Oct. 4, 2013

CANADIAN BUSINESS CLIMATE – NEED FOR EXPORTS

  • Exports account for 1/3 of Canada’s income and most go to the U.S. and Europe with only 12% to emerging markets.
  • 1/3 of Canadian exporting firms have already expanded into new markets like China and Brazil, while 50% of firms say they plan on expanding into new countries in the next two years.
  • From 2008 to 2010, Canada lost 9,000 exporting firms.
  • Exports are $35 billion or 6.5% below pre-recession levels and more than $130 billion below where they should be in a typical recovery.
  • Canada’s share of export to the US has gone from 4.5% to 2.5%. Our loss of global trade share is the 2nd largest in the G20.
  • Service exports make up 15% or $75 billion, more than cars or machinery.
  • The Bank of Canada says that the country needs GDP growth of at least 2.5% to return to productivity. This week however they revised their summer forecast from 3.8% for Q3 and 2.5% for Q4 to a range of 2% to 2.5% for the second half of 2013.

TRANSCANADA PIPELINE – ENERGY EAST

  • TransCanada Pipeline has been listening to the concerns of the people and they want to ensure that the application to build the Energy East Pipeline is the best possible.
  • There is still plenty of field work to do and environmental reviews to complete; therefore they have delayed their application to 2014.
  • The proposed pipeline will be 4,500 km which includes a new 1,400 km stretch to Saint John, NB.
  • The capacity has been increased to 1.1 million barrels from 850,000 barrels.
  • Deloitte and Touche predicts 10,071 full time construction jobs and 1,081 permanent jobs.

TWITTER – IPO

  • Suggested valuation is $12.8 billion, 28.6x revenue over the past 12 months vs Facebook IPO of 26x price to sales and LinkedIn at 14.5x revenue.
  • Twitter posted a net loss of $69.3 million in the first half 2013 vs a loss of $49.1 million first half 2012.
  • Twitter’s average revenue per user in the latest quarter was 64¢ vs Facebook’s $1.60.
  • In June 2013 Twitter had 218 million monthly users, up 44% Y/Y. 2012 growth was 78% Y/Y.

TIDBITS

  • Angus Watt will be moderating the 2nd Premier’s Alberta Economic Summit this weekend in Edmonton.
  • Apple’s share of the overall cash held by US corporations is now 10%.
  • Credit Suisse says Walmart is being negatively impacted by higher gasoline prices as their stores are generally further away from their core customers.
  • Blackstone has acquired Dutch mall developer, Multi Corporation, to increase their real estate presence in Turkey and Europe.