A roundup of what The Globe and Mail's market strategist Scott Barlow is reading this morning on the World Wide Web.
Bloomberg reports that Canadian auto dealerships are offering eight year financing in a move that amounts to cannibalization of the industry's future. There is, of course, a short term sugar-high for sales but this is merely pulling potential sales three to five years from now into the present – not driving the sale of additional vehicles. Auto analyst Dennis DesRosiers is quoted in the story, "'On a 96-month loan it takes 80-plus months before you are back in the money,' " he said.
Consumers gain easier payments but pay more in interest over the term of the loan. I'm curious as to how active the major banks are in this trend. The banks have been aggressive in securitizing and selling auto loans in recent years.
"Eight-year car loans fuel Canada sales over debt warnings" – Bloomberg
Prime Minister Harper's annual trip to the Arctic takes on added significance in light of a proposed joint venture between Russian oil giant Rosneft and Norway's Statoil for an Arctic drilling program. The PM is right to emphasize Canadian sovereignty in the Arctic at a time when Russia as a country seems disinclined to recognize national borders.
"Harper North trip to highlight agriculture, Arctic sovereignty" – CBC
"Rosneft to drill in Arctic with Statoil" – Financial Times
The New York Times presented what is by far the most entertaining study of U.S. economic inequality yesterday by using most common Google searches in rich and poor areas. The results are both surprising and enlightening in both economic and social terms:
"'Holiday greetings' are a popular search term in the easiest places, especially California, Connecticut, New Jersey and Washington, D.C. In many of these areas, people no longer live near most of their relatives or childhood friends – and need to send holiday cards with updates on their lives. By contrast, across much of the South, stretching from Oklahoma to Kentucky to Georgia, 'holiday greetings' were a relatively rare search term."
"In one America, guns and diet. In the other, cameras and 'Zoolander.'" – NY Times' Upshot
When the general news flow is as horrifying as it's been lately, I like to find stories of human achievement to compensate. Science Daily reports on a the development of a new clear solar panel that will allow windows to collect energy and power your house. Solar technology is making major strides, unbeknownst to many investors.
"Solar energy that doesn't block the view" – Science Daily
Sure, this headline from Inc. magazine is blatant clickbait, but can you resist it?
"Your office is plotting to kill you" – Inc.
Tweet of the day is from French journalist @pegobry which I will present without comment for obvious reasons, ".@cshirky sounds the depressing last call for print journalists. If that's you, read. https://medium.com/@cshirky/last-call-c682f6471c70"
Diversion: I was ecstatic to hear that essayist Fredrik deBoer is writing for the immensely popular Daily Dish blog this week. In this post, Mr. DeBoer argues that disconnecting from the Internet carries its own psychological baggage and may not even be possible. (Warning, some NSFW language.)
"Digital breaks, or 'Breaks'" – Daily Dish
Follow Scott Barlow on Twitter @SBarlow_ROB
Scott Barlow