These are stories Report on Business is following Wednesday, March 26, 2014.
Exporters eye Canada
U.S. oil is going to flow into Canada at a much faster pace over the next few years, heightening the competition, one of the country’s leading commodities analysts predicts.
That, says Bank of Nova Scotia’s Patricia Mohr, means even more pressure for the Canadian industry to expand its exports markets to the Asia-Pacific region. Not just China, Ms. Mohr says, but also Japan, South Korea, Singapore and, notably, the west coast of India.
“U.S. producers are increasingly viewing eastern Canada as a potential oil export market,” Ms. Mohr said in a report today, adding later in an interview that the industry is using a “quite innovative” combination of rail and barge to ship crude.
At this point, the amounts are small, but that’s set to increase, she said, noting the surge in light oil from the Bakken region of the United States.
Canada is in a unique position because it is effectively exempt from the U.S. ban on crude exports – refined products are not included – put in place in the early 1980s after the Mideast oil embargo.
So last year, for example, there was an increase of U.S. crude exports to eastern Canada.
Even with the improvements in the pipeline system, and, for that matter, even if President Barack Obama approves TransCanada Corp.’s Keystone XL pipeline project, Canadian markets need to be expanded.
- Jeffrey Jones in Streetwise (for subscribers): U.S. shale oil could withstand big price correction: analyst
Group warns on Russian growth
The World Bank is warning Russia that it risks damaging its economy amid the Ukraine crisis.
In a fresh look at the Russian economy today, the organization presented two scenarios, one based on a “limited and short-lived impact of the Crimean crisis,” and the other on a “more severe shock.”
The first scenario would see economic growth slow this year to 1.1 per cent, picking up marginally in 2015 to 1.3 per cent.
The latter scenario suggests Russia’s economy would contract by 1.8 per cent this year.
Over all, according to the report, Russia is “navigating” a downturn. Economic expansion is believed to have slowed to 1.3 per cent last year, from 2012’s 3.4 per cent.
“To emerge from the downturn with improved long-term prospects Russia will need a combination of cyclical and structural policy measures,” the World Bank said.
“As the relative weight of the reasons for Russia’s downturn is tilted toward structural factors, structural measures will need to lead the rebound. The lack of more comprehensive structural reforms in the past has led to a gradual erosion of investor confidence.”
- World Bank warns Russian economy may contract in wake of Ukraine crisis
- What BRICS really stands for (Hint: Basket case, Ruffian, Inflation Central ...)
- Geoffrey York: Putin’s BRICS allies reject sanctions, condemn West’s ‘hostile language’
- Eric Reguly: Fresh worries on China growth as factories slow to 8-month low
- Brian Milner: China moves the economic goalposts
- Kim Mackrael in Politics Insider (for subscribers): Russia gets kicked out of a club whose prestige was waning anyway
- OECD forecasts emerging economies will hold back global recovery
- Europe and Russia have ‘a gun to each other’s head’ with oil as a weapon
- Read the report
BlackBerry threatens 'strong action'
BlackBerry Ltd.’s feisty new chief executive officer is warning insiders and outsider alike that he’ll take legal action against anyone who leaks information.
“There are a lot of people whose enthusiasm for our company and our products makes them want to know what we will do next – and that can be a tremendous asset for us as a brand,” John Chen said today.
“But, when curiosity turns to criminality, we must take strong action,” he said on the smartphone maker’s blog.
Mr. Chen said the company is now pursuing a case against an unnamed “party who stole confidential information” on a product and publicized it.
“This person falsely posed as an employee of one of our carrier partners to obtain access to secured networks,” he said.
Mr. Chen promised that BlackBerry will take action to head off leaks, which in some cases means “prosecuting individuals – internally or externally.”
Of course, he noted, that may mean fewer reports with pictures and rumours of what’s coming next. The online world is always peppered with reports and speculation on coming smartphones and other electronic gadgets.
“I know those can be fun for our fans, but rest assured that we’re committed to communicating our biggest updates to you early and often – when they are ready to be shared.”
- BlackBerry gets U.S. government clearance for e-mail software
- Shane Dingman: Can BlackBerry make its new BBM profit plan stick?
St. Joseph and real estate
What do sales of statues of St. Joseph tell us about the housing market?
I read a fascinating piece in The Wall Street Journal last week, and decided to try to put it to the Canadian test.
First, the Journal report looked at how sales of statues of St. Joseph, a carpenter renowned for his patience, tracked the U.S. housing market.
Many people bury such statues in their yards in hopes it will help them sell their homes, a phenomenon in both the U.S. and Canada.
The Journal asked a Catholic supply company to provide a deeper, five-year look at sales, which the news organization then compared to house prices, finding that, in general, sales of the statues climb when the residential real estate market turn down.
I couldn’t get similar numbers for Canada, where the market is, of course, much different than that in the United States, but Broughton’s Church Supplies, Religious Books and Gifts told me that specially made home kits are big sellers, particularly among real estate agents.
“I know when real estate is hot, these fly off the shelves,” said Brian Broughton Jr., a sales representative at the Toronto outlet, and the son of the owner.
Broughton’s is the Canadian source for a St. Joseph Home Kit that sells for $10.95. It includes a resin statue of St. Joseph, a prayer card and a pamphlet on selling your house.
Other religious supply shops in Canada also sell such kits. One outlet in Vancouver, for example, lists a similar kit for $26.
According to Mr. Broughton, real estate agents buy them in bulk. Individual home sellers purchase them, as well, notably when they’re having trouble selling their homes. But Mr. Broughton didn’t necessarily see a patern.
“When the market crashes, people tend to go back to faith,” he said.
Broughton’s keeps between 200 and 250 kits in stock, and, in its last fiscal year, sold about 1,500.
Catholic Supply of St. Louis sells several kits, the best seller at $6.95 (U.S.), a plastic statue at $1.25 and a deluxe package for $11.95, among others.
“The statue is buried upside down in the front yard with the feet pointing to heaven,” its website says.
“It may face towards the home (or towards the street if you want your neighbour’s home to sell!”). The location of the statue can vary: by the ‘For Sale’ sign, in a flower pot (popular for condo owners), etc.”
(I find the bit about the neighbours interesting, though I’m sure it’s not meant for getting rid of the ones you don’t like.)
- Tara Perkins: Home prices to cool with warm weather
- Do you earn more than your house does?
- Vancouver, Calgary home prices set records in 'east-west' Canadian divide
- Brent Jang: Vancouver real estate prices break records
- Video: The truth about Canada's housing market
- Tara Perkins: Why the doomsayers are wrong about Canada's housing market
Streetwise (for subscribers)
ROB Insight (for subscribers)
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- Lufthansa cancels 600 flights as strike hits German airports