These are stories Report on Business is following Tuesday, June 7. Get the top business stories through the day on BlackBerry or iPhone by bookmarking our mobile-friendly webpage.
Follow Michael Babad and Globe top business news on Twitter
In from the cold It's not how Ian Fleming might have ended the saga of Anna Chapman, but the celebrated Russian spy is now in the venture capital industry, trying to help Prime Minister Vladimir Putin keep comrades at home as entrepreneurs.
Ms. Chapman, part of a sleeper cell kicked out of the United States last year, has been an adviser with Moscow's Fondservisbank, an investor in the tech sector, for several months. She also edits Venture Business News, Bloomberg News reports today.
Ms. Chapman, celebrated as a modern day "Bond girl," told Bloomberg she hopes she can play a role in the success of Skolkovo, a Moscow suburb that has been pegged as a tech sector, Russia's answer to Silicon Valley.
"I've always been fascinated with technology," said the 29-year-old, whose real name is Anna Vasil'yevna Kushchyenko. "And right now, I want to make my own input into developing this industry, the venture capital industry."
Bernanke sees second half pickup U.S. growth has been slower than expected so far this year, but is expected to pick up in the second half of the year, Federal Reserve chief Ben Bernanke says.
"U.S. economic growth so far this year looks to have been somewhat slower than expected," Mr. Bernanke said in a speech at a conference in Atlanta today.
"Aggregate output increased at only 1.8 per cent at an annual rate in the first quarter, and supply chain disruptions associated with the earthquake and tsunami in Japan are hampering economic activity this quarter. A number of indicators also suggest some loss of momentum in the labour market in recent weeks."
But, he added, the impact from the devastation in Japan should fade. And along with "some moderation" in gas prices, growth should speed up later this year.
"Overall, the economic recovery appears to be continuing at a moderate pace, albeit at a rate that is both uneven across sectors and frustratingly slow from the perspective of millions of unemployed and underemployed workers," the central bank chief said.
"As is often the case, the ability and willingness of households to spend will be an important determinant of the pace at which the economy expands in coming quarters. A range of positive and negative forces is currently influencing both household finances and attitudes."
Mr. Bernanke's speech, said chief economist Avery Shenfeld of CIBC World Markets, has a mix of good and bad news but "comes down firmly on the side of maintaining very stimulative monetary policy for a long time to come."
"Fed tightening wont come until the recovery is better established, which requires a 'sustained period of stronger job creation.' The Fed is prepared to respond if the uplift in inflation proves to be persistent, but that is clearly not the Fed's forecast (or ours). Look for near zero overnight rates to persist through 2012 as the U.S. remains a long way from full employment or a legitimate inflation threat."
Mr. Bernanke also laid on an aggressive defence of Fed policies, pointing to arguments in some quarters that the central bank's move have driven up commodity prices and "created risks of economic overheating" in emerging economists.
"For example, some have argued that accommodative U.S. monetary policy has driven down the foreign exchange value of the dollar, thereby boosting the dollar price of commodities," he said.
"Indeed, since February 2009, the trade-weighted dollar has fallen by about 15 per cent. However, since February 2009, oil prices have risen 160 per cent and non-fuel commodity prices are up by about 80 per cent, implying that the dollar's decline can explain, at most, only a small part of the rise in oil and other commodity prices; indeed, commodity prices have risen dramatically when measured in terms of any of the world's major currencies, not just the dollar."
He also rejected the hit to developing nations.
"In fact, most of the recent rapid economic growth in emerging market economies appears to reflect a bounceback from the previous recession and continuing increases in productive capacity, as their technologies and capital stocks catch up with those in advanced economies, rather than being primarily the result of monetary conditions in those countries."
Europe looks at second bailout The first bailout for Greece isn't even done yet, but European leaders are already looking at a second package to aid the debt-burdened nation.
According to Reuters today, officials are looking at a possible three-year deal worth up to €100-billion. That would replace the existing aid.
One wonders how much money Greece will continue borrowing, and when it all comes home to roost.
Having said that, markets are taking some solace today in suggestions from the chief of the European Central Bank that he's comfortable with Greek creditors effectively rolling over their debt via new bonds.
Such a move, said Jean-Claude Trichet, would not constitute a default.
The ECB, one of three groups involved in Grece's aid package, has opposed a debt restructuring, though creditors buying fresh Greek debt is "something the ECB would consider apprpriate," he said yesterday in Montreal.
"The rollovers the [EU finance ministers]are talking about will be entirely voluntary," said Carl Weinberg, chief economist at High Frequency Economics.
"People who hold bonds that are going to mature soon - like the lucky folks who own the €6.6-billion in 3.9-per-cent bonds due to mature on Aug. 20 - are going to be asked to accept newly issued bonds instead of cash ... voluntarily," he said in a research report.
"Well, doesn't that just put people on the spot ... So we are betting that the 'voluntary participation in the bond rollover proposed by the EU politicos will not see a huge take-up in the market."
Canada a retail hot spot Canada may be a hotspot for retail expansion, but lease costs in the country's fanciest downtown shopping districts are still a relative bargain compared to other global centres, Globe and Mail real estate writer Steve Ladurantaye reports.
Toronto's Bloor Street area was the priciest in Canada at $291.66 (U.S.) a square foot, according to Colliers International. Toronto is the only Canadian city to make the Top 50 in the report, coming in as the world's 37th most expensive retail leasing market sandwiched between Perth, Australia and Athens.
Pipeline roadblocks The U.S. Environmental Protection Agency is looking to throw up new roadblocks for the proposed TransCanada Corp. $7-billion (U.S.) Keystone XL pipeline, arguing the project would pose serious environmental risks.
In a letter to the State Department, the EPA outlined a lengthy list of concerns about the pipeline project, and argued State's draft environmental impact statement was seriously flawed and required far more work, The Globe and Mail's global energy writer, Shawn McCarthy, reports.
Vancouver headed for correction? Vancouver's housing market looks primed for a correction, according to a report from BMO Nesbitt Burns, with the average house now costing "an astounding" 11.2 times a family's average income -- more than double the national average.
But senior economist Sal Guatieri said there's hope that any drop in prices could be less severe than previous corrections -- "if interest rates stay low and wealthy immigrants continue to pour into the city, prices could stabilize sooner than in past downturns," The Globe and Mail's Steve Ladurantaye writes.
Canadian workers head abroad International corporate relocations froze during the recession, but that trend is now thawing, The Globe and Mail's Tavia Grant writes.
Canadian firms are assigning employees around the globe in growing numbers, according to a Canadian Employee Relocation Council poll to be published today. Top five destinations are the U.S., the EU, China, Australia and South America.
Bombardier scores another order Bombardier Inc. says it has scored another order for its new C Series aircraft.
An airline, which Bombardier says has requested anonymity, has placed a firm order for three planes, with options on three more, meaning a value of between $186-million (U.S.) and $385-million.
"As we have been saying for some time now, the C Series family of aircraft is an unmatched value proposition in its segment," Charles Fuller, senior vice-president of sales, marketing and asset management at Bombardier Commercial Aircraft, said in a statement.
"The orders announced last week and today confirm that the C Series aircraft's widebody-style comfort, exceptional performance capabilities, low cash operating costs and environmental credentials make it an ideal air transport solution worldwide."
Last week, Bombardier ended a C Series sales drought with a 10-unit order to Sweden's Braathens Aviation.
"We believe that the order announced today is a positive development although it is not financially material," said analyst Benoit Poirier of Desjardins.
"It increases the positive momentum around the C Series, and we believe that Bombardier is confident it will announce further orders at the Paris Air Show to be held on June 20-22 (the company says it does not time its orders with airshows)," he said in a research note.
"We believe the stars are aligned for Qatar Airways to announce a C Series order at the air show, although we do not expect an order from a Chinese customer. However, we believe an order from a Chinese customer could be placed at Aviation Expo, which will be held in Beijing on Sept. 21-24 and where the C919 (168-190 seats) will be on display."
TimberWest finds no better deal TimberWest Forest Corp. says it hasn't found anyone who could top the proposed $1-billion takeover by British Columbia Investment Management Corp. and the Public Sector Pension Investment Board.
"TimberWest ... announced today that its 60-day 'go-shop solicitation process has not yielded a superior proposal, indicating that the proposed acquisition of the company by two leading Canadian pension funds will deliver maximum value to unitholders," the Vancouver-based company said in a statement.
TimberWest said its adviser, BMO Nesbitt Burns, contacted 31 parties, five of which went over the books. The deadline passed with no better offer, it said, and it doesn't expect one to emerge.
TD boosts Cenovus TD Securities has boosted its outlook for shares of Cenovus Energy Inc. after it unveiled its 10-year production and spending timeline yesterday.
Analyst Menno Hulshof hiked his 12-month price target to $41 from $40, though kept his recommendation at "hold" after Cenovus said it planned to boost its oil sands output six-fold over the next decade, as The Globe and Mail's Carrie Tait reports today.
The new production targets add about 50,000 barrels a day to oil sands production.
Cenovus now sees total oil production of about 500,000 barrels a day by the end of 2021, and oil sands output of more than 400,000 in the same time frame, Capital spending is expected to average $3-billion to $3.5-billion a year over the next 10 years.
"These new disclosures are a clear positive, although the sheer volume of capital moving into [steam-assisted gravity drainage]development is becoming a concern," TD said.
Sunshine reportedly eyes IPO Alberta's Sunshin Oilsands Ltd. is reportedly looking at an initial public offering that would raise $1-billion (U.S.) in Hong Kong this year.
Sunshin, backed by Chinese and other investors, have chosen BOC International Holdings, Deutsche Bank and Morgan Stanley to handle the IPO, Bloomberg News said.
In Economy Lab today
Yesterday's budget was an implicit admission of a problem whose existence the Conservatives had spent quite some time denying: Ottawa is running a structural deficit that won't go away on its own when the economy fully recovers from the recession. Stephen Gordon examines the issue.
In International Business today
As Greece's interior minister puts it, "anyone who drives the nation toward elections now will be effectively be pushing it over the cliff." Anthee Carassava reports from Athens.
In Personal Finance today
- E-services are a good substitution for the mailman
- Plane, train or automotible? Which way makes the most financial sense
- Why a later Tax Freedom Day is a good thing
From today's Report on Business