Estate Services said in a release. "Moving into the next six months . . . home prices will remain flat or decline slightly in most cities, but will be more likely to hold their value or increase in energy-producing economies such as Alberta."


However, he pointed out, "This should not be interpreted as a severe correction but rather a natural reaction to the market having peaked quite early this year."


Tuesday, data from metropolitan real estate boards in Calgary, Toronto and Vancouver showed house prices were up in June compared to a year ago, but existing home sales for the month plunged. Calgary existing home sales fell 42 per cent year-over-year, Toronto sales declined 23 per cent and Vancouver sales fell 30.2 per cent

Source: http://www.canada.com/business/House+prices+sales+decline+market+survey+says/3245390/story.html

 

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Immigration policies must improve to meet economic needs: Report

OTTAWA — Immigration policies need to be modernized to avoid a stifling of economic growth in the future caused by labour shortages, according to a new report from the Conference Board of Canada.


The Ottawa-based think-tank suggests, among other things, placing more importance on the skills of prospective immigrants and whether they match the labour-force needs of Canada.


The report, written by the Conference Board's chief economist Glen Hodgson, said the recent recession provided some relief from tight labour markets.


However, he predicted the supply of workers will soon become an issue for the country's economic development with steady job growth once again the norm, and the large baby-boomer generation either at or approaching retirement age.


Hodgson wrote: "A country's long-term potential for economic growth, or at least sustainable economic growth, is essentially driven by three factors: growth in the labour force (and total hours worked), investment in physical capital and increased productivity."


He said that while Canada has generally outperformed other industrialized countries in labour-force growth in recent decades, it has lagged in capital investments and improving productivity.


Hodgson reasoned that, without improved immigration policies, Canada will hit a wall in terms of growing the workforce, given that the current birthrate of 1.66 children per woman is far from the level of 2.1 that's considered enough to sustain a population.


The Conference Board report recommends: more weight be given to immigration applicants' skills in relation to Canada's needs: that immigration processes and policies be streamlined between different levels of governments; an expansion in the use of temporary foreign workers to fill short-term needs; involving employers more in the immigration decision-making process; making it easier for temporary foreign workers and foreign students to become permanent residents; and improved recognition of foreign professional credentials.


While promoting more consideration of economic elements in immigration, Hodgson doesn't recommend doing away with other factors such as family unification, humanitarian reasons and protecting refugees.


"An easy way to achieve the economic objective would be to maintain the number of annual immigrants meeting social objectives or criteria and steadily increase the number selected by economic factors," he said.


The Conference Board's report assumes the rate of immigration will grow to about 350,000 per year by 2030 from the government's current target of as much as 265,000.


Despite urging more co-ordinated immigration programs between different levels of government, the Conference Board is not recommending the federal government have a monopoly on this area of public policy.


"Since provincial governments tend to be closer to the ground in terms of their interface with business, their engagement is essential," the report said.


Source: http://www.canada.com/business/Immigration+policies+must+improve+meet+economic+needs+Report/3246789/story.html

 

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Unemployment rate falls to 7.9%

OTTAWA — Canada added a whopping 93,000 jobs last month, blazing past the 15,000-20,000 economists had been predicted, Statistics Canada reported Friday.


Canada's unemployment rate dropped 0.2 percentage points to 7.9 per cent, the first time since January 2009 it's been below eight per cent, the agency said.


"Employment has been on an upward trend since July 2009, increasing by 403,000 (+2.4 per cent)," Statistics Canada said. "These gains offset nearly all the employment losses observed during the labour market downturn which began in the fall of 2008. The June unemployment rate, however, remained well above the October 2008 rate of 6.2 per cent, due to a large increase in the number of people in the labour force over this period."


The jobs added in June were equally split between full- and part-time, the agency said, adding that since July 2009 most of the employment gains have been in full-time work, up 355,000 or 2.6 per cent, and part-time work has increased 1.5 per cent.


The job increases were not shared out equally across the country — Ontario, with 60,000 new jobs, and Quebec, with 30,000, accounted for almost all of June's gains, though six of the other provinces also added jobs. Newfoundland and Labrador actually lost jobs last month, as did New Brunswick.


Five sectors were the principal winners in the job lottery, with the gains split fairly evenly between retail and wholesale (22,000), business, building and other support services (20,000), health care and social assistance (20,000), automotive repair and personal care services (17,000), and construction (11,000).


Manufacturing, on the other hand, lost 14,000 jobs in June and employment in that industry remains about 11.9 per cent below its October 2008 level.


"There's no arguing with this strong report. The jobs picture clearly shows that the Canadian recovery hasn't stalled yet, despite signs of slowing momentum in the U.S. and other economies. The handoff from public to private spending looks to be going smoothly, this strong report solidifies our call for the Bank of Canada to raise rates 25 basis points on on July 20," said BMO Capital Markets economist Benjamin Reitzes in a note.


"Also encouraging was private-sector job growth of 51,900. Over the past four months, the private sector has created 246,200 (+2.3 per cent) new positions, which bodes well for the health of the Canadian economy."


Statistics Canada also notes that most of the jobs last month (41,000) went to men aged 25 to 54. Workers aged 55 and over took 31,000 of the new jobs, and 21,000 went to those aged 15 to 24.


Canwest News Service




Employment % change May-June June 09-10


Employees 0.5 2.7


Self-employed 1.0 -0.2


Public sector 0.5 2.5


Private sector 0.5 2.7




All industries 0.5 2.2


- Goods-producing sector -0.3 1.1


Agriculture -1.7 -8.0


Natural resources 0.2 4.6


Utilities -1.6 -0.1


Construction 0.9 6.4


Manufacturing -0.8 -1.3


- Services-producing sector 0.8 2.5


Trade 0.8 3.8


Transportation and warehousing -0.6 -2.9


Finance, insurance, real estate and leasing 0.1 2.9


Professional, scientific and technical services 1.0 7.7


Business, building and other support services 2.9 3.5


Educational services -0.3 2.3


Health care and social assistance 1.0 5.4


Information, culture and recreation 1.0 -3.2


Accommodation and food services 1.0 1.1


Other services 2.2 -4.1


Public administration 0.2 2.6


Source: http://www.canada.com/business/Unemployment+rate+falls/3255336/story.html

 

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Housing starts decrease in June

OTTAWA — Housing starts fell for the second month in a row in June to 189,300 units, down 3.1 per cent from May, Canada Mortgage and Housing Corp. reported Friday.


Analysts had been expecting a gain of about 0.5 per cent.


May's starts, initially reported at 189,100 units, were revised to a seasonally adjusted 195,300.


"Housing starts decreased during June, largely due to the multiple starts segment in Ontario. The single starts segment was largely unchanged Canada-wide," said Bob Dugan, chief economist at CMHC's market analysis centre. "After a robust start to 2010, we expect the pace of housing start activity to moderate and total 182,000 units by year-end."


April's starts were also revised upward, resulting in a month-over-month gain of 3.7 per cent in April to 205,900 units, but the revision for May meant a 5.1 per cent decline in that month.


The seasonally adjusted number of urban multiple starts was down 5.8 per cent to 89,200. While single urban starts edged slightly higher, up 1.4 per cent to 77,800 units, the overall figure for urban starts fell 2.6 per cent.


Rural starts were estimated at 22,300 units in June, down from 22,900 in May.


"The result was about in-line with our expectations, and supports our view that Canadian housing activity has likely peaked for the time being — starts are now down slightly from January's level," said Robert Kavcic, an economist with BMO Capital Markets. "Starts tend to lag sales activity by about six months, and June results from Canada's big cities point to existing home sales about 20 per cent below year-ago levels. In addition, demand on the new home side of the market is likely to soften materially in the second half of the year as the HST has now taken effect in Ontario and British Columbia."


Atlantic Canada, the only region to see an increase in housing starts in May, joined the rest of the country in posting declines in June. Starts in the Atlantic provinces declined by 19.8 per cent last month. Housing starts were down by 11.6 per cent in Quebec, 17.4 per cent in Ontario, 8.6 per cent in the Prairies and 6.3 per cent in British Columbia.


"Home-building in the first half of 2010 was certainly propelled by robust home-buying and corresponding price gains," said Grant Bishop, an economist with TD Economics. "However, resale markets have experienced a definite moderation with sales of existing homes having declined since their peak in December 2009 and price growth slowing. Our expectation is for a modest price correction during late 2010 and early 2011, and such price declines with dampen the incentive for homebuilding."

Source: http://www.canada.com/news/national/Housing+starts+decrease+June/3255585/story.html

 

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2010 Winter Games cost B.C. almost $1B: Provincial report

VANCOUVER — The cost to British Columbia taxpayers of putting on the 2010 Vancouver Winter Games is nearly $1 billion, according to a financial report published Friday by the provincial government.


In a final accounting, the government said it spent $925 million. Of that, $160 million went for marketing, hosting and internal government operations in addition to the $765 million it contributed to the direct construction and operation of the Olympic Games.


However, the money was well worth it and helped drive Canada's lagging economy, B.C. Finance Minister Colin Hansen told reporters Friday.


"Certainly, the early indications are that we are on track to realize the significant economic benefits that we expected going into this," he said, noting early economic analysis show the Games helped soften the blow from the 2008 worldwide economic downturn.


"They are giving a lot of credit to the 2010 Games for really launching the economic recovery in British Columbia. We often said the Games themselves, were not to be a landing pad but a launching pad for the next decade of growth in B.C. and we have accomplished exactly that."


But Kathy Corrigan, the New Democrat critic for the Olympics, said the report leaves out many other costs, including the dollars spent by Crown corporations on sponsorships and the staff time and lost productivity from the more than 650 provincial and Crown corporation employees who were either seconded or "volunteered" for the Games.


"We will never get the real answer as to how much this cost taxpayers," she said.


The report, prepared by the B.C. Olympic and Paralympic Winter Games Secretariat, includes additional accounting of costs borne by several Crown corporations. The Insurance Corporation of British Columbia, BC Hydro and the British Columbia Lottery Corp., all became corporate sponsors of the Vancouver Organizing Committee. Most, however, said their Olympic participation costs were covered by their customers or ratepayers, such as the net proceeds of $10.1 million ICBC gave to Vanoc from a vanity licence plate program and an unspecified amount of royalties the lottery corporation paid from its Olympic-signature Sportsfunder ticket sales.


But Corrigan dismissed that argument. "We are all ratepayers in this province. We are all customers of these Crown corporations. The fact is, at the end of the day, British Columbians will have to cover these costs."


Originally, the province estimated it would cost $600 million in direct funding to the Vancouver Organizing Committee. But Hansen said the government always knew it would have to spend money indirectly on the Olympics if it wanted to fully leverage the event. That's where the $160 million in marketing and programming came in, he said.


Of that, the government said it cost $47.6 million to run the secretariat, which oversaw all provincial involvement in the Games. It also spent $68 million on marketing, including $38 million through Tourism BC and the tourism ministry.


Interestingly, it spent $4.5 million on two massive sets of Olympic Rings at Vancouver International Airport and on a barge in Vancouver Harbour. But by comparison, it spent only $2.6 million on a media centre at Robson Square from which international journalists broadcast stories around the world.


In addition, the province was thrown a $165 million curveball when security costs for the Olympics and Paralympics rose to $900 million from a bid estimate of $175 million. The province carved a deal with the federal government to contribute the additional $165 million in return for Ottawa taking on a greater share of responsibility for non-Olympic infrastructure projects elsewhere in the province.


The report also doesn't include the roughly $765 million cost of rebuilding the Sea to Sky Highway, the $2 billion cost of the mass transit line between Vancouver, Richmond and the Vancouver International Airport or the $863 million new Vancouver Convention Centre, which housed Vanoc's international broadcast centre.


But Hansen said while none of those mega-projects was directly connected to the Olympics, they are now so successful he doesn't care if people link them to the Games.


"If anyone wants to blame that on the Olympics, let them," he said.


The report doesn't account for costs incurred by the federal and municipal governments. But it does give an indication for the first time, how deep Vanoc's financial troubles arose during the worldwide economic crisis in 2008. Although Vanoc was supposed to fund most of its $1.7 billion operating budget from private sources, such as sponsorships and ticket sales, the province was forced to give it operational contingency funding of nearly $50 million.


John McLaughlin, Vanoc's chief financial officer, said Vanoc could have put on the Games without the additional money but the result was much better.


"We could have done the Games without the money," he said.


The report pointed to economic studies that show the Olympics continue to deliver benefits. It notes that in the first quarter of 2010, Statistics Canada reported national tourism increased by 1.3 per cent, spending by international visitors was up by nearly six per cent, and spending on vehicle fuel increased nearly three per cent.


It also said the Games led to more than 250 B.C. firms getting procurement contracts with the Olympics, more than 800 new businesses were created across the country and Canada had received approved destination status from China, which hosted the 2008 Beijing Games.

 

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Improving job numbers good news or bad?


The job numbers released Friday by Statistics Canada reveal a trend toward a healthy, broad-based recovery or — depending on who's interpreting them — possibly a harbinger of a Canadian economy full of low-paying service jobs.


With the 93,000 jobs created in June, Canada has recovered most of the jobs lost since the recession started in the fall of 2008. The unemployment rate fell 0.2 percentage points to 7.9 per cent — the first time it's fallen below 8.0 per cent since January 2009. Moreover, the economy created just as many full-time jobs as part-time ones.


"It's pretty good news all over," said James Milway, economist at the Rotman School of Management at the University of Toronto. "I think we're in a full-fledged recovery. People are coming back to work, looking for work and finding work."


Erin Weir, economist for the United Steelworkers union, which represents 250,000 workers in Canada, begs to differ.


"When you ground down the numbers, the picture is not as rosy," he said.


The manufacturing sector lost 14,000 jobs in June, bringing the total lost since the recession to about 244,000. Oddly, even as more people found work, the total number of hours worked among all workers dropped — meaning that, on average, less work was divided among more people.


The jobs that were created in June were mostly in the service industry, the majority in retail and wholesale trade, — jobs which are, on average, lower-paying than those in manufacturing, according to Jeannine Usalcas, an economist with Statistics Canada.


Moreover, the decrease in unemployment was concentrated in Ontario, Quebec and Manitoba; everywhere else the rate increased.


"Certainly if we just replace manufacturing jobs on average wages are going to be lower," said Weir. "More people are going to make do with part-time work; It's a huge problem."


Weir said the Bank of Canada should bring the dollar to a "more reasonable" level and keep interests low, which will help manufacturers and exporters.


He says that the country's political leadership has turned away from the manufacturing sector. "They think it's a smoke stack industry of the past."


Good riddance, if it means the country is losing low-skilled, high-paying manufacturing jobs that can't compete in a global economy, said Milway.


"If you're relying on a cheap Canadian dollar . . . that train has left the station," he said.


The jobs in the future Canadian economy will be found in two separate — and vastly different — categories in the service industry, said Milway.


The first category includes high-skilled, high-paid, creative, management and analytical jobs. The second covers the low-paid service jobs. The June labour force survey shows strong growth in both areas. The better-paid service job — like those in science and research, management, health and teaching — all grew in June.


The challenge going forward is for the private sector to figure out how to make the second type of service job more appealing, "meaning finding a way for the cashier at Tim Hortons or the department store clerk to use their brains more and contribute more to the business and therefore can earn more," said Milway.


In the past, someone who only had a high school degree or less could get a decent-paying manufacturing job. Not anymore.


"Don't jump into the labour market if all you have is a high school diploma, and for God's sake don't drop out of high school," said Milway. "And I think that's good. I think we want an economy that wants high skills."


The more pressing issue, Milway said, is not covered by the Statistics Canada survey but affects millions of Canadians: the strength of the American economy. The U.S. economy is sluggish and unemployment is at 9.5 per cent.


Milway said it's hard to foresee a future where Canada is doing great and the U.S. foundering.


"If the U.S. doesn't get its act together there is less reason for optimism."

Source: http://www.canada.com/business/Improving+numbers+good+news/3255336/story.html

 

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Nothing to stop hot market for fake IDs in Canada

Mai, an underaged university freshman, always got away with breaking the law.


On weekends, the student, who did not want her last name published, flashed fake IDs to get into Toronto nightclubs, bars and liquor stores.


She was rarely questioned, so using fake IDs or borrowing a friend's became a typical routine until she was 19 years old.


Her stunts became more brazen. Now 21, Mai once used an ID belonging to a tall, blond classmate to get into a bar. Mai is five-foot-four, petite, with long black hair.


"Some bouncers just don't care," she said. "Some of them know it's a fake, but they let you in the bar anyway. It depends on their mood and if you act mature enough."


She is only one of thousands of teenagers who use fake IDs, a problem described by one anti-drunk driving campaigner as "rampant."


"It's so easily available, so it counters any programs run by jurisdictions across the country" to curb underaged drinking, said Andrew Murie, chief executive officer for Mothers Against Drunk Driving.


Officials should be concerned because the trend is now a rite of passage for teens, which leads to dangerous problems, he warned.


"When you come to look 19, having a fake ID is a real priority and you're buying alcohol, gambling or renting cars or driving cars. Bad things happen," he said.


Murie said 13 per cent of the Canadian population is between 16 and 24 years old, and the age group represents 33 per cent of drunk driving fatalities.


Instead of cracking down on the "problem that could go away tomorrow," authorities are too lenient, Murie said.


He said fighting fake ID use has been on MADD's radar for a decade, but said recommendations the organization makes to liquor boards often end up ignored.


Whether the IDs are being purchased online or in a store, these businesses peddling the forged goods are untouchable because they aren't breaking any regulations as long as the IDs are advertised as novelty and souvenir items — a loophole Canadian counterfeiters take advantage of, Canada Border Services Agency conceded in previous reports.


Fake ID shops are dotted along downtown Toronto's Yonge Street, each promising sophisticated Canadian IDs with "ultra-violet, guaranteed, magnetic swipe," and "the best quality ID cards with holograms."


FakeIDpro.com, one of many veteran novelty ID online suppliers, operates out of Nanaimo, B.C.


Montreal police said they often bust bars in the summer because Ontario teenagers flock to Quebec pretending to be 18, that province's legal drinking age.


And although police in Ottawa said the issue of fake IDs is not significant, Liquor Control Board of Ontario records show otherwise.


"Detecting a fake ID is not 100 per cent foolproof, and it never will be," said Chris Layton, spokesman for the LCBO. The provincial Crown corporation pours hours of employee labour into training staff on efficiently studying authentic IDs as the percentage of underaged customers attempting to buy alcohol in Ontario stores steadily increases each year.


More than 155,000 people were refused service across 613 stores in Ontario between April 2009 to March 2010, a four per cent increase from last year, according to LCBO statistics. Of those, more than 80 per cent were refused for "reasons of age", meaning these shoppers couldn't provide valid ID, Layton said.


Alberta's battle with fake IDs heightened once businesses began issuing government IDs when the province privatized official registrations, said Edmonton police Det. Mark Johnson.


In Vancouver, fake ID production and use has existed for decades on Granville Street, the city's entertainment district, said Vancouver police Const. Lindsey Houghton.


Dave Sukic, spokesman for Genesis Security, a B.C.-based company covering nightclubs, concerts and sporting events, said his bouncers see, on average, between four and eight out-of-province IDs that have been "compromised" on a weekend night.


Bar Watch, a monitoring program implemented in cities across Canada, was created to "eliminate gang presence and underaged customers" said Ron Orr of Granville Entertainment Group, which owns pubs and nightclubs in B.C.


Bar Watch members invest $6,000 in ID scanning software to scare underaged customers away.


With these stringent safeguards in place, it is becoming more and more difficult for fake ID use, but teens still find a way in, Sukic said.


"It's really part of the game. The better the security is, the better the criminal needs will be to circumvent these safeguards."

Source: http://www.canada.com/news/Nothing+stop+market+fake+Canada/3263845/story.html

 

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New Ontario 'eco fees' not a tax: minister

A new fee that is being applied to the price of some products that require special disposal is not a tax, says Ontario's environment minister.

Since July 1, stores have been charging an extra fee on products like detergents, aerosol cans and fire extinguishers — items identified as environmental, health or safety risks.

The fees range from a few cents for some products to up to $6.66 for fire extinguishers weighing more than 5.5 pounds.

"Not one penny of this ends up as a tax in the government's pockets," said Environment Minister John Gerretsen.

Instead, those funds go towards ensuring those materials don't end up in the landfill, he said.

Companies that make or distribute the products governed by the program pay the fees to Stewardship Ontario, a government body regulating the program.

But the new fees — dubbed "eco fees" by Stewardship Ontario — took consumers off guard, with many saying they had no inkling they would be paying more for certain products.

Some of the products that the new fees are being applied to
•Fertilizers
•Fire extinguishers
•Hand sanitizers
•Lighters
•Fluorescent bulbs
•Paint
•Pesticides
•Some prescription pills and creams
•Over the counter pharmaceuticals
•Syringes
•Aerosol containers
•Laundry detergents
•Hand soap
When asked by CBC News if the government could have done a better job communicating the fees, Gerretsen said "we're having those discussions with Stewardship Ontario right now."

He said the organization will undertake a larger public education program about the fees.

"Obviously, from the amount of media attention it has received … we're in constant communication that they do a better job and make sure the government does a better job so that the public more clearly understands the notion that the hazardous waste that we have in our homes…is being recycled and managed in a proper fashion," said Gerretsen.

May be advantages to charging consumers: Gerretsen
Gerretsen says the government has allowed manufacturers of the products to pass on the charge to consumers at the retail level if they wish.

"Some retailers are charging the fees that are set for different products at different rates. Some retailers are not. It's entirely up to them."

There may be advantages to allowing companies to pass on the charge to consumers, said Gerretsen.

"It makes people more aware of the fact that are environmental consequences to buying products and what happens to these products at the end of their life cycle," he said.

The fees are part of a larger program called Orange Drop, which aims to make it easier for people to dispose of hazardous materials in a way that ensures they don't end up on the landfill.

The Orange Drop program in turn, builds on the Municipal Hazardous or Special Waste Program, first introduced in July 2008, aimed at increasing diversion of hazardous materials. The program provides drop zones throughout the province where consumers can dispose of the products on the overall list.

In 2008, the government outlined nine categories of products that it said were designated for recycling and disposal. On July 1, 13 more categories of products were added to that list.

Gerretsen said the goal is to divert 55,000 tonnes of products over the next five years.

Stewardship Ontario sent CBC News an email Thursday saying: "If you feel that you have been overcharged on eco fees by a retailer at checkout, please contact Stewardship Ontario at beyondthebox@stewardshipontario.ca, we will look into to matter and get back to you."



Source: http://www.cbc.ca/canada/toronto/story/2010/07/09/ontario-eco-fees656.html#ixzz0tT01QeqR

 

[saki]

Markets lower as commodities fall


Canadian stocks struggled to make gains Monday, ending the day lower for the first day in five sessions as commodities fell.


The S&P/TSX composite index closed down 4.69 points for the day, or 0.04 per cent, to 11,565.76.


On the New York Mercantile Exchange, gold fell $11.10 U.S. to $1,198.70 U.S. an ounce in New York. Copper prices fell 4.45 cents U.S. to $3.009 U.S. a pound after China cut its copper imports in June by more than 17 per cent compared to April. Crude oil was down $1.14 U.S. to $74.95 U.S. a barrel.


The Canadian dollar fell 35 basis points to 96.39 cents U.S. by late in the afternoon.


The junior TSX Venture composite was up 0.58 points, or 0.04 per cent, to 1,370.13.


Basic materials led markets lower, but oil and gas as well as financials were all dragging on the TSX.


Teck Resources, Canada's largest base-metals producer, saw stocks fall 3.29 per cent to $34.43 a share, while shares at Eldorado Gold fell 2.81 per cent to $17.27. Pengrowth Energy Trust lost 6.5 per cent to $9.61 after announcing an acquisition in non-cash deal worth about $366 million.


Meanwhile, Goldcorp rose 0.74 per cent, Barrick Gold was up 0.36 per cent to $45.20 and uranium giant Cameco jumped 4.92 per cent to $24.76.


Markets had little economic news to guide them on both sides of the border throughout Monday. The Bank of Canada released its second-quarter business outlook, which showed business leaders expecting to increase business investment fell to 38 per cent from 43 per cent in the first quarter.


"With little news out there to drive price action, commodities have been trading slightly lower today due to a small rebound in U.S. dollar after recent selling, which so far appears to be more of a normal correction than a change in sentiment," Colin Cieszynski of CMC Markets Canada said in a note.


In the U.S., the Dow Jones industrial average was up 18.24 points, or 0.18 per cent, to 10,216.27. The Nasdaq composite index rose 1.91 points, or 0.09 per cent, to 2,198.36.


Mainly, investors are waiting to see what earnings season would bring this week. Alcoa Inc., the largest U.S. aluminum producer, unofficially kicked off earnings season after the bell Monday, reporting second-quarter profit that beat analysts' forecast. Net income was $136 million, or 13 cents a share, beating estimates of 11 cents a share.


"By the end of the winter, expectations of a strong economic recovery had been running high. The spring correction, however, appears to have been mainly related to a lowering of expectations on fears of slowing in China, a slower than hoped recovery in the U.S. and the risk of a double dip recession in Europe. The question we may see answered in coming sessions is whether the lowered macro expectations have translated into lower expectations for individual companies," Cieszynski said.


Major European markets were higher at the close, while Asian markets were mixed, with the Nikkei stock average in Tokyo closing down and Hong Kong's Hang Seng posting a gain.

 

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Quebec City lottery promotes tourism

Quebec City has created a lottery to raise money and attract tourists.

A Découvrez Québec lottery ticket costs $3, and prizes include vacation packages for various Quebec City attractions.

Each prize is valued around $1,350.

Mayor Régis Labeaume said he thinks the prospect of winning a vacation getaway in the provincial capital will sell tickets.

"You come from Abitibi, would you like to win two or three nights at the Château Frontenac, would you like to win two or three days skiing at Mont-Sainte-Anne?" Labeaume said at the launch on Monday.

"Wherever you come from, you don't care, you just want to have fun," Labeaume said.

The lottery campaign hopes to raise $500,000 to support major events in Quebec City.

The province's gaming agency, Loto-Québec, is a partner in the project.

It will donate $1,000 to the pool for every ticket package someone wins.

The scratch-and-win tickets will be sold at more than 8,000 Loto-Québec outlets across the province.



Read more: http://www.cbc.ca/canada/montreal/story/2010/07/12/qc-city-lottery-ticket.html#ixzz0tYhGZc9i

 

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Gas prices fall in most Canadian markets

OTTAWA — The national average price of gasoline in Canada was unchanged this week from last, though the price of fuel fell in most markets across the country, according to a weekly report.

On Tuesday, data released by energy consultancy MJ Ervin & Associates showed the average price of regular gasoline at $1.024, the same as last week, when prices rose in Ontario which introduced a harmonized sales tax on July 1, in British Columbia which also introduced the HST along with a carbon tax, and Nova Scotia which increased its HST.

Prices fell in 39 of the 60 communities included in the weekly survey, and rose or were unchanged in 21.

On Tuesday, crude oil was selling for just over $77 US a barrel, an increase of nearly $10 from the $67.55 it cost a year ago, when the average price of gas was 95.8 cents a litre, according to MJ Ervin’s records.

At $1.186 a litre, Yellowknife continues to have the highest average price of gas in Canada. The price in that northern city has not budged all year.

The least expensive locale was Lloydminster, Alta., at 87.9 cents, down one cent from the previous week.

The biggest weekly jump was in Montreal, where the average pump price rose 2.1 cents to $1.046 a litre. The biggest drop was in North Bay, Ont., where prices fell 7.8 cents to 98.5 cents a litre.

Looking at the country’s biggest markets: Victoria’s average gas price was unchanged at $1.123 a litre; Calgary was down 1.7 cents to 91.9 cents; Edmonton was down two cents to 88.9 cents; Regina was down 0.1 cent to 99.8 cents; Saskatoon was unchanged at $1.019; Winnipeg was flat at 93.9 cents; Toronto was up 0.1 cent to $1.023 cents; Ottawa gained 0.1 cent to $1.003; Windsor was down two cents to 96.4 cents a litre.

 

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Markets up on solid earnings

Markets ended in positive territory Tuesday, boosted by positive results from some of the first companies to report as earnings season kicked off, sending commodities higher.


The S&P/TSX composite index closed up 107.08 points, or 0.93 per cent, to 11,672.84, led by gains in base materials and energy.


On the New York Mercantile Exchange, gold rose $14.80 U.S. to $1,213.50 U.S. an ounce in New York. Copper prices rose 0.3 per cent U.S. to $3.0175 U.S. a pound. Crude oil was up $2.20 U.S. to $77.15 U.S. a barrel.


"U.S. crude has been a big beneficiary of initial earnings reports, which suggest a continued recovery in the U.S. economy," Colin Cieszynski, of CMC Markets Canada said in a note.


The Canadian dollar closed up 35 basis points to 96.74 cents U.S..


The junior TSX Venture composite gained 13.96 points, or 1.02 per cent, to 1,385.11.


Ivanhoe Mines Ltd. rose as much as 17 per cent Tuesday after it announced that it was dropping a "strategic purchaser covenant" that has restricted the company from selling shares to any strategic investor other than Rio Tinto Ltd. At the end of trading, its shares were up 14.33 per cent to $17.07.


BlackBerry maker Research In Motion was up 3.04 per cent to $57.53 on rumours that a RIM tablet is in the works to compete with Apple, according to BetaNews.


Montreal convenience store company Alimentation Couche-Tard Inc. shares rose 3.22 per cent to $20.50 on much better-than-expected earnings Tuesday.


In the U.S., the Dow Jones industrial average closed up 146.75 points, or 1.43 per cent, to 10,363.02 at the close. The Nasdaq composite index rose 43.67 points, or 1.99 per cent, to 2,242.03.


Alcoa, the largest aluminum producer in the U.S. and transportation company CSX, both topped earnings estimates after the bell Monday, kicking off earnings season on a positive note. Alcoa also upwardly revised its forecast for global aluminum consumption to 12 per cent growth this year, sending commodities higher.


"We're kicking off earnings season with Alcoa out with numbers that beat — there were a lot of folks who felt Alcoa was going to lose money," said Hayes Miller, the Boston-based head of asset allocation in North America at Baring Asset Management, told Bloomberg.


The world's biggest chipmaker, Intel Corp. reported much better-than-expected earnings after the close of markets Tuesday, suggesting the rally will continue

 

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Bankruptcies fall 1.3% in April

OTTAWA — The number of bankruptcies in Canada declined 1.3 per cent in April, and were down 21 per cent from a year earlier, according to the federal bankruptcy agency.


A total of 9,068 bankruptcies were filed during the month, down from 9,187 in March, the Office of the Superintendent of Bankruptcy reported Wednesday.


Filings by consumers — who were hardest hit by the recent recession as companies slashed jobs and cut production — fell 1.7 per cent to 8,633 in April, while business failures were up 7.9 per cent to 435.


For the year, personal bankruptcies were down 21.1 per cent from April 2009 and business filings declined by 17.8 per cent.


"A reduction in insolvencies in the transportation and warehousing, construction, manufacturing, and other services — except public administration — sectors contributed to this decrease," the agency said.

Source: http://www.canada.com/business/Bankruptcies+fall+April/3275943/story.html

 

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Drowning risk greater for immigrants: Study

New Canadians face a significantly higher risk of drowning while enjoying aquatic activities, as a study released Thursday suggests immigrants are four times more likely to be unable to swim than native-born Canadians.


The study, conducted by the Lifesaving Society, found that about one in five newcomers don't know how to swim, compared to one in 20 people born in Canada. The research is being billed as the first in Canada to examine the links between ethnicity and the ability to swim.


The survey was conducted with 433 Canadian-born adults and 599 immigrants from South Asia, China, and Southeast Asia, as well as Muslim immigrants.


Seventy-nine per cent of new Canadians said they anticipated to spend time this summer on or near water, but 19 per cent reported not being able to swim. Seventy-three per cent of people who had been in Canada less than five years said they feared for their children's lives when they were near water.


Drowning is the second leading cause of preventable death in Canada for children under the age of 10.


"The results point to the need for water safety education targeted to reach new immigrants, especially those who have been living in Canada for less than five years," said Barbara Byers, the society's public education director.


Supporting that sentiment were the 92 per cent of immigrants who said learning to swim is a "necessary life skill," while 93 per cent said children should learn to swim in school.


The report's release comes amid a spate of drowning deaths across the country, including 10 in a recent 10-day period in Ontario from the end of June to the beginning of July.


As of Wednesday, there were 187 drownings across Canada in 2010, according to the society. The unofficial number is tracked through media and police reports. Using the same tracking tools, there were 161 deaths by the same day in 2009.


The heat wave that scorched Central Canada earlier this month likely contributed to many of the recent deaths, said Byers.


Byers said that during heat waves, people are often more inclined to go to swimming pools to cool off. In a normal year, about one of every 10 drowning deaths happens in a pool. This year, 28 per cent of deaths have occurred at pools, including five of the 10 in Ontario.


The study was released ahead of National Drowning Prevention Week, which runs from July 19-25. It will feature education programs that focus on the importance of wearing a life-jacket, avoiding alcohol while swimming or driving a boat, and taking swimming lessons — especially when young.

 

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Economy gained in June: StatsCan

The Canadian economy continued to strengthen in June, Statistics Canada said Friday.

The agency's composite index was up one per cent in June from May, with all components rising except for housing and retail sales of durable goods (excluding furniture and appliances) such as cars.

The composite was 242.5 in June, compared with 240.1 in May and 214 in June 2009. The index measured 100 in 1992.

Manufacturing was especially strong, with new orders for durable goods rising 2.3 per cent, the fifth straight gain, driven by strength in sectors such as aerospace and machinery.

But the stock market and household spending were easing. Those two factors led the recovery that started in the middle of 2009.

The June gain is in line with 1.1 per cent increases reported in April and May.



Read more: http://www.cbc.ca/canada/story/2010/07/16/composite-index-june.html#ixzz0tr4dPDpD