Apr. 26, 2019

IMPACT OF REGULATORY BURDEN ON CANADA

  • Canada’s makers of food and consumer products are warning of more job losses and plant shutdowns as the cost of doing business here increases and the new NAFTA remains unratified.
    • Domestic food sales have not risen with the growth in the Canadian economy
    • Costs of farm products and transportation have risen faster than pricing power
    • Canada is now a net importer of food and beverages despite our weakening currency
    • Food, beverage and other related companies account for more than 300,000 jobs (almost 17% of all manufacturing positions)
  • Cda’s canola plantings are expected to drop 6.6% in 2019 as China continues to shun imports.
  • CD Howe Institute says the federal government’s policy for fuel-specific carbon pricing creates an unlevel playing field; effectively prescribing different carbon-pricing costs for producers of the same product, electricity.
  • Bill C-48, the proposed Oil Tanker Moratorium Act, drafted to protect the northwestern BC coast over all the rest of Canada while permitting tanker traffic in other parts of the country.
    • Bill C48 would directly hurt Alberta, Saskatchewan and coastal BC economies including several Indigenous groups that are dead-set against the bill.
    • Port of Vancouver, St. Lawrence River, Newfoundland and New Brunswick would not be protected and would be open for business, drilling, tanker and shipping activities.

ENERGY

  • China is allowing 11 provinces and regions to resume building coal power plants.
  • Iraq will be the 3rd largest provider of new oil supplies over the next 10 years, boosting production 30% to almost 6 million barrels a day, overtaking Canada.
  • Europe’s oil refineries stopped taking piped deliveries of Russian crude oil after the oil was found to be contaminated.
  • Nevada set a goal of getting 50% of power from renewables by 2030 and 100% by 2050.

HEALTH AND DEMOGRAPHICS

  • Over 20 million kids world wide are not vaccinated against measles, Canada ranks 7th on the list of high-income countries with unimmunized kids.
  • 110,000 cases of measles were reported in Q1 2019, up 300% from 2018.
  • 20% of Americans 65 and older are working today vs 10% in 1985.
  • In Japan, 25% of breadwinners will turn 75 or older by 2040.

CLIMATE CHANGE

  • City of Ottawa declared a state of emergency because of flooding, expected to be 11 cm higher than the peak in May 2017
  • Quebec’s Bell Falls hydroelectric dam is at risk of failing because of water levels.
  • Bank of England Governor, Mark Carney, said that a ‘massive reallocation of capital’ is needed to address climate change and that industries and companies that fail to adjust will die.

TIDBITS

  • Warren Buffett said that share repurchases could rise to $100 billion from $1.3 billion in 2018.
  • FAA approved Alphabet to start delivering goods by drone in Virginia later this year.
  • North Korean leader Kim Jong-un met with Vladimir Putin and said that North Korea will need security guarantees to give up nuclear weapons. He also asked for Putin’s support in the stalemate with the US.
  • America’s Generation Z (born 1998 – 2012) will be the ultimate pot consumers. It will have been legal all their adult lives.