Insight
  • Just days before a crush of headlines focused on Canada's austerity budget and fears about whether tiny island Cyprus would trigger a broader European crisis, there was some news about a tiny subset of Canadians that are clearly living it up in otherwise shaky economic times.

    They're probably not stressing too much about the fact that the Canadian economy is expected to grow an anemic 1.6 per cent this year, potentially constraining other crucial factors of the country's economic ecosystem. Unlike many Canadians, they're also not likely saddled with record-high debt.

    But now, Canada's Finance Minister Jim Flaherty has signaled it wants to shine light on the country's wealthiest. Last week, Ottawa announced measures to close some tax loopholes and target hidden offshore money as a way to raise revenues and slay the country's deficit. How it all plays out still remains to be seen.

    Canada is home to the world’s eighth-largest population of “ultra-rich," according to a recent National Post

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  • A former Research in Motion executive whose sensational, boozy episode aboard an Air Canada flight in 2011 has been deported from Canada, media are now revealing.

    George Campbell, who was a former vice president for the BlackBerry maker, along with Paul Alexander Wilson, also a vice president at the time, ended up restrained after "absolutely disgusting" behavior that caused not only inconvenience to passengers, but also put their safety in jeopardy, according to court documents.

    The pair had set out from Toronto aboard an Air Canada flight to Beijing on Nov. 28, 2011. Both men pleaded guilty to mischief and were given suspended sentences, one year's probation and ordered to pay restitution.

    Details of the event were outlined in a Court of Appeal of British Columbia document granting them leave to appeal the sentences related to their restitution orders.

    Campbell, originally from Scotland, was in Canada on a work permit. He was fired and subsequently deported after his dismissal, the

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  • TD Bank hit by ‘targeted’ cyber attack

    A "targeted" cyber attack shuttered Toronto-Dominion Bank's website and mobile banking service briefly on Thursday, but didn't affect clients' personal information and accounts.

    The so-called denial of service attack happened mid-morning and kept customers from logging into the website and mobile site, according to media reports.

    That type of service attack happens when hackers flood a website with a large amount of fake traffic, which prevents access.

    Bank spokeswoman Barbara Timmins told media the attack had no effect on clients’ personal information or accounts and that most of the services were restored by Thursday afternoon. The breach did not affect branch banking, telephone banking or ATMs.

    “We will work diligently to get service restored,” Timmins said in a Canadian Press report on Thursday. “This was a service disruption issue. There was no compromise to customer data.”

    The event follows similar attacks recently on financial institutions globally. This week, hackers brought

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  • The mining industry image of a dusty underground miner with a hardhat and headlamp is fading as more companies consider replacing workers with machines to address a growing global labour shortage.

    A recent report from international consultancy BDO says 50 per cent of mining company executives from around the world believe that,“substituting technology for labour” will have a positive impact on their business in 2013.

    “We are in the midst of a transition in the mining industry from a blue collar to a white collar workforce,” says Charles Dewhurst, global national resources leader, Natural Resources industry group at BDO.

    “With advancements in technology –  from new software that makes prospecting easier, to advancements in mineral transportation – the industry is at a critical juncture.”

    Of the mining executives surveyed in the BDO report, 79 per cent felt the lack of a skilled workforce would have a negative impact on their business this year.

    “International mining executives are

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  • The question isn’t why Jim Flaherty stepped in. That part we know. The issue is why Manulife listened. On Monday, Manulife announced that it would cut its five-year fixed posted mortgage rate from 3.09 per cent to 2.89 per cent, following BMO down below the 3 per cent threshold.

    They knew Flaherty was going to be mightily peeved about the move. It was not even two weeks ago that the Finance Minister warned against the perils of rock-bottom rates on household debt, and even going so far as to congratulate other banks for not shadowing BMO down the primrose path of dalliance.

    Manulife, however, couldn’t seem to help themselves. While they sided with Flaherty in principle, spokesperson Laurie Lupton telling the Globe and Mail that “Manulife Bank agrees with the government that Canadians shouldn’t take on more debt than they can handle," the bottom line is that it isn’t props from Parliament Hill that lead to big bonuses at the end of the year, it’s profits.

    This is a business, after all,

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  • Lululemon stock falls on sheer yoga pant recall

    A one-time blip or a sign yoga-wear titan, Lululemon Athletica, is expected to go through some growing pains as it seeks to expand globally? Either way, the maker of the $100 ubiquitous stretchy pant has gotten a serious wake-up call. 

    Shares of Lululemon sank on Tuesday after the popular retailer said it expects to take a “significant” financial hit as a result of an expected shortage of its signature black “Luon” women’s yoga pants.

    The Vancouver-based retailer said late on Monday it pulled long and cropped versions of the pant from its shelves because the product didn't meet its technical specifications. The pants were pulled from stores, showrooms and the e-commerce site over the weekend, representing some 17 per cent of all women’s bottoms.

    "The ingredients, weight and longevity qualities of the pants remain the same but the coverage does not," Lululemon said in a statement. That factor has resulted "in a level of sheerness in some of our women’s black Luon bottoms" that falls short

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  • The Alberta government is spending big bucks to press its case for the Keystone XL pipeline, taking out a $30,000 ad in Sunday's New York Times newspaper to ensure its message gets across loud and clear.

    The move comes after the influential newspaper came out against the project in an editorial last week titled, "When to Say No," in which the editorial board urged U.S. President Barack Obama to reject the pipeline.

    In a separate column, prominent journalist Thomas Friedman wrote "No to Keystone. Yes to Crazy," urging opponents of the project to protest loudly and crazily to get some "really good systemic responses to climate change" because he doesn't think Obama will reject the project.

    "It's important for Alberta to get the facts on the table as widely as possible," Stefan Baranski, a spokesman for Premier Alison Redford, told the Canadian Press, noting the ad was taken to counter the editorial stance of the New York Times.

    "Certainly the Sunday Times is a critically important

    Read More »from Keystone XL: Alberta lobbies in U.S. with New York Times ad
  • Why we need to keep talking about Keystone

    With an imminent decision by U.S. President Barack Obama on the Keystone XL pipeline, proponents on both sides of the project are wasting no time keeping the pressure on. And so they shouldn't. The public debate is necessary.

    This week, the New York Times and one of its prominent columnists came out against the project, stirring all sorts of emotions as talk of the pipeline often does.

    In an editorial, the newspaper's message was loud and clear and spoke directly to the president: "He should say no, and for one overriding reason: A president who has repeatedly identified climate change as one of humanity’s most pressing dangers cannot in good conscience approve a project that — even by the State Department’s most cautious calculations — can only add to the problem," the Times opined.

    In itself, the pipeline "will not push the world into a climate apocalypse," but will continue to fuel an appetite for oil and add to the atmosphere's carbon load. "There is no need to accept it,” the

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  • Canadians’ household net worth hit a record high in the fourth quarter of 2012, driven by higher home prices and stabilizing debt loads, which economists say is a sign of “financial maturing.”

    The market value of Canadian household net worth rose by 1.4 per cent or $93 billion to $7 trillion, according to an RBC Economics analysis of the latest Statistics Canada data released Friday.

    “This represents the highest level of aggregate net worth on record,” said RBC economist Laura Cooper.

    Cooper noted the gain in net worth reflected the $108 billion increase in household assets values (rising to $8.7 trillion), partially offset by the $14 billion increase (to $1.7 trillion) in household liabilities.

    Per capita household net worth was $199,700 in the quarter, which was up from $197,400 in the previous quarter, also an all-time high, Cooper said.

    While Canadians’ debt-to-income ratio stayed at a record 165 per cent in the fourth quarter, and household debt grew by 5.5 per cent in the

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  • In what only could be described as a complete shocker, it appears that my mother is not the only out there still buying stamps and mailing letters. Indeed, the market among those still unconvinced of the merits of email is such that counterfeit rings are actively trafficking in fake stamps.

    According to a CBC report, the counterfeit activity is costing Canada Post $10 million annually through lost sales. As much as 1 per cent of all stamps in circulation could be counterfeit, as evidenced by a study conducted by stamp expert and Canada Post consultant Richard Gratton.

    In 2010, Gratton inspected 27,000 envelopes and found 32 different forgeries in play, the CBC reports.

    As a result, Canada Post now has 80 inspectors specifically tasked to ferret out counterfeiting operations. In 2011, their efforts contributed to a year-long investigation of a Quebec-based ring that had been distributing stamps mostly through convenience stores in Montreal and Toronto. The RCMP raid of 24 stores

    Read More »from Counterfeit stamps cost Canada Post $10M per year: expert

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