Friday, Dec. 06, 2013 12:57PM EST
As British Columbia’s government gloats over the potential tax booty from selling liquefied natural gas to Asian power generators, it should cast a watchful eye over its shoulder to New Delhi, where a group of Asian governments have been chewing over the idea of an LNG buyer’s club, a sort of OPEC-in-reverse that would seek to get better terms from gas exporters in the region.More »
Friday, Dec. 06, 2013 5:00AM EST
You have to feel a bit sorry for Ukrainian President Viktor Yanukovych. His decision to walk away from a comprehensive trade and association pact with the European Union was based on sound political reasoning. The deeply unpopular leader wants to stay in power and preserve his family’s accumulating wealth. And the deal with the EU wasn’t going to do either for him, despite the obvious long-term benefits for the Ukraine’s recession-wracked economy and cash-strapped government.More »
Thursday, Dec. 05, 2013 7:10PM EST
The U.S. economy has been posting some monster numbers, and this week’s data might be the final blow to wipe out any resistance lingering among Federal Open Market Committee members towards starting the tapering of its stimulus program later this month. All of this hinges on tomorrow’s monthly barnburner of a statistic: the U.S. non-farm payrolls report. A robust number will make it hard for the Fed to resist a small taper, if for no better reason than to get it out of the way before Federal Reserve chairman Ben Bernanke exits and traders close their books on 2013.More »
Thursday, Dec. 05, 2013 6:16PM EST
With yet another bidder pulling out of January’s wireless spectrum auction, the Big Three carriers can fairly claim to have won the battle against a federal government intent on bringing new competition to the sector. Aside from the dangerous possibility that Ottawa could allow airtime resellers in, the government has run out of options.More »
Thursday, Dec. 05, 2013 5:47PM EST
There’s a lot at stake for Ontario as it tries to map out the potentially lucrative future for its mining sector. But as the province’s former premier Bob Rae said recently, it’s more important to get it done right than to get it done fast.
Ontario’s current Premier, Kathleen Wynne, was bending Prime Minister Stephen Harper’s ear about this issue Thursday afternoon, urging Ottawa to help the province finance the estimated $2-billion cost to build the infrastructure needed for the rich Ring of Fire mineral deposit in a remote region of northern Ontario that, for starters, is devoid of the roads and/or rail lines that are absolutely essential to realizing its massive potential.More »
Thursday, Dec. 05, 2013 5:06PM EST
Economist and portfolio manager Guillermo Dominguez believes the “very serious old guy complex” of bearish economists are wrong, and the U.S. economy is on the brink of a rapid expansion led by wage growth and rising consumption.
Mr. Dominguez is a hedge fund manager for Florida-based New River Investments. In a recent blog post, he noted three trends suggesting an inflection point in America’s currently anemic job market. One, the labour force is no longer increasing in size. Two, public-sector employment has stabilized after a long period of decline (and shows signs of growth). Three, U.S. wages are growing at a rate seen in previous economic recoveries.More »
Friday, Dec. 06, 2013 5:22PM EST
Thailand’s richest man has chosen a bad time to try and plug the finances of his heavily indebted telecom group. Dhanin Chearavanont’s True Corp. is offering shares in a $1.8-billion (U.S.) infrastructure fund containing some of its key assets. But with international investors worrying about the country’s political divisions as well as higher global interest rates, it won’t be easy to drum up support.More »
Friday, Dec. 06, 2013 1:38PM EST
Every day ROB Insight delivers exclusive analysis on breaking business news and market-moving events. Streetwise offers news and analysis on Bay Street and the world of finance. Insight the Market delivers up-to-the-minute insights on developing market news.
Here are our editors’ picks of some of the best reads available to Globe Unlimited subscribers this week.More »
Thursday, Dec. 05, 2013 5:00AM EST
Eddie Lampert’s hands-on management of Sears Holding Corp. has not inspired much hope of a turnaround at the embattled retail giant, despite capturing so much of the billionaire investor’s time and capital. Now, some of his long-time hedge fund clients appear to have reached the same conclusion and are heading for the exits.More »
Wednesday, Dec. 04, 2013 6:54PM EST
Mario Draghi faces a familiar conundrum at Thursday’s European Central Bank rate meeting. Last month he stunned the world by actually taking decisive action. Rather than jawboning markets and awaiting more data, the ECB cut interest rates. It was a bold move for a conservative institution; the ECB is often heavily influenced by Germany, and not least in terms of the country’s inflation-phobia.More »
Wednesday, Dec. 04, 2013 3:42PM EST
Both Bank of Montreal and Potash Corp. announced layoffs on Wednesday, cutting more than 2,000 jobs from the Canadian work force. By now, it’s clear that wide swaths of employees are at risk from the combined forces of technology and globalization.
The global economy is exhibiting a tectonic shift from scarcity to the economics of abundance. Industry can produce whatever’s needed efficiently – companies are just having trouble making money from it.More »
Wednesday, Dec. 04, 2013 12:46PM EST
In debates over the proposed Keystone XL pipeline, investors often find themselves across the table from environmentalists. But if a study commissioned by a green NGO is right, the two groups may have found an issue they can agree on.
The report, issued Nov. 25 by climate change think tank Carbon Tracker, warns that new oil-sands development is “increasingly economically questionable,” and that the profitability of oil sands projects made possible by Keystone XL construction is much smaller than is widely assumed.More »
Wednesday, Dec. 04, 2013 11:46AM EST
The Bank of Canada isn’t ready to cut interest rates if the country’s alarmingly slumping inflation rate continues to fall, as some monetary experts have recommended. But the central bank’s latest statement on its rate policy suggests that the country’s disinflationary trend is nudging the bank ever closer to such a move.More »
Wednesday, Dec. 04, 2013 11:28AM EST
Textile workers in Bangladesh got a big pay rise over the weekend, a 77-per-cent increase in the minimum wage to $68 (U.S.) a month, and in Washington, President Obama is backing a bill to raise the U.S. federal minimum wage to $10.10 an hour. Congress should get on with the job and help to create a virtuous global circle of rising wages for the very poor.More »
Thursday, Dec. 05, 2013 2:10PM EST
The new estimate of U.S. third-quarter GDP growth is more mirage than reality. At an annualized 3.6 per cent, the number sounds promising, but much of the gain came from building up inventory. That suggests a return to sluggish expansion this quarter. Fuelling sustainable growth requires more jobs and less Washington interference for the wealth effect to spread.More »
Thursday, Dec. 05, 2013 3:22PM EST
German drug and chemicals group Merck KGaAhas made a premium offer for Britain’s AZ Electronic Materials. The deal offers synergies and diversification, and deploys otherwise idle cash. Since pharma valuations are rich, the specialty electronics firm offers Merck relatively cheap growth.
The deal also sees the German company buck the pharma trend. Firms from Novartis to Pfizer are streamlining – spinning off divisions to appease shareholders. Others, such as Abbott, have broken themselves up. Merck is doing the opposite. Its £1.6-billion ($2.8-billion) offer for AZ Electronic Materials, which makes chemicals for displays in smartphones or televisions, expands its non-pharma business. The acquisition is at a whopping 53-per-cent premium to the market price.More »
Thursday, Dec. 05, 2013 2:13PM EST
Peter Thal Larsen
So much for China’s willingness to tolerate financial innovation. Regulators have barred the country’s banks from trading bitcoin, while denying the pseudo-money legal status and cracking down on anonymous users. Though China has stopped short of an outright ban, the move dashes hopes the country might allow start-up currencies to exist alongside the official one.More »
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David Parkinson has been covering business and financial markets since 1990, and has been with The Globe and Mail since 2000.
Sean Silcoff joined The Globe and Mail in January, 2012, following an 18-year-career in journalism and communications. He previously worked as a columnist and Montreal correspondent for the National Post and as a staff writer at Canadian Business Magazine.
Ian McGugan is the Investment Editor of The Globe and Mail and has been writing about investing, economics and business for more than 20 years. He joined the Globe and Mail in 2010.
Dave Morris joined the Globe and Mail in 2010 as Associate Editor of Report on Business Magazine.
Carl Mortished is a Canadian financial journalist and freelance consultant based in the U.K.