Canada Must Step Up ‘global Energy Game,’ Says Ex-minister
Cash-strapped Canada Post weighs future of mail delivery
Bernanke said the Fed would make the taper call based on whats needed for the economy. The Federal Open Market Committee next meets Oct. 30. December Expectations Policy makers will wait until their December meeting to decide to reduce monthly purchases, 24 of 41 economists according to a Bloomberg survey conducted Sept. 18-19. The median estimate in an Aug. 9-13 poll projected the Fed would begin paring at this weeks meeting. The markets a bit surprised by Ben Bernanke backing off the tapering, Madani said. We still think theyll go ahead and do it, but not until December. The prospect of sustained bond-buying by the Fed triggered a rally in U.S. government debt and widened the interest-rate gap between Canadian and U.S. two-year government debt to as much as 92 basis points, or 0.92 percentage point, the most since January. U.S. two-year notes yielded 0.33 percent yesterday compared with Canadian two-year yields of 1.22 percent. The two-year notes dropped six basis points on the week. Canadas 10-year note yields fell seven basis points to 2.69 percent. Moving Average The loonies failure to stay above the 200-day moving average was due to Canadian companies that do business across the border taking the opportunity to buy U.S.
business relations in Ottawa sponsored by the Canadian American Business Council. Canada needs new customers because it is selling its oil at 35 per cent less than the going global rate, he said. “That makes us a price-taker, not a price-maker.” Moreover, Prentice said, when the U.S. administration decided to delay the construction of the Keystone XL pipeline that would have carried Alberta oilsands crude to the U.S., there was nothing Canada could do about it. All of that amounts to a major vulnerability for Canada’s economy, said Prentice, now an executive at CIBC. Keystone pipeline just one issue Prentice played down the importance of the stalled Keystone XL deal which could be approved next year as well as the $15.1-billion bid by China’s state-owned CNOOC to buy Calgary-based Nexen Inc. Canada’s energy future is bigger than one pipeline deal, said Prentice, and while CNOOC-Nexen “is a big deal, it’s important, it’s not the main issue.” Harper was to address the group and participate in a question-and-answer session later in the day. Harper has made selling energy to Asian markets a priority after the rejection of the Keystone XL pipeline. U.S. President Barack Obama delayed the project after massive environmental protests in what was an election year. Harper has said that while he understood the realities of U.S. electoral politics, Canada needed to look elsewhere for energy customers. The prime minister has branded Canada an “energy superpower.” But Prentice appeared to upbraid his old boss when he told the gathering, “mere ownership does not make you an energy superpower.” Earlier at the event, Gary Doer, Canada’s ambassador to the United States, affirmed the world’s largest two-way trading relationship, saying Canada will never forget its best customer even as it tries to broaden trade with Asia.
Everyone else picks up the post from community, apartment or rural lot line mailboxes. According to a Conference Board of Canada report, Canada Post is on track to lose $1 billion a year. If the corporation cut door-to-door delivery, the Conference Board’s vice-president of public policy David Stewart-Patterson says it could reduce those losses by more than half. “No single option we looked at will be enough to close the gap. What Canadians need to think about is a range of options and what combination is likely to meet their needs best.” Small business reliance Moving to alternate-day delivery would also save hundreds of millions of dollars and Stewart-Patterson says on the whole, residential customers don’t seem to mind that idea. But it’s a different story altogether for small-business owners. “There’s still a very high degree of dependence among small-business owners both to send out their invoices and to get their payments. ‘The cheque is in the mail’ still works for small business owners in Canada.” Ian Kimmerly is one of those small-business owners who depend on Canada Post. He owns an exclusive stamp dealership in Ottawa. “We send out many packages, probably at least a dozen large packages all over the world every week and the number of letters could be 40 or 50 in a day.” ‘Canada Post, they are panicking about what’s happening and the only future is cutting and really a smaller postal service. I think they need to sit down and look at all the opportunities before starting cutting’ – CUPW National President Denis Lemelin And that’s why Canada Post appears to be leaning towards phasing out the door-to-door service in urban areas. “When you think about it, people aren’t home, they’re ordering more and more online, the stuff in the mail is more and more valuable. A community mailbox starts to make a whole lot more sense,” says Canada Post spokesman Jon Hamilton. “I’ve had both and I know with the community box, if I’m gone for a couple days my mail is all under lock and key.” The move would result in a lot of lost jobs, but Hamilton says approximately 30,000 Canada Post employees are due to retire over the next 10 years. The Canadian Union of Postal Workers is opposed to any cuts to service.
Is Air Canada’s Rally Set to Continue?
September 19, 2013 | Comments (0) About a week ago, I discussed some of the reasons for Air Canada’s (TSX: AC.B ) strong stock performance over the past year. If the airline closed above its then-52-week high of $3.40, I promised I’d give it another look.Here’s why that ended up happening sooner than I thought. Industry rally As stocks react to positive developments over time, or as investors pile in, sensing a move upward, many companies can rise on momentum-style buying. With shares up more than 22% since the beginning of September (as of Sept. 17), and up nearly 100% year to date, there is clearly an uptrend happening in Air Canada’s stock. But what’s driving this rally? Airlines in general have been rallying this year, with United Continental Holdings (NYSE: UAL ) and Delta Air Lines (NYSE: DAL ) up 41% and 96%, respectively, year to date. These companies have benefited from a rebounding economy and disciplined capacity measures, both of which helped them post substantial earnings increases. Not only is the industry’s situation getting better, but investors are also beginning to see a new perspective on airlines: stable profits fed by higher fares and load factors and reduced competition. I don’t see this perspective fully priced into airlines yet, however. Using Businessweek’s earnings estimates and closing prices from Sept. 17, Delta Air Lines trades at only 7.8 times its 2014 fiscal year earnings, and United Continental trades for even less, at 7.3 times its 2014 earnings.