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Canadian economy expands at 2.6% pace in November

Written By Unknown on Jumat, 31 Januari 2014 | 22.40

oil

The resources sector expanded in November after a slight contraction the previous month.

Canada's gross domestic product was 2.6 per cent bigger in November than it was the same month a year earlier.

Statistics Canada reported Friday that Canada's GDP expanded by 0.2 per cent during the month. It was the fifth straight monthly increase and in line with what economists were expecting.

For comparison purposes, the 2.6 per cent annualized figure is better than the 1.9 per cent that the U.S. economy expanded last year.

The oil and gas industry, after a small monthly contraction of 0.7 per cent in October, rebounded the next month, expanding by 2.6 per cent. Both oil and natural gas production grew.

Utilities rose by 2.1 per cent on a monthly basis. The demand for both electricity and natural gas was up, in part because of colder than usual weather.

"The quarter likely ended on a sour note in December, as severe winter weather led to power outages and otherwise crimped activity in many parts of the country," TD Bank economist Leslie Preston noted. "That leaves the economy with very weak momentum heading into the first quarter of 2014, which could now see a more modest growth tally."


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CSEC used airport Wi-Fi to track Canadian travellers: Edward Snowden documents

A top secret document retrieved by U.S. whistleblower Edward Snowden and obtained by CBC News shows that Canada's electronic spy agency used information from the free internet service at a major Canadian airport to track the wireless devices of thousands of ordinary airline passengers for days after they left the terminal.

After reviewing the document, one of Canada's foremost authorities on cyber-security says the clandestine operation by the Communications Security Establishment Canada (CSEC) was almost certainly illegal.

Ronald Deibert told CBC News: "I can't see any circumstance in which this would not be unlawful, under current Canadian law, under our Charter, under CSEC's mandates."

The spy agency is supposed to be collecting primarily foreign intelligence by intercepting overseas phone and internet traffic, and is prohibited by law from targeting Canadians or anyone in Canada without a judicial warrant.

As CSEC chief John Forster recently stated: "I can tell you that we do not target Canadians at home or abroad in our foreign intelligence activities, nor do we target anyone in Canada.

"In fact, it's prohibited by law. Protecting the privacy of Canadians is our most important principle."

But security experts who have been apprised of the document point out the airline passengers in a Canadian airport were clearly in Canada.

CSEC said in a written statement to CBC News that it is "mandated to collect foreign signals intelligence to protect Canada and Canadians. And in order to fulfill that key foreign intelligence role for the country, CSEC is legally authorized to collect and analyze metadata."

Metadata reveals a trove of information including, for example, the location and telephone numbers of all calls a person makes and receives — but not the content of the call, which would legally be considered a private communication and cannot be intercepted without a warrant.

"No Canadian communications were (or are) targeted, collected or used," the agency says.

In the case of the airport tracking operation, the metadata apparently identified travelers' wireless devices, but not the content of calls made or emails sent from them.

Black Code

Diebert is author of the book Black Code: Inside the Battle for Cyberspace, which is about internet surveillance, and he heads the world-renowned Citizen Lab cyber research program at the University of Toronto's Munk School of Global Affairs.

He says that whatever CSEC calls it, the tracking of those passengers was nothing less than an "indiscriminate collection and analysis of Canadians' communications data," and he could not imagine any circumstances that would have convinced a judge to authorize it.

Cellphone-travel

A passenger checks his cellphone while boarding a flight in Boston in October. The U.S. Federal Aviation Administration issued new guidelines under which passengers will be able to use electronic devices from the time they board to the time they leave the plane, which will also help electronic spies to keep tabs on them. (Associated Press)

The latest Snowden document indicates the spy service was provided with information captured from unsuspecting travellers' wireless devices by the airport's free Wi-Fi system over a two-week period.

Experts say that probably included many Canadians whose smartphone and laptop signals were intercepted without their knowledge as they passed through the terminal.

The document shows the federal intelligence agency was then able to track the travellers for a week or more as they — and their wireless devices — showed up in other Wi-Fi "hot spots" in cities across Canada and even at U.S. airports.

That included people visiting other airports, hotels, coffee shops and restaurants, libraries, ground transportation hubs, and any number of places among the literally thousands with public wireless internet access.

The document shows CSEC had so much data it could even track the travellers back in time through the days leading up to their arrival at the airport, these experts say.

While the documents make no mention of specific individuals, Deibert and other cyber experts say it would be simple for the spy agency to have put names to all the Canadians swept up in the operation. 

All Canadians with a smartphone, tablet or laptop are "essentially carrying around digital dog tags as we go about our daily lives," Deibert says.

Anyone able to access the data that those devices leave behind on wireless hotspots, he says, can obtain "extraordinarily precise information about our movements and social relationships."

Trial run for NSA

The document indicates the passenger tracking operation was a trial run of a powerful new software program CSEC was developing with help from its U.S. counterpart, the National Security Agency.

In the document, CSEC called the new technologies "game-changing," and said they could be used for tracking "any target that makes occasional forays into other cities/regions."

Sources tell CBC News the technologies tested on Canadians in 2012 have since become fully operational.

CSEC claims "no Canadian or foreign travellers' movements were 'tracked,'" although it does not explain why it put the word "tracked" in quotation marks.

Deibert says metadata is "way more powerful than the content of communications. You can tell a lot more about people, their habits, their relationships, their friendships, even their political preferences, based on that type of metadata."

The document does not say exactly how the Canadian spy service managed to get its hands on two weeks' of travellers' wireless data from the airport Wi-Fi system, although there are indications it was provided voluntarily by a "special source."

The country's two largest airports — Toronto and Vancouver — both say they have never supplied CSEC or other Canadian intelligence agency with information on passengers' Wi-Fi use.

Alana Lawrence, a spokesperson for the Vancouver Airport Authority, says it operates the free Wi-Fi there, but does "not in any way store any personal data associated with it," and has never received a request from any Canadian intelligence agency for it.

A U.S.-based company, Boingo, is the largest independent supplier of Wi-Fi services at other Canadian airports, including Pearson International in Toronto.

Spokesperson Katie O'Neill tells CBC News: "To the best of our knowledge, [Boingo] has not provided any information about any of our users to the Canadian government, law enforcement or intelligence agencies."

It is also unclear from the document how CSEC managed to penetrate so many wireless systems to see who was using them — specifically, to know every time someone targeted at the airport showed up on one of those other Wi-Fi networks elsewhere.

Deibert and other experts say the federal intelligence agency must have gained direct access to at least some of the country's main telephone and internet pipelines, allowing the mass-surveillance of Canadian emails and phone calls.

'Blown away'

Ontario's privacy commissioner Ann Cavoukian says she is "blown away" by the revelations.

"It is really unbelievable that CSEC would engage in that kind of surveillance of Canadians. Of us.

"I mean that could have been me at the airport walking around… This resembles the activities of a totalitarian state, not a free and open society."

 Ann Cavoukian

Privacy commissioner Ann Cavoukian. (Colin Perkel/Canadian Press)

Experts say the document makes clear CSEC intended to share both the technologies and future information generated by it with Canada's official spying partners — the U.S., Britain, New Zealand and Australia, the so-called Five Eyes intelligence network.

Indeed, the spy agency boasts in its leaked document that, in an apparently separate pilot project, it obtained access to two communications systems with more than 300,000 users, and was then able to "sweep" an entire mid-sized Canadian city to pinpoint a specific imaginary target in a fictional kidnapping.

The document dated May 2012 is a 27-page power-point presentation by CSEC describing its airport tracking operation.

While the document was in the trove of secret NSA files retrieved by Snowden, it bears CSEC's logo and clearly originated with the Canadian spy service.

Wesley Wark, a renowned authority on international security and intelligence, agrees with Deibert.

"I cannot see any way in which it fits CSEC's legal mandate."

Wark says the document suggests CSEC was "trying to push the technological boundaries" in part to impress its other international counterparts in the Five-Eyes intelligence network.

"This document is kind of suffused with the language of technological gee-whiz."

Wark says if CSEC's use of "very powerful and intrusive technological tools" puts it outside its mandate and even the law, "then you are in a situation for democracy where you simply don't want to be."   

Like Wark and other experts interviewed for this story, Deibert says there's no question Canada needs CSEC to be gathering foreign intelligence, "but they must do it within a framework of proper checks and balances so their formidable powers can never be abused. And that's the missing ingredient right now in Canada."

The only official oversight of CSEC's spying operations is a retired judge appointed by the prime minister, and reporting to the minister of defence who is also responsible for the intelligence agency.

"Here we clearly have an agency of the state collecting in an indiscriminate and bulk fashion all of Canadian communications and the oversight mechanism is flimsy at best," Deibert says.

"Those to me are circumstances ripe for potential abuse."

CSEC spends over $400 million a year, and employs about 2,000 people, almost half of whom are involved in intercepting phone conversations, and hacking into computer systems supposedly in other countries.

It has long been Canada's most secretive spy agency, responding to almost all questions about its operations with reassurances it is doing nothing wrong.

Privacy watchdog Cavoukian says there has to be "greater openness and transparency because without that there can be no accountability.

"This trust-me model that the government is advancing and CSEC is advancing – 'Oh just trust us, we're doing the right thing, don't worry' — yes, worry! We have very good reason to worry."

In the U.S., Snowden exposed massive metadata collection by the National Security Agency, which is said to have scooped up private phone and internet records of more than 100 million Americans.

A U.S. judge recently called the NSA's metadata collection an Orwellian surveillance program that is likely unconstitutional.

The public furor over NSA snooping prompted a White House review of the American spy agency's operations, and President Barack Obama recently vowed to clamp down on the collection and use of metadata.

Cavoukian says Canadians deserve nothing less.

"Look at the U.S. — they've been talking about these matters involving national security for months now very publicly because the public deserves answers.

"And that's what I would tell our government, our minister of national defence and our prime minister: We demand some answers to this."


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45% of Canadians willing to sell their digital data

Amid the controversy over companies harvesting personal information on consumers – everything from their ages to their search interests – an increasing number of  people want something in return.

A new study from Microsoft Corp. shows 32 per cent of Canadians are willing to sell all their digital data to the right company for the right price and 45 per cent would sell at least some of it.

Those high numbers didn't surprise interim privacy commissioner Chantal Bernier, who says Canadians have a sophisticated understanding of how their data is used.

"Canadians yes, want to remain in control. They understand there is a monetary value to their personal information and they want to make sure they get their value for it," she said in an interview with CBC's The Lang & O'Leary Exchange.

The Digital Trends study by Microsoft and IPG Mediabrands found 45 per cent of Canadian respondents are interested in selling their data for a reward, but many don't know how. 

The findings, from a survey of 9,000 people worldwide, including 1,050 in Canada, points to a need for those gathering digital data to engage with online and mobile consumers, Microsoft says.

There was strong awareness among Canadians that their data is valuable to marketers and service providers, with 35 per cent saying they had thought about how much information they hand over when they shop or browse.

Younger respondents were more likely to say they would be willing to sell all their data, or would show greater loyalty to a brand that gave them something in return. In addition to the survey, Microsoft interviewed 45 "early adopters" of technology and found them more responsive to some kind of trade between their own privacy and those who want to gather data.

Among that group, the average asking price for selling data was $2,168.

Canadians already are familiar with several types of reward programs – including grocery chains that give reward points for each dollar spent and credit cards that give travel or bonus points to cardholders.

But only 28 per cent said they knew how to harness their online data for rewards.

Misuse of data in the past has made many consumers distrustful of companies that gather information about them.

This month, the federal privacy commissioner reprimanded Google  after an investigation found that a man's health information was used to target ads for medical devices to him. There has also been backlash over issues such as Target's loss of consumer data and Facebook's use of user data.

Bernier said the privacy commission made the Google ruling public to raise awareness among digital companies that they have to "up their game" to respect privacy laws.

She said the commission's own analysis of companies that gather digital data shows a wide range of privacy policies.

"Privacy policies were either totally insufficient or unreadable, way too long – some were good, some were right, but clearly there is an issue," she said.

Microsoft advises digital services to "put consumers first – be transparent and tell them how you use their information." The study says consumers should be empowered to control their own data and exchange it for rewards.

Just how that relationship would be managed is not outlined, though Microsoft gives the example of Mydex, a British non-profit that manages personal data and gives consumers the power to parcel it out to selected brands.

The digital trends report also found:

  • 30 per cent of Canadians already expect brands to know them and offer something they didn't even know they wanted.
  • 27 per cent of Canadians are interested in tracking biodata such as heart rate and distance walked using wearable devices.
  • 47 per cent of consumers want to spend time away from the internet.

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Joe Oliver orders review of propane price jump, shortages

The federal government has ordered the National Energy Board and the Competition Bureau to review the sharp spike in propane prices and shortages in many regions that have hurt rural homeowners and businesses that rely on the fuel.

Natural Resources Minister Joe Oliver said in question period Thursday he is concerned for families who rely on affordable propane to heat their homes and so will be asking the two organizations to "review propane market issues including high prices and scarcity."

Propane shortage

Propane suppliers in eastern Ontario have faced shortages after a prolonged cold snap this winter. (CBC)

Propane prices had remained stable from 2011 until late 2013, with the average retail prices in Canada falling between 69 and 75 cents a litre.

But a greater need from corn producers to use the fuel to dry their crop this fall and an earlier and harsher than expected winter has caused demand to spike, Oliver told reporters after question period.

Two months ago, the price was 74.2 cents a litre nationally. A month ago, it was 79.9 cents a litre. As of Tuesday, it had risen to 92 cents a litre.

Earlier this week, Ontario Energy Minister Bob Chiarelli urged Oliver to act and develop a national response to the issue.

But Oliver said it was within Ontario's power to regulate the distribution and pricing of propane.

"They can't complain about pricing but not regulate pricing," said Oliver. "They can't have it both ways."

The price spike is now making Steve Koopman of Perth Road Village — a community a 23 kilometres north of Kingston — have second thoughts about his decision to switch to propane.

"I grew up in the suburbs with natural gas and I was used to consistent pricing and predictability. Propane looked like a good option, but unfortunately we really got hit hard this season," said Koopman.

In his area, he says the price has gone from 60 to 86 cents a litre. His January refill cost $800.

Shortages of propane have also been a problem in many regions, including eastern Ontario. Koopman said the shortages are also a greater cause of concern for him.

"Now I'm literally checking once a week to see what the level is at. I've gone and bought a 100-pound tank out of my own pocket making sure my family, my daughters don't freeze to death in a winter like [this one]," he said.


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Keystone XL pipeline report expected today, CNN says

The Canadian Press Posted: Jan 31, 2014 7:16 AM ET Last Updated: Jan 31, 2014 7:16 AM ET

An environmental impact study into the Keystone XL pipeline project is likely to be announced on Friday afternoon, a U.S. media report says.

CNN cites two senior administration officials and another unidentified source familiar with the timing.

Once the results are out, eight U.S. agencies will examine them, then send their observations to Secretary of State John Kerry. President Barack Obama would then decide whether or not to approve the pipeline.

A final decision may not come for several months, but this study is seen as a critical step in determining whether the project will go ahead.

If ultimately approved, the TransCanada Corp. pipeline would ship bitumen from Alberta's oilsands to refineries on the U.S. Gulf Coast.

Supporters say the pipeline would reduce imports from overseas and create jobs while opponents warn against potential environmental damage.

One diplomat in Washington told The Canadian Press this week that the results are "going to be positive for the project."

Earlier this month, Foreign Affairs Minister John Baird was in Washington pleading for a quick decision. He said enough time had been lost on the project and didn't want to see another construction season wasted.

Kerry responded that there would be no fast-tracking the process.


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Ontario raising minimum wage to $11 an hour

Written By Unknown on Kamis, 30 Januari 2014 | 22.40

Breaking

The Canadian Press Posted: Jan 30, 2014 7:06 AM ET Last Updated: Jan 30, 2014 10:30 AM ET

Ontario's Liberal government is raising the minimum wage to $11 an hour effective June 1. The increase of 75 cents an hour was announced today by Premier Kathleen Wynne.

The Liberals say they will introduce legislation to tie future increases to the rate of inflation. If passed, future increases would be announced on April 1 and go into effect on Oct. 1.

Wynne said this year's 75 cent increase will account for inflation since 2010, when the previous Liberal government froze the minimum wage.

Anti-poverty activists and labour groups had been lobbying for an increase in the rate to $14 an hour, but Labour Minister Yasir Naqvi said that would be "too much" for businesses to handle and could prompt some to cut jobs.

With files from The Canadian Press

Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.

Submission Policy

Note: The CBC does not necessarily endorse any of the views posted. By submitting your comments, you acknowledge that CBC has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that comments are moderated and published according to our submission guidelines.


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Facebook shares open at record high after huge profit jump

Facebook shares opened at the highest level they've ever been on Thursday, a day after the social media company posted impressive earnings numbers.

Facebook stock was changing hands at $60.92 on Friday, up 13 per cent from Wednesday's closing level. Before markets opened, institutional investors had pushed the shares up even higher in premarket trading.

After markets closed on Wednesday, Facebook said its revenue increased 63 per cent in the fourth quarter, as advertising on its mobile services continued to accelerate.

The world's No. 1 social networking company said revenue in the last three months of the year totalled $2.59 billion US, beating the average analyst expectation of $2.33 billion. That's up 63 per cent on $1.6 billion in the last quarter of 2012.

Net income for the quarter was $523 million, up from $64 million the previous year.

"It was a great end to the year for Facebook," said Mark Zuckerberg, Facebook founder and CEO. "We're looking forward to our next decade and to helping connect the rest of the world."

The company's net income for 2013 was $1.5 billion on revenue of $7.87 billion, an increase of 55 per cent year-over-year.

Facebook says it had 1.23 billion monthly active users as of Dec. 31, 2013, an increase of 16 per cent from the previous year. Users on mobile totalled 945 million, an increase of 39 per cent.

Mobile ad revenue represented more than half of ad revenue in the fourth quarter of 2013, a reflection of how far the social media platform has come in developing mobile services.

That contrasts sharply with Yahoo, which reported falling display ad revenue yesterday. Despite a profitable year, Yahoo shares were down 8.4 per cent in trading today, as investors blamed CEO Marissa Mayer for failing to harness the power of internet advertising.

Facebook has found success by dropping its ad rates for mobile and display ads but selling more placements.  


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Raising minimum wage could rescue the economy: Don Pittis

U.S. President Barack Obama, Ontario Premier Kathleen Wynne and Bank of Canada Governor Stephen Poloz are all on the same page. They just don't know it yet. 

This week, Obama and Wynne talked about raising the minimum wage, with Ontario announcing on Thursday that the rate would rise to $11 an hour starting June 1. Last week, Poloz warned about disinflation.

It's a marriage made in economics heaven. Let me explain.

Left-of-centre politicians want to raise the wages of the very poorest. From a humanitarian point of view, it seems an easy choice. Just listen to some of the recent interviews on CBC's The Current with people trying to raise kids while making minimum wage. Half of minimum wage earners in Ontario work for large corporations. The idea of corporate executives, members of the One Per Cent, getting richer and richer while their workers can't feed their kids properly is not an appealing thought to many Canadians.

The difficulty for politicians who, for moral or electoral reasons, would like to raise the minimum wage is that they face stiff headwinds.

A loud voice of opposition

We should note here that a huge majority of businesses pay most of their employees more than the minimum, and there are good reasons for doing it. According to a recent Statistics Canada report, "in 2009, some 817,000 people were working at or below the provincial minimum wage. This represents 5.8% of all employees in Canada, a slight increase compared with the 5.2% recorded the previous year." 

But those businesses that don't want to pay higher wages to their minimum wage employees represent a loud voice of opposition.

They are supported by a very traditional market argument that says raising minimum wage results in fewer jobs and is thus bad for the wider economy. Of course, the extension of this argument is that no minimum wage at all would be even better for the economy. If you think that, it is time for you to emigrate. There are many countries with no minimum wage.

The trouble (if you think it is trouble) is that in rich countries such as Canada, we have a minimum standard that we declare socially acceptable. And this throws a monkey wrench into the economic argument. It reminds of something I noticed while living in England back in the 1990s.

Railway workers had just negotiated a salary rise, and it happened to be just as my wife and I were looking for a cheap apartment to rent. The new railway salary was exactly the same as the lowest possible market rent. So how, I asked, could railway workers live on that salary? I quickly learned that it was quite normal for low wage workers in Britain to live in government subsidized housing.

Subsidizing employers?

It struck me then, as it strikes me now, that in a society that sets a minimum standard for what people need to live in terms of health care, housing, social support and other things provided by taxpayer funded services, allowing employers to pay less than that standard is in effect a taxpayer subsidy to the employers. In this scenario, those hiring low wage workers are not paying the full cost of doing business, and neither are their customers.

By this way of thinking, the kind of jobs that Canada needs, to build the kind of economy Canadians want, are not minimum wage jobs. The jobs we need are those that pay a wage sufficient to live an acceptable Canadian lifestyle. And that is what most Canadian employers do.

But these kinds of arguments do not mollify those who oppose a rise in the minimum wage. Perhaps they need a colder, more economic argument. 

And here is where Stephen Poloz comes riding to the rescue with his latest warning about disinflation. Poloz's job as Bank of Canada governor is to keep Canadian inflation at two per cent.

The importance of keeping inflation high enough is a traditional economic argument at least as old and as strong as that against raising minimum wage. I have explained the argument here and here, so I won't repeat it.

The important point is that disinflation can lead to deflation, which causes economies to seize up and begin to shrink. 

A great opportunity

The conventional way to drive off disinflation and boost inflation is to cut interest rates. But the central bank and the government are both wary of that, for fear it spurs a new round of borrowing in a population that has already borrowed too much and pushes up house prices to unsustainable levels.

And here is the great opportunity. By gradually raising minimum wage, some small fraction of the six per cent of minimum wage jobs may or may not disappear. But the payoff will be huge, as the whole economy will be saved from disinflation. Poor people spend their money; they don't use it to bid up assets. But they can bid up prices, starting the slow cycle that leads to increased inflation.

Not only that, but employers that are forced to pay higher wages will also raise their prices slightly to cover the added costs. If customers won't pay a few cents more for their burgers and dollar-store items, then that is an economic signal Canada, as a country with minimum social standards, cannot afford those products and services. 

Up till now, governments and central banks have cut interest rates and printed money. They admitted that pumping money into the economy had the effect of bidding up the stocks and property owned by the rich, making the rich richer. When some objected, they said sacrifices had to be made; it was the only way to save the economy. 

Now, we must save the economy from disinflation and evil deflation. While some may object to the poor becoming richer, sacrifices must be made. So far, the rich have taken all the flak for benefiting from the government's economic rescue strategy. Now it is the turn of the poor to get a little richer to benefit us all.


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Keystone XL report by U.S. expected to be positive

Canadian officials say they're encouraged by what they're hearing about a long-awaited report on the environmental impact of the Keystone XL pipeline that could be released imminently by the U.S. State Department.

Those sources in Washington and Ottawa say they've been told the report could be ready for release within a few days — and that it will bolster the case for the controversial energy project.

"What we're hearing is that it's going to be positive for the project — and therefore positive for Canada," said one diplomat in Washington, who spoke on condition of anonymity because he hadn't seen the report himself, although he had discussed its contents with American contacts.

"The rumours certainly are that it's very thorough and that the analysis will support the project."

He said there was optimism amongst Canadian officials but no celebration just yet: "You're not going to be seeing people high-fiving and toasting with champagne," he said. "It's just another step (in the process)."

Rigorous report must stand up to litigation

Earlier this month, Foreign Affairs Minister John Baird was in Washington pleading for a decision soon. He said enough time had been lost on the project and didn't want to see another construction season wasted.

His U.S. counterpart, John Kerry, responded that there would be no fast-tracking the process.

'The rumours certainly are that it's very thorough and that the analysis will support the project.'- Washington diplomat

The actual writing of the report began in August, according to the Canadian source in D.C. With the threat of almost-certain lawsuits looming, regardless of what the final Keystone decision might be, he said he'd heard from U.S. officials that the report authors were under pressure to be especially rigorous.

"What we need is an (environmental impact statement)," he said, "that is so thoroughly done that it will stand up to litigation."

The report is the latest environmental impact statement on the $7-billion TransCanada project to come from the State Department, which has jurisdiction because the pipeline crosses an international boundary.

The last report, released a year ago, concluded the project would not significantly impact the rate of oilsands development or crude oil demand, nor would it pose any greater risk to the environment than other modes of transportation. U.S. President Barack Obama has since declared that he will only approve the pipeline if it can be shown that it will not significantly increase greenhouse gas emissions.

Natural Resources Minister Joe Oliver said Wednesday that he expected the forthcoming report to draw the same conclusions as the last one. "There are no new facts on the ground," Oliver said. "So you know, it's to be expected that they would come out in the same way."

Once that step is taken, the U.S. administration will conduct a 90-day review to determine if the project is in the national interest.

Report may be delayed

Another Canadian diplomat warned against concluding that the report's release is automatically imminent. Even if it's slated to come in the next few days, there's always a chance someone, somewhere, could hold up its release.

For starters, the accepted wisdom in Washington has been that the State Department document would not be released until an inspector general's review of conflict-of-interest allegations against a consultant working on the report.

That review into the activities of contractor Environmental Resources Management came after news that several of its consultants working on the project had also worked for TransCanada and its subsidiaries, without that previous work having been disclosed.

Gary Doer, Canada's ambassador to the U.S., refused to speculate on the timing or content.

"We have no certainty on the timing," Doer said in an interview.

But he expressed faith that the Canadian position would prevail: that the pipeline would be the safest, cleanest way to ship oil that would be transported to the U.S., one way or the other.

Referring to train accidents, including the tragedy in Lac-Megantic, Que., Doer said events since the last State Department review had only served to reinforce the earlier conclusion.

"We believe that the facts have, regrettably, become only stronger on oil vs. rail," he said. "We believe that (the earlier conclusion by the State Department) will be maintained: higher cost, higher (greenhouse gases) without a pipeline."

A State Department spokesperson wouldn't confirm anything.

"The State Department is working on the Final Supplemental Environmental Impact Statement (Final SEIS), addressing issues in more than 1.5 million public comments, as appropriate. There is no time line for the release of the Final SEIS," the spokeswoman said in an email. "The department continues to review the presidential permit application for the proposed Keystone XL pipeline in a rigorous, transparent, and objective manner."


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Canadian dollar headed to 85 cents US, TD says

Loonie 20131231

The loonie could be headed even lower in the near term, economists predicted Thursday. (The Canadian Press)

The beaten-down loonie will head even lower by this summer, one of Canada's largest banks predicted Thursday.

TD Bank economists Craig Alexander and Leslie Preston said in a note Thursday that they expect the Canadian dollar to sink as low as 85 cents against the U.S. dollar later this year, before rebounding slightly to back near the 90-cent level sometime in 2015.

"The factors which have taken the Canadian dollar lower are unlikely to shift over the next year or so," they said. "In the near-term, the loonie is forecast to fall as low as 85 cents U.S. by mid-year. However, it is then expected to appreciate slightly as inflation in Canada starts increasing and the Bank of Canada gets closer to raising interest rates."

The loonie flip-flopped Thursday morning,settling around the 89.63 level. That was up slightly from Wednesday's level, but it has been seesawing all day.

The loonie has lost almost five cents since the start of the year, caught up in a global trend that's seeing the U.S. dollar gain in value against almost every other currency.

"When Canadians talk about the Canadian dollar, what they really mean is the value of a Canadian dollar relative to a U.S. dollar, so even if nothing changes in Canada's fundamentals, a strengthening U.S. dollar will see the loonie fall," TD said.

Weak economic data and slumping commodity prices have also contributed to the loonie's decline.

"The downward trend in [the Canadian dollar] is too strong to fight or attempt to pick a bottom," Scotiabank's currency strategist, Camilla Sutton, said in a separate note Thursday morning.


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Bitcoin sellers in Silk Road case charged with conspiracy

Written By Unknown on Rabu, 29 Januari 2014 | 22.40

2 men allegedly sold $1M in Bitcoins over black market website

The Associated Press Posted: Jan 27, 2014 12:49 PM ET Last Updated: Jan 28, 2014 9:59 PM ET

Close

Bitcoin after Charlie Shrem 2:17

Bitcoin after Charlie Shrem 2:17

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Bitcoin poised for mainstream? 2:20

Bitcoin poised for mainstream? 2:20

U.S. prosecutors say two men are charged with conspiring to commit money laundering by selling more than $1 million in Bitcoins to users of the black market website Silk Road, which lets users buy illegal drugs anonymously.

Authorities say Charlie Shrem was arrested Sunday at New York's Kennedy Airport while Robert Faiella was arrested Monday at his Florida home.

Prosecutors say in a news release that Faiella sold Bitcoins to users seeking to buy illegal drugs on the site.

They say Shrem bought drugs on Silk Road and helped Faiella exchange more than $1 million in cash for Bitcoins so they could make illegal purchases.

It wasn't immediately clear who would represent Faiella and Shrem in court.


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The state of the union speech Barack Obama would never give

With few exceptions (such as Gerald Ford's blunt 1975 assessment that "the state of the union is not good") the president's annual report to Congress is an exercise in reassuring Americans they are exceptional, blessed by God, leading the world, and headed for better things.

Last night's was no different; at best, it amounted to an optimistic statement of intent by a president who has been thwarted constantly by other arms of government since assuming office.

So, let's imagine what an outsider like, say, me, might submit if asked for a more succinct, less varnished assessment of the state of the American union. It would probably go something like this:

"My fellow Americans,

"A month after I assumed office, in the midst of a financial crisis that terrified us all, I stood in this place and promised we would not just recover, but that we would emerge stronger.

"Well, five years later that hasn't happened for most of us. To quote a common jape, the economy's doing well, except for most of the people in it.

"Half the counties in this great nation have not yet made it back to pre-recession levels.

"Our public debt, relative to our economy, is higher than the European average, and we know what a mess Europe is. As those countries struggle to repair their damage, we do foolish things like threatening default, and shutting down government.

"And yet, we actually do seem to be recovering faster than the rest of the world from the disaster our very own banking system created.

"A lot of that is because of our incredibly privileged position as printer of the world's reserve currency. It makes us immune to economic realities endured by the rest of the world, at least for the time being.

"We are lucky. And we should realize that.

"As much as some think government is the problem, it has actually been the solution. My predecessor's decision to embrace socialism in 2008 and use tax money to rescue our banks seems to have worked. As did the heavy spending I undertook that so many of you are so angry about in retrospect.

"Our Federal Reserve has also printed trillions of dollars, which helped prevent collapse, although frankly, folks, no one has any idea how that's going to turn out now that the Fed's winding it up.

"I guess we'll see.

"I do want to reassure you tonight that I still regard economic inequality as the defining issue of our time. But I must confess it has grown during my time in office.

"I know I promised to do something about it. But for some reason, millions of you who have seen your real incomes shrink relentlessly continue to vote against your own economic interest. You also want more tax cuts for the well off, perhaps because you still think you have a shot at getting rich.

"Well, I'm going to be honest tonight: Most of you don't.

"I'm not sure what else I can say, or do, about that, given our system. But that particular American dream appears to be dead.

"Turning to my most solemn duty, the protection of our country, you all by now know that our intelligence services have become the most powerful in the history of the world. They spy on just about everyone, everywhere, including you, my fellow Americans.

"Unfortunately, you heard that first this past year not from me, your president, but from a 29-year-old NSA contractor.

"So, I decided to conduct a review of how we gather intelligence, and I've decided some changes are needed, but really, I'm afraid there's not really much I can do about that, either, my fellow Americans.

"I've discovered the truth of what Senator Frank Church warned us about nearly 40 years ago: We've created something we cannot really control. And we need it to deal with the bad guys. We just have to live with that.

"I can report, though, that our long foreign wars are over, even if Iraq appears to be sliding back into violent anarchy, and Afghanistan probably isn't far behind.

"To our many shattered warriors, and to those of you who lost sons and daughters in those countries, I wish I could say it was worthwhile. Perhaps it was. I just don't know. None of us does.

"Let me now say something about our health-care reform, what I've been proud to call Obamacare: It's a mess. A stew of regulations and unintended consequences.

"In retrospect, we should have done what just about every other Western nation has done and put in place a true, publicly insured system, with a single payer, available to everyone, alongside a private system for those who can afford it.

"That's what I really wanted to do. But what can I say? I came to office believing in compromise, and to say it hasn't worked was an understatement.

State of Union

Members of the Senate Republican leadership, from left, Conference Chair John Thune, Minority Whip John Cornyn, Minority Leader Mitch McConnell and Sen. Orrin Hatch, right, watch as President Barack Obama delivers the State of Union address Tuesday, Jan. 28, 2014, in Washington. (Larry Downing/The Associated Press)

"I can only hope you, my fellow Americans, will embrace what we created, as you have embraced all your other entitlements. It's out of my hands now.

"Finally, let me turn to the people in this room: The 113th Congress of these United States.

"To you, I say: Really? Seriously? Are you kidding me? You are on your way to becoming the least productive Congress in our history. You have been, quite literally, useless.

"You managed to pass 58 bills last year, and a lot of those were to name post offices.

"You members of the House of Representatives are the entrenched product of gerrymandering; you in fact represent the calcification of twisted democracy.

"And how many times have you held your useless votes to repeal Obamacare? Fifty, right?

"Great job. Congratulations.

"And you, my former colleagues in the United States Senate, are cowards.

"This time last year, we were still grieving over the murders of 20 schoolchildren at Sandy Hook Elementary School in Connecticut. I asked for some basic measures to protect Americans … and you did nothing.

"You couldn't even find the courage to pass background checks on new gun buyers, which most Americans support.

"Five of the final "No" votes were from members of my own party. Shame on you, and shame on us.

"So I'm announcing tonight that I will use whatever powers I possess to act unilaterally. But really, it won't amount to much.

"Remember, my first promise, back in those hopeful days of 2009, was to close the Guantanamo Bay detention centre. You wouldn't even let me do that.

"There are those of you who will say this speech is too dark, that a president should not speak so ill of our democracy. And indeed, there are wonderful things about this country I have not said tonight.

"Well, I suggest we are already very good at self-congratulation, my fellow Americans, and more of that is not what you need from me. I suggest we need to co-operate, pay our taxes, educate our children, care for our weakest members, and stop whining at one another.

"This chamber would be an excellent place to begin.

"God bless America."


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Super Bowl ads build buzz through contests, controversy

Advertisers buying air time during this year's Super Bowl are paying an average of $4 million US for 30 seconds.

It's highly unlikely that half a minute of attention is worth such an investment, so to make their commercial pay, marketers come up with ways to keep consumers engaged over several weeks or months. This year, many of the ads feature a common theme: contests. 

The Crash the Super Bowl Contest encourages fans to express their love for Doritos by spending months creating their own commercial. Millions more fans then vote for their favourite, with the winning spot running in the game and earning the creator $1 million.

In a similar move, software maker Intuit got thousands of small businesses to compete for a chance to win a Super Bowl commercial.

Running over several months, the first round of the contest drew one unexpected entrant that already had an ad ready to run. The National Organization to Reform Marijuana Laws was an early favourite in fan voting, but was controversially eliminated, resulting in weeks of free publicity for both it and Intuit.

Even the NFL is trying to stretch out viewer engagement, with its "Why do you love football?" contest. Fans were invited to spend months creating and submitting video answers to that question.

The Super Bowl broadcaster is also working to generate longer-term engagement, this time with its target audience of marketers. Fox's Social Bowl contest awards a pre-game spot — valued at $850,000 — to the best commercial submitted by a marketer, who can also come up with the $150,000 entry free. With numbers like that, Fox only needs six submissions to turn a profit.

But there's one ad that won't be appearing in the game, even if it did win a contest. When the company submitted its commercial, Fox turned down both the ad and the corresponding cash.

In so many ways, advertising during the Super Bowl is one gigantic contest. Major advertisers compete for the attention of viewers. Fans enter contests to demonstrate their ongoing passion for brands. Marketers of controversial products work the odds to wrangle some high-profile airtime. And there's even a football game.


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Mark Carney to Scotland: Keep the pound, lose some sovereignty

Bank of England governor Mark Carney today stepped into the thorny issue of Scottish independence, sounding a quiet, cautionary note during a speech before business leaders in Edinburgh over separatists' plans to keep using the British pound.  

Carney, the former Bank of Canada governor, said an independent Scotland that keeps the pound would have to give up some national sovereignty to avoid the kind of risks exposed by the euro zone crisis. 

He stressed that any talks between a breakaway Scotland and London would have to find a range of agreements to avoid "clear risks" that could threaten a currency union. These would include "tight fiscal rules" and a banking union.

"Those risks have been demonstrated clearly in the euro area over recent years, with sovereign debt crises, financial fragmentation and large divergences in economic performance," Carney said.

Scots will go to the polls on Sept. 18 for a referendum on whether Scotland should end its 306-year union with England. 

The ruling Scottish National Party last year unveiled details of its plans for independence, which include keeping the British pound, the Queen and remaining in the European Union. The SNP wants Scotland to have its own military and collect its own taxes. 

The push for independence has lagged in the polls, though there are recent indications the idea is making gains. The SNP has sought independence since it came into power in the Scottish Parliament in 2007. It was returned to power in 2011 with its first majority government. 

The British government recently pledged to assume all U.K. government debt in the event Scotland votes for independence, though it said an independent Scotland would still need to pay its "fair and proportionate share" of the U.K.'s outstanding stock of debt. 

Carney said the Bank of England is staying out the political issues of Scottish independence. 

"We're looking at this from a technical perspective, from an economic perspective. We're not passing judgment on these issues," he told the crowd. 

He listed the benefits and potential pitfalls for countries that share the same currency, including the "potentially large costs" of giving up an independent monetary policy and a flexible exchange rate.

He noted the deep economic integration between Scotland and the rest of the United Kingdom, which buys 70 per cent of Scottish exports.

"A word of caution applies here," he said. "The high degree of integration between Scotland and the rest of the U.K. may in part depend on their being part of the same sovereign nation."

Earlier, Carney met with Scotland's first minister and leader of the independence campaign, Alex Salmond. 


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Stranded ships on Great Lakes create icebreaking logjam

Several freighters are stuck in ice on the Great Lakes.

The list of frozen freighters in just the Lake St. Clair and Detroit River region stands at six.

Lara Barrett, the commanding officer on the Canadian Cost Guard's icebreaker Griffon, said the the vessel's crew of 28 is running day and night, from Windsor, Ont., to Quebec City.

"There's been lots of requests for icebreaker assistance from ourselves and the American Coast Guard," Barrett said. "There's been some vessels stuck in the ice. They're unable to move any longer."

Barrett said the icebreaker has been working all month. The hardest-hit region has been the western basin of Lake Erie, where ice is jamming up.

The Griffon has been breaking ice in front of ships and escorting them out of the lakes, up toward the St. Lawrence River.

Doug Ireland, captain of the cargo ship Algoway, and his crew were stuck in ice Toledo, Ohio, for nearly three days.

They were freed by a U.S. Coast Guard icebreaker Tuesday morning.

"This has been going on since December all the way down from the St. Lawrence," Ireland said late Tuesday from a dock in Windsor. "It's as bad as I can ever remember. It's not going to get much better the next day and a half, either."

The Great Lakes are under the largest cover of ice in 20 years.

Ice Cover Great Lakes

The Great Lakes are experience their biggest ice coverage in decades. (Courtesy National Oceanic and Atmospheric Administration)

The last time the lakes had this much ice cover this early in the year was during the 1993-94 winter season. Lake Erie, while the southernmost lake, is also shallowest of the lakes. It is virtually locked in ice, with 95 per cent coverage.

Ireland got stuck twice between Toledo and Windsor. He needed coast guard assistance the first time and freed himself the second time.

"We backed up. We don't like to do that too much. We're putting the business end of the ship – the stern – back into the ice," Ireland said.

The thickness of the ice varies. "Brash ice" is a little slushier and approximately 35 centimetres deep.

'It's more like running into glue than ... a hard iceberg.'- Doug Ireland, Algoway captain

"It's more like running into glue than running into a hard iceberg. It's not a sudden stop, it's gradual. It just gets slower and slower," Ireland said. "And we have 6,500 horsepower behind us.

"Wind rows" of ice are solid and run about a metre deep.

"It's almost unmanageable when it gets like that," Ireland said.

Ireland said it takes a strong icebreaker and skilled crew to cut through ice a metre deep.

The Griffon spent Tuesday night docked at Dieppe Gardens in Windsor on the Detroit River. On Wednesday morning, the crew changed and sailed off to Sarnia, Ont.

That's also where Ireland and his crew are headed after one last of salt, picked up in Windsor. It's the last run of the season for the Algoway.

Cargo shipments on the Great Lakes and St. Lawrence Seaway generate $34.6 billion in economic activity in Canada and the U.S. every year.

Meanwhile, residents of Boblo Island on the Detroit River, between Amherstburg, Ont., and Detroit, have no ferry service.

An icebreaker freed the frozen Boblo Island Ferry on Monday night, but in temperatures that dipped below –22 C, the river has already iced over again. I will likely be another week before the ferry is free again.

The ferry company has been using airboats or fanboats to bring the private island's 70 residents to and from the mainland.


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BMO confirms $1.3B bid for F&C Asset Management

Written By Unknown on Selasa, 28 Januari 2014 | 22.40

Bank of Montreal has confirmed it's offering to buy U.K.-based F&C Asset Management PLC in a cash deal valued at $1.3 billion, a move that will diversify and grow BMO's wealth management arm.

The friendly deal is being supported by the U.K. company's board but will require shareholder and other approvals. The companies expect the deal to close after May 1.

"The acquisition demonstrates BMO's deep commitment to the asset management business," said Bill Downe, chief executive officer of BMO Financial Group.

"With an established pedigree in fixed income investment and broad equity and property capabilities across its European platform, F&C advances BMO's capabilities by adding scope and scale to our well-established portfolio of wealth management businesses."

F&C Asset Management PLC revealed on Monday that it was in advanced discussions with the Canadian bank. They announced the deal Tuesday, before North American markets opened.

Bank of Montreal is offering 120 British pence, or about $2.21 at current exchange rates, for each share of F&C — about 28 per cent above the stock's closing price last Friday.

"F&C's board of directors believes the offer represents an attractive valuation for F&C shareholders and a positive outcome for employees and clients," said Kieran Poynter, chairman of F&C, in a joint statement with BMO.

Bank of Montreal says it expects "modest" cost savings from the acquisition.

"We look forward to welcoming F&C clients and employees to the BMO Global Asset Management family," said Barry McInerney, co-CEO of BMO Global Asset Management.

Once combined, BMO Global Asset Management and F&C would have US$269 billion of assets under management.


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Ford beats profit forecasts for 4Q, 2013

Ford Motor Co. beat Wall Street's forecasts for fourth-quarter and full-year profits thanks to strong performances in North America and Asia.

The Dearborn, Mich.-based automaker earned $3 billion US, or 74 cents per share, in the final quarter of 2013, but that was largely because of a one-time tax gain. Excluding the gain, net income was 31 cents per share, topping analysts' forecast of 27 cents, according to FactSet.

Fourth-quarter revenue rose 3.5 per cent to $37.6 billion. Ford shares were up 60 cents, or nearly 4 per cent, to $16.31 in premarket trading.

For the full year, Ford earned $7.2 billion, or $1.76 per share. Without one-time items, including a pension buyout, the company earned $8.56 billion, or $1.62 per share, beating analysts' forecasts.

Full-year revenue rose 10 per cent to $146.9 billion.

Because of Ford's strong annual profit, Ford's 47,000 hourly workers will get about $8,800 each in profit sharing payments on March 13, the company said.

For the full year, Ford posted record profits in North America and its Asia Pacific Africa unit. The company said it broke even in South America, and its loss was lower in Europe than last year.

The company repeated its outlook for 2014, saying that it expects pretax profits to be between $7 billion and $8 billion. That's lower than last year, when it made $8.6 billion before taxes. Ford expects revenue from selling cars to be about the same as 2013, but warned that its operating margin and cash flow will be lower.

Ford's market share grew in every region except Europe last year. Its sales jumped 49 per cent to more than 935,000 in China thanks to new vehicles like the EcoSport and Kuga SUVs. In the U.S., sales rose 11.7 per cent on strong demand for the F-Series pickup. Ford was the only major automaker to see double-digit U.S. sales gains. 07:38ET 28-01-14


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Neil Macdonald: Where was my currency discount when the loonie was strong?

Having lived for so long in the savagely competitive American marketplace, I'm always amazed when I return to Canada at how some of my more bovine fellow citizens are willing to rationalize being milked.

Whenever the discussion drifts to how just about everything in Canada costs more than it does across the nearby American border, some trusting soul pipes up with something like: "Well, that's just the price we pay for our health-care system."

Or: "If that's what it costs to have a more caring society, then I'm willing to pay it."

Even a few years ago, when the loonie was powerful and rising, you'd hear nonsense like that.

For some reason, Canadians tend to conflate the higher taxes we pay, which do go toward financing social programs like health care, and the higher prices we pay, which simply go into some greedy company's bank account.

If you had the gall, as I did after the loonie shot well past the U.S. dollar in 2007, to call one of those companies — say, a clothing retailer, or a big car company like Honda — and ask why Canadian prices were so slow to drop, you'd run into a trained shill who'd rattle off practiced talking points.

Such as: "We still have a lot of inventory in the system that we paid for when the Canadian dollar was weaker."

Or: "We discounted for many years when the Canadian dollar was weaker, so it's only fair that we'd want to recoup some of those losses now."

Well, now that the loonie is down and dropping fast, this "price stickiness" is vanishing. Suddenly, the market is a picture of flow-through efficiency.

Canada's travel industry is now deploying the wonderfully self-referential euphemism "currency surcharge" to cover itself from the falling dollar.

Air Canada, always brilliant at using its market position to maximize profits, is tacking the "surcharge" onto its vacation packages for those trying to escape winter. Other tour operators are doing the same.

It's a way to jack up prices without explicitly admitting it. And you can bet corporate directives are being issued at Canadian retailers and manufacturers to pile on.

Where was the currency discount?

Fair enough, I suppose; businesses pretty much always pass on rising costs of production to consumers.

But I don't recall anyone inventing a "currency discount" back when the loonie was strong.

"It's pure greed," says Bruce Cran of the Consumers' Association of Canada, which monitors a basket of dozens of goods available in both the Canadian and American markets.

Cran says the prices of those goods did narrow somewhat over the years, but Canadians always paid at least 15 per cent more than Americans, even when the U.S. dollar was at its weakest.

A study by the Senate of Canada agreed, although it was unable to articulate any definitive reasons.

A common excuse, says Cran, is "It's the cost of shipping." That one, he says, was particularly rich coming from retailers of Canadian-made goods that sold for less all over the U.S.

Shoppers

Canadian retailers, who have been losing business to internet and cross-border shoppers, may do better if the lower loonie means consumers spend their money closer to home. That's provided that their suppliers don't want to be paid in the U.S. greenback. (Canadian Press)

The Acura MDX sport utility vehicle, manufactured in Ontario, is one example.

Another, says Cran, is Bombardier's snowmobiles, which it sold for up to 40 per cent less in North Dakota than neighbouring Manitoba, and "turned handsprings to prevent Canadians from crossing the border to purchase them."

Cran says Canadian retailers are not always greed-heads, and that sometimes they are dragged into price-fixing schemes against their wills.

He says he was once shown correspondence between a Canadian retailer and the U.S. firm that supplied it with jeans.

"The American company was tacking on 35 per cent because they thought they were entitled to it in Canada. The Canadian company was advised they would lose the franchise if they raised a problem."

Still, Cran suspects the real reason Canadians pay more is that in the end they're willing to: "Some people seem to regard it as some sort of patriotic gesture.

"As a consumer advocate, I find that very frustrating, but that is the thinking on the part of a surprising number of people.

"I've actually received hate calls, from Canadians, for pointing out the lower prices charged in the United States."

Bye-bye purchasing power

Now that Canada's already-high prices are on the rise, though, consumers who've endured years of erosion to their real incomes will have to either band together and get assertive, or strangle.

As Cran points out, "we've lost 10 per cent of our purchasing power. It's happened like lightning. People have to be prepared to do whatever they can to protect themselves."

The Consumers' Association suggests using the internet to find out what an item is selling for elsewhere in Canada and in the U.S., and then using that information to bargain.

At least be aware before making a spending decision, advises Cran.

What Canadian consumers really need to do is assert their collective power, which, even if the will were there, would be more difficult that it sounds.

Big retailers make a tonne of money by keeping the North American markets separate, and aim to keep it that way.

Also, ordinary Canadians can do very little about the international forces that determine what their dollar is worth.

It wasn't so long ago, 2002 in fact, that the Canadian dollar was only worth 62 cents American.

CANADA/

Bank of Canada governor Stephen Poloz seems to be in no hurry to raise interest rates, which would boost the dollar, any time soon. (Reuters)

I don't remember any credible prediction it would ever go that low, and I don't remember many macroeconomists predicting a loonie worth $1.10 US just five years later.

Some suspect Canada's central bank is promoting a weaker loonie, to boost Canadian exports — and the jobs that might come along with them. (There may be something to that. Lots of other central banks, America's included, have pursued the same goal with winks and nudges.)

But Canadian consumers can do something about being treated like a herd of cows by retailers. It just takes a little un-bovine anger.


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Google Glass prescription frames, shades are coming

Google Glass is getting glasses.

Google is adding prescription frames and new styles of detachable sunglasses to its computerized, internet-connected goggles known as Glass.

The move comes as Google Inc. prepares to make Glass available to the general population later this year. Currently, Glass is available only to the tens of thousands of people who are testing and creating apps for it.

Glass hasn't actually had glasses in its frame until now.

Glass is basically a small computer, with a camera and a display screen above the wearer's right eye. The device sits roughly at eyebrow level, higher than where eyeglasses would go.

hi-tech-google-glass-852

Google Glass is currently offered in five colours, but hasn't actually had glasses in its frame until now. Google Inc. will introduce four popular styles of prescription frames and two choices for sunglasses styles (Reuters)

It lets wearers surf the Web, ask for directions and take photos or videos. Akin to wearing a smartphone without having to hold it in your hands, Glass also lets people read their email, share photos on Twitter and Facebook, translate phrases while traveling or partake in video chats. Glass follows some basic voice commands, spoken after the worlds "OK, Glass."

4 styles of frames

The gadget itself is not changing with this announcement. Rather, Google plans to make various attachments available. Starting Tuesday, the Mountain View, Calif., company is offering four styles of prescription frames and two new types of shades available to its "explorers" — the people who are trying out Glass. The frames will cost $225 and the shades, $150. That's on top of the $1,500 price of Glass.

'We want as many people as possible to wear it'- Isabelle Olsson, lead designer for Google Glass

Users can take the frames to any vision care provider for prescription lenses, though Google says it is working with insurance provider Vision Service Plan to train eye-care providers around the U.S. on how to work with Glass. Google says some insurance plans may cover the cost of the frames.

Isabelle Olsson, the lead designer for Google Glass, says the new frames open the spectacles up to a larger audience.

She demonstrated the new frames to The Associated Press last week at the Google Glass Basecamp, an airy loft on the eighth floor of New York City's Chelsea Market. It's one of the places where Glass users go to pick up their wares and learn how to use them. Walking in, visitors are greeted, of course, by a receptionist wearing Google Glass.

"We want as many people as possible to wear it," she said.

To that end, Glass's designers picked four basic but distinct frame styles. On one end is a chunky "bold" style that stands out. On the other is a "thin" design — to blend in as much as possible.

'Lifestyle products'

Olsson said Google won't be able to compete with the thousands of styles offered at typical eyeglasses stores. Instead, Glass's designers looked at what types of glasses are most popular, what people wear the most and, importantly, what they look good in.

The latter has been a constant challenge for the nascent wearable technology industry, especially for something like Google Glass, designed to be worn on your face. When Google unveiled Glass in a video nearly two years ago, it drew unfavourable comparisons to Bluetooth headsets, the trademarks of the fashion-ignorant technophile.

In designing Google Glass, Olsson and her team focused on three design principles with the goal of creating something that people want to wear. These were lightness, simplicity and scalability. That last one means having different options available for different people — just as there are different styles of headphones, from in-ear buds to huge aviator-style monstrosities.

Google Glass currently comes in five colours — "charcoal," a lighter shade of grey called "shale," white, tangerine and bright blue "sky." The frame attachments out Tuesday are all titanium. Users can mix and match.

"People need to be able to choose," Olsson said. "These products need to be lifestyle products."


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Doubts about Apple escalate after disappointing Q1

It's going to take more than brisk sales of the iPhone and iPad to convince investors that Apple still has the magic touch.

Wall Street's nagging doubts about Apple's further growth prospects were magnified late Monday with the release of the company's results for a three-month period that encompassed the holiday shopping season.

Even though Apple sold more iPhones and iPads than in any previous quarter, the showing disappointed investors who were expecting even bigger things from the Cupertino, Calif., company.

The fiscal first-quarter numbers reinforced perceptions that Apple is now mostly selling its mobile devices to repeat customers who are upgrading to the next generation in the product line, instead of reeling in new converts to its technology. A similar problem also appears to be looming for Samsung Electronics, which competes fiercely against the iPhone.

"It looks like the high end of the smartphone market is becoming saturated," said Gartner analyst Van Baker.

If that is true, Apple figures to be hard pressed to lift its stock back to where it stood at its peak price of more than $700 in September 2012. That was before investors began to fret about fiercer competition in mobile devices and Apple's lack of a breakthrough product since the iPad came out nearly four years ago.

'Innovation is deeply embedded in everybody here.'- Apple CEO Tim Cook

Apple's management amplified those concerns with a revenue forecast of $43 billion for the current quarter ending in late March, falling about $3 billion below analysts' predictions.

The company's projection also raised the unsettling spectre of Apple's quarter revenue declining from the prior year for the first time in more than a decade. It last happened during the opening three months of 2003.

Apple's stock shed $44.50, or 8 per cent, to $506 in extended trading following the release of the earnings report.

Apple CEO Tim Cook sought to reassure investors during a Monday conference call. Without providing further specifics, he reiterated previous statements that Apple plans to plow new fields in technology.

"Innovation is deeply embedded in everybody here," Cook said, adding that "we have zero issue coming up with things we want to do that we think we can disrupt in a major way."

Analysts believe Apple will broaden its horizons this year by introducing an Internet-connected "smartwatch" to establish a toehold in the still-nascent market of wearable computing. Speculation about Apple making a television set that would run on the same software as the iPhone has been circulating for years.

Devices running on Google Inc.'s Android software have been siphoning sales from the iPhone because they usually cost less and many of them feature bigger screens than the iPhone's four-inch display. An iPhone with a display screen spanning nearly five inches is being prepared for sale later this year, according to unidentified people cited in a recent report in The Wall Street Journal.

Apple earned $13.07 billion, or $14.50 per share, in the quarter ending Dec. 28. That's roughly unchanged from $13.08 billion, or $13.81 per share, in the prior year.

Revenue for the fiscal first quarter rose 6 per cent to $57.6 billion.

Analysts, on average, had expected Apple to earn $14.09 per share on revenue of $57.5 billion, according to FactSet


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Cenovus CEO defends oilsands in wake of Neil Young crusade

Written By Unknown on Minggu, 26 Januari 2014 | 22.39

Cenovus CEO Brian Ferguson says Canadians should be angry about the way oilsands are being portrayed internationally as dirty oil.

In an interview with CBC's The Lang & O'Leary Exchange, Ferguson said Cenovus, a major investor in the oilsands, wants to "engage all Canadians" in a conversation about development of natural resources.

"One of the challenges that we've experienced here is that some of the special interest groups and celebrities have been making very sensational and outrageous statements that should really infuriate all Canadians," Ferguson said.

He was reacting to singer Neil Young's recent Canadian tour to raise money for aboriginal groups fighting oilsands development.

In this video interview, Ferguson claims that new technology and a focus on emissions has led to a 27 per cent drop in greenhouse gas emissions from Cenovus since 2004.

He also defends efforts to get pipelines built to get Canadian oil to market.

"We're in the very fortunate situation that global demand has been growing. What's really important today is that we develop the infrastructure today for all our natural resources, not just oil," he said.

 


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Cord-cutting: 16% of Canadians mull ditching paid TV

About 16 per cent of Canadians are thinking of cutting the cord on their cable or satellite TV service, according to a survey by Media Technology Monitor.

Anglophone Canadians in the survey are twice as dissatisfied as their French-speaking counterparts, with 17 per cent saying they are considering cancelling their paid TV subscription, compared to eight per cent of francophones.

The frustration Canadians expressed with paid TV service seems to run counter to what TV viewers are actually doing which is sign up for additional TV services, such as Netflix or online TV, while maintaining their cable service, according to a recent Deloitte survey.

Media Technology Monitor surveyed more than 4,000 18- to 34-year-old anglophone Canadians between October and December of 2013 to determine their media habits. The results of the survey are considered accurate within plus or minus 1.5 percentage points, 19 times out of 20.

The study found that Generation X viewers (those aged 34-47) and visible minority viewers were most likely to want to cut the cord.

In a consumer-friendly throne speech last year, the federal Conservatives signalled they wanted to make it easier for Canadians to love their cable or satellite subscription service by legislating more flexible TV packages so they could opt for what they want.

About 42 per cent of respondents said they had watched TV online in the past month, up 10 per cent from last year and nearly double the number in 2008. A third said they chose internet TV because it was convenient, though 19 per cent said they were catching up on a show they'd missed.

The survey also asked about binge-viewing habits and found half of Canadians admitted to watching at least three episodes of TV shows in a single sitting within the past year. About 64 per cent of anglophones under age 35 had done some binge-watching.

About 27 per cent said they had watched on a PVR and the same number on Netflix, but marathons of scheduled TV were still popular with 34 per cent of respondents.

Video watching on a smartphone took a sharp jump upward, with 30 per cent of smartphone users saying they had watched on their device, a reflection of improving smartphone technology.


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Toronto stocks down 1.5% amid global market sell-off

Stock markets remained volatile today in reaction to sharp drops in the values of currencies in several emerging markets including Turkey, Russia, South Africa and Argentina.

The TSX/S&P index took a 230-point plunge Friday morning as the dollar continued to underperform and prospects for China, a major buyer of Canadian commodities, looked weaker. By the close of trading, the Toronto market was down 1.5 per cent or 215 points to 13,717.

The Canadian dollar was ahead 0.21 of a cent to 90.31 cents US.

National Bank issued a profit outlook for Toronto-listed companies on Friday that indicates disappointments ahead as earnings season begins. With 15 companies still to report in January, 136 in February and 83 in March, the bank estimates aggregate net income for the fourth quarter will decline by 1.7 per cent.

In New York, the Dow dove by 318 points or two per cent to 15,879 at the end of the day on top of a drop of 176 points Thursday.

The Nasdaq was 90.7 points lower to 4,128.17 while the S&P 500 index was down 38.17 points to 1,790.29.

There has been a rush out of emerging currencies around the world toward the U.S. dollar after the Federal Reserve decided to reduce its monthly bond-buying program to $75 billion.

The Fed stimulus has been blamed for the 2013 stock market rally that boosted the Dow by 29 per cent on the year. But as the Fed tapers, U.S. bond yields have risen and investors are taking their money out of emerging markets.

"Pressure in the more vulnerable emerging market capital markets continues and has attracted significant global attention driving risk aversion higher on fears of possible contagion outside of the epicentres," observed Camilla Sutton, Chief FX Strategist, Managing Director Scotiabank Global Banking and Markets.

"Argentina, Turkey and South Africa are under tremendous pressure which has yet to ease."

Investors have begun a full flight from emerging markets, preferring to buy U.S. Treasuries, the yen and gold, which bounced higher Friday to $1,262 US an ounce.

Michael Purves, chief global strategist and head of equity derivatives research at Weeden, expects a lot of market volatility in the days ahead.

The current downturn "could be an excuse for traders to simply sell a market which has long term overbought conditions and still working through a consolidation in January after an incredibly strong year," he wrote in a research note.

Still, he expects inflows to U.S. markets at the expense of emerging markets to continue, noting that markets with political uncertainty are being especially hard hit.

The Turkish lira hit a record low of 2.33 to the U.S. dollar, even after the central bank spent at least $2 billion trying to prop it up on Thursday. Turkey's national debt is worrying investors.

Argentina moved Friday to relax restrictions on the purchase of U.S. dollars that were imposed in 2012, following a sharp slide in the peso.

Argentina is plagued by high inflation and a number of market restrictions that have kept it from issued bonds internationally for several years.

There is also uneasiness among investors about violence in Ukraine and yesterday's report about slower growth in China, which has been fuelling emerging world economic activity.

The U.K.'s FTSE 100 index and markets in Europe and Japan moved sharply lower on Friday amid the global stock-market sell-off.

"We expect the emerging market sell-off to get worse before it starts getting better," said Lorne Baring, managing director of B Capital Wealth Management in Geneva.

"There's definitely contagion spreading and it's crossing over from emerging to developed in terms of sentiment."

A report from TD Economics noted the lack of U.S. economic data to sway markets this week, but says next week all eyes will be directed toward the Fed, with an expectation of further tapering.

"Investor attention will return to America next week. Financial markets are looking for guidance on whether the Fed will again reduce the pace of asset purchases as they did in December. We expect another $10 billion US reduction in asset purchases, bringing the monthly total to $65 billion," the report said.


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Jamie Dimon paid $20M after JPMorgan pays $20B in fines

The CEO of JPMorgan saw his pay packet almost doubled in 2013 to $20 million US last year, despite steering the bank through a year in which it paid almost $20 billion in regulatory fines.

JPMorgan revealed in a filing Friday that CEO Jamie Dimon was paid a base salary of $1.5 million but was also granted $18.5 million in stocks that will vest over the next three years.

The $20 million total is closer to his usual pay packet, after the board voted to strip his compensation by almost half to $11.5 million for 2012.

Dimon stickhandled the bank through a rocky 2013 that saw it pay out more than $1 billion in fines related to mortgage foreclosures, $400 million for improper activities in the energy markets of several states, almost $1 billion related to the "London Whale" scandal and $13 billion related to mortgage lending activities during the financial crisis at banks it now owns.

In total, the bank set aside almost $23 billion to settle various regulatory and legal actions against it last year, the bank said in a filing recently.

Amid all that, JPMorgan shares gained more than 26 per cent on the NYSE under Dimon's watch through 2013.

"Mr. Dimon's total annual compensation for 2013 was $20 million, compared to $11.5 million for 2012, $23 million for 2011 and 2010 and $15.2 million for 2009," the bank said. "For 2008, Mr. Dimon received no incentive compensation."

JPMorgan's Wall Street rivals have yet to disclose their executive compensation.


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U.S. study warns of risks and unknowns in shipment of Alberta oilsands products

​​U.S. scientists are warning that there are environmental risks, regulatory holes and serious unknowns regarding the shipment of Alberta oilsands products by pipeline, rail and tanker.

The findings are in a 153-page report from last September by the emergency response division of the U.S. National Oceanic and Atmospheric Administration. The unit has expertise in preparing for, evaluating and responding to oil and chemical spills in coastal environments.

Enbridge, the company behind the proposed Northern Gateway pipeline to the British Columbia coast, counters that most of the concerns raised in the report are out-of-date, overstated or being resolved.

The study examined the different ways to transport Alberta's bitumen, a molasses-like crude oil, over U.S. land and water. Those included rail, the proposed Kinder-Morgan Trans Mountain pipeline to Vancouver, the Keystone XL line to Texas from Alberta, and Northern Gateway.

"Most oilsands products are transported to market via existing and proposed pipelines; however, a sharp increase in the use of rail and marine transport can be expected while new pipelines are constructed to match the increased production of oilsands products," the report says.

It was written by six experts at the University of Washington and supervised by Prof. Robert Pavia of the university's School of Marine and Environmental Affairs.

"While there are many arguments about the level of risk, no one believes the risk is zero," Pavia told The Canadian Press, adding that he was speaking personally. "In my mind it's not a question of whether a spill will occur, but how well-prepared we are for a spill once it does occur."

In the case of Northern Gateway, not only might there be potential to harm Washington state shores, there could be hazards from tankers leaving Kitimat, B.C., to travel through the waters of Alaska, near the Aleutian Islands to Asia. The proposed 1,177-kilometre-long pipeline would carry 525,000 barrels of bitumen daily from Alberta to the northern B.C. port.

Both Canada and the United States need to renew and expand efforts to reduce any risks, Pavia said.

Last December, a federal joint review panel supported the project — providing Enbridge meets 209 conditions. The final decision rests with the federal cabinet.

The U.S. report notes there are information gaps about the transport of bitumen.

"Little research is currently available regarding the behaviour of oilsands products spilled into water, and how they weather in the environment," the report says.

Oilsands tarsand 2008

A truck carries a full load at the Shell Albian Sands oilsands mine near Fort McMurray, Alberta. (Jeff McIntosh/Canadian Press)

"Most tests have been conducted in the laboratory, so predicting the actual behaviour of oilsands products for a range of spills is difficult." The risks associated with carrying oilsands products over water "are not well-defined."

The study does point out that only a handful of spills have occurred in the U.S. and Canada.

Enbridge communications manager Ivan Giesbrecht said that's a positive thing.

"This further supports that these products do not pose increased risk for transmission pipeline corrosion," he said in an interview.

In 2007, a neighbourhood in Burnaby, B.C., was covered in synthetic crude when excavation equipment ruptured a pipeline. In 2010, a pipeline leaked 20,000 barrels of oil into the Kalamazoo River in Michigan.

Last September's report also points out that anyone responding to an oilsands spill could face both oil that is light and floating or heavier oil that could sink.

"This could impact fish and birds that move between water and air, such as those that may inhale toxic fumes, or become coated by oil. Sinking oil could move into the water column and harm fish larvae.

"Current capabilities to detect and recover oil when it sinks or is suspended in the water column are poor."

Giesbrecht said each spill is unique and depends on where and when it occurs. He said it is also "an incorrect assumption," one not supported by studies or observations, that diluted bitumen in water would split into two portions of floating and sinking oil.

A Canadian government study released earlier this month shows that diluted bitumen does sink in salt water when battered by waves and mixed with sediment. If the bitumen is free of sediment, the crude floats even after evaporation and exposure to light.

The U.S. study says research is needed into the public health impacts of oilspills, weathering effects and biodegradation, and there should be more testing with a wider variety of oilsands products.

Giesbrecht said that Enbridge plans to join, with government and industry, a committee of technical experts to research spill behaviour and response. He also said the industry has already started to conduct such research.

Giesbrecht said Enbridge doesn't agree with the findings of the U.S. study. He said the company is committed to applying industry best practices and to developing leak-detection technologies.

The report also noted "regulator shortcomings," including that oilsands products aren't subject to the U.S. excise tax that provides funds for spill cleanup, and that there was scant product information provided by the facilities that transport the oil they're handling.

"There are additional gaps in policies and regulations that warrant scrutiny as transport of oilsands products and other unconventional oils increases," the report said.

Federal and state railway regulators have played a minor role in oil spill planning, but given recent high-profile accidents, like the deadly crash and explosion in Lac-Megantic, Que., the report suggests more regulatory oversight over rail transport should be considered.


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Cord-cutting: 16% of Canadians mull ditching paid TV

Written By Unknown on Sabtu, 25 Januari 2014 | 22.40

About 16 per cent of Canadians are thinking of cutting the cord on their cable or satellite TV service, according to a survey by Media Technology Monitor.

Anglophone Canadians in the survey are twice as dissatisfied as their French-speaking counterparts, with 17 per cent saying they are considering cancelling their paid TV subscription, compared to eight per cent of francophones.

The frustration Canadians expressed with paid TV service seems to run counter to what TV viewers are actually doing which is sign up for additional TV services, such as Netflix or online TV, while maintaining their cable service, according to a recent Deloitte survey.

Media Technology Monitor surveyed more than 4,000 18- to 34-year-old anglophone Canadians between October and December of 2013 to determine their media habits. The results of the survey are considered accurate within plus or minus 1.5 percentage points, 19 times out of 20.

The study found that Generation X viewers (those aged 34-47) and visible minority viewers were most likely to want to cut the cord.

In a consumer-friendly throne speech last year, the federal Conservatives signalled they wanted to make it easier for Canadians to love their cable or satellite subscription service by legislating more flexible TV packages so they could opt for what they want.

About 42 per cent of respondents said they had watched TV online in the past month, up 10 per cent from last year and nearly double the number in 2008. A third said they chose internet TV because it was convenient, though 19 per cent said they were catching up on a show they'd missed.

The survey also asked about binge-viewing habits and found half of Canadians admitted to watching at least three episodes of TV shows in a single sitting within the past year. About 64 per cent of anglophones under age 35 had done some binge-watching.

About 27 per cent said they had watched on a PVR and the same number on Netflix, but marathons of scheduled TV were still popular with 34 per cent of respondents.

Video watching on a smartphone took a sharp jump upward, with 30 per cent of smartphone users saying they had watched on their device, a reflection of improving smartphone technology.


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Toronto stocks down 1.5% amid global market sell-off

Stock markets remained volatile today in reaction to sharp drops in the values of currencies in several emerging markets including Turkey, Russia, South Africa and Argentina.

The TSX/S&P index took a 230-point plunge Friday morning as the dollar continued to underperform and prospects for China, a major buyer of Canadian commodities, looked weaker. By the close of trading, the Toronto market was down 1.5 per cent or 215 points to 13,717.

The Canadian dollar was ahead 0.21 of a cent to 90.31 cents US.

National Bank issued a profit outlook for Toronto-listed companies on Friday that indicates disappointments ahead as earnings season begins. With 15 companies still to report in January, 136 in February and 83 in March, the bank estimates aggregate net income for the fourth quarter will decline by 1.7 per cent.

In New York, the Dow dove by 318 points or two per cent to 15,879 at the end of the day on top of a drop of 176 points Thursday.

The Nasdaq was 90.7 points lower to 4,128.17 while the S&P 500 index was down 38.17 points to 1,790.29.

There has been a rush out of emerging currencies around the world toward the U.S. dollar after the Federal Reserve decided to reduce its monthly bond-buying program to $75 billion.

The Fed stimulus has been blamed for the 2013 stock market rally that boosted the Dow by 29 per cent on the year. But as the Fed tapers, U.S. bond yields have risen and investors are taking their money out of emerging markets.

"Pressure in the more vulnerable emerging market capital markets continues and has attracted significant global attention driving risk aversion higher on fears of possible contagion outside of the epicentres," observed Camilla Sutton, Chief FX Strategist, Managing Director Scotiabank Global Banking and Markets.

"Argentina, Turkey and South Africa are under tremendous pressure which has yet to ease."

Investors have begun a full flight from emerging markets, preferring to buy U.S. Treasuries, the yen and gold, which bounced higher Friday to $1,262 US an ounce.

Michael Purves, chief global strategist and head of equity derivatives research at Weeden, expects a lot of market volatility in the days ahead.

The current downturn "could be an excuse for traders to simply sell a market which has long term overbought conditions and still working through a consolidation in January after an incredibly strong year," he wrote in a research note.

Still, he expects inflows to U.S. markets at the expense of emerging markets to continue, noting that markets with political uncertainty are being especially hard hit.

The Turkish lira hit a record low of 2.33 to the U.S. dollar, even after the central bank spent at least $2 billion trying to prop it up on Thursday. Turkey's national debt is worrying investors.

Argentina moved Friday to relax restrictions on the purchase of U.S. dollars that were imposed in 2012, following a sharp slide in the peso.

Argentina is plagued by high inflation and a number of market restrictions that have kept it from issued bonds internationally for several years.

There is also uneasiness among investors about violence in Ukraine and yesterday's report about slower growth in China, which has been fuelling emerging world economic activity.

The U.K.'s FTSE 100 index and markets in Europe and Japan moved sharply lower on Friday amid the global stock-market sell-off.

"We expect the emerging market sell-off to get worse before it starts getting better," said Lorne Baring, managing director of B Capital Wealth Management in Geneva.

"There's definitely contagion spreading and it's crossing over from emerging to developed in terms of sentiment."

A report from TD Economics noted the lack of U.S. economic data to sway markets this week, but says next week all eyes will be directed toward the Fed, with an expectation of further tapering.

"Investor attention will return to America next week. Financial markets are looking for guidance on whether the Fed will again reduce the pace of asset purchases as they did in December. We expect another $10 billion US reduction in asset purchases, bringing the monthly total to $65 billion," the report said.


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Jamie Dimon paid $20M after JPMorgan pays $20B in fines

The CEO of JPMorgan saw his pay packet almost doubled in 2013 to $20 million US last year, despite steering the bank through a year in which it paid almost $20 billion in regulatory fines.

JPMorgan revealed in a filing Friday that CEO Jamie Dimon was paid a base salary of $1.5 million but was also granted $18.5 million in stocks that will vest over the next three years.

The $20 million total is closer to his usual pay packet, after the board voted to strip his compensation by almost half to $11.5 million for 2012.

Dimon stickhandled the bank through a rocky 2013 that saw it pay out more than $1 billion in fines related to mortgage foreclosures, $400 million for improper activities in the energy markets of several states, almost $1 billion related to the "London Whale" scandal and $13 billion related to mortgage lending activities during the financial crisis at banks it now owns.

In total, the bank set aside almost $23 billion to settle various regulatory and legal actions against it last year, the bank said in a filing recently.

Amid all that, JPMorgan shares gained more than 26 per cent on the NYSE under Dimon's watch through 2013.

"Mr. Dimon's total annual compensation for 2013 was $20 million, compared to $11.5 million for 2012, $23 million for 2011 and 2010 and $15.2 million for 2009," the bank said. "For 2008, Mr. Dimon received no incentive compensation."

JPMorgan's Wall Street rivals have yet to disclose their executive compensation.


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