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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Island airport seeks federal money for improvements

CBC News Posted: Jan 24, 2014 10:57 AM ET Last Updated: Jan 24, 2014 10:57 AM ET

Toronto's Port Authority is seeking up to $100 million in federal money to pay for infrastructure improvements at the Billy Bishop Toronto City Airport.

The port authority has presented a preliminary estimate for improvements related to airport access and related vehicle traffic to the federal Building Canada Fund, on behalf of the City of Toronto.

Although the TPA is a self-funding federal agency its chairman, Mark McQueen, says its financial resources can't cover the cost of a proposed runway extension and normal spending requirements.

The runway extension is part of a controversial proposal from Porter Airlines.  The company wants to begin using Bombardier CSeries jets at the airport.

The port authority says it's been asked by city staff to attend a public meeting on Monday as part of a series of public consultations on Porter's request.

With files from The Canadian Press

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Toronto stocks down 230 points 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. At mid-afternoon, the Toronto market was down 1.3 per cent to 13,746.

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 207 points to 15,989 by mid-afternoon on top of a drop of close to 200 points Thursday.

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.

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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Target offers free credit monitoring to say sorry for hack

Target is apologizing to its Canadian customers for a high-profile security breach at U.S. stores by offering a year of free credit monitoring at its expense.

"Because we value you as a guest and your trust is important to us, Target is offering you one year of free credit monitoring through the Equifax Complete Advantage Plan," Target told some of its Canadian customers in an email Friday.

Before the Christmas holiday, the retailer revealed that the names, email addresses, mailing addresses and some payment information for as many as 70 million customers may have been stolen in a sophisticated computer hack.

Well under 1 per cent of the customers affected were Canadian, Target says.

The company has been scrambling ever since to assure its customers that its networks are safe and secure.

The credit monitoring offer is the latest part of that plan. 

"Target is reaching out to Canadians who may have been impacted to provide them with a promotional code that they need to enter when they sign up for the one year of free credit monitoring," Target spokesperson Lisa Gibson said. 

Target is telling its customers to go to Equifax's website and enter a code, which they provided in the email, in the promotional field. That type of monitoring service from Equifax normally costs $14.95 a month.

In addition to providing updates on your credit score, the Equifax service will also alert you to any changes to your file, such as an unauthorized attempt to open new credit accounts in your name without your knowledge.

Anyone wishing to take advantage must sign up by April 30, Target said.

"We are truly sorry this incident occurred and sincerely regret any inconvenience it may cause you," the email reads.

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CN Rail gets $25M from N.B. to keep northern freight line

The New Brunswick government will provide $25 million to Canadian National Railway to upgrade its rail line and keep freight service in northern New Brunswick.

The money will be used to improve the rail infrastructure. In return, CN agrees to spend a comparable amount to maintain and operate the line and continue rail freight service for a 15-year period on the northern and southern sections of the line.

Map shows the two sections of the Newcastle subdivision line that will continue operating. (Marc Genuist / CBC)

However, a 70-kilometre section of the Newcastle subdivision between Nelson Junction and Nepisquit Junction is not included in the agreement "due to the significant investments required to maintain the line and the lack of both originating and terminating freight traffic on that section," the government stated in a new release.

CN will seek to discontinue rail operations on that section, which means there will not be a direct connection on the line between the Bathurst and Moncton areas.

The government money will be used to improve the sections of the subdivision between Irvco and Nepisquit Junction in the north and between Catamount and Nelson Junction in the south. There are active freight customers on both those sections of the subdivision.

Work on the rail line improvements is to begin this spring.

"Freight rail is a critical mode of transportation for industries in northern New Brunswick, and it is a vital lifeline for the jobs and communities that rely on those industries," said Premier David Alward at a news conference in Miramichi on Friday morning.

"Our investment in the rehabilitation of two sections of railway line ensures companies in northern New Brunswick can continue to ship their goods to market efficiently and explore new opportunities for growth."

Premier David Alward made the CN funding announcement in Miramichi on Friday. (Marc Genuist/CBC)

​In August 2012, CN announced it needed $50 million from government and other partners to upgrade the line, or it would discontinue part of the Newcastle Subdivision service by March 2014.

"We thank the provincial government for working with us over the last year to develop this agreement that will preserve rail freight service in northern New Brunswick," said Sean Finn, CN's executive vice-president for corporate affairs.

"This agreement would not have been possible without the commitment of both parties to continuing investments and to the growth of rail freight traffic in the region."

The company had said it was incurring annual losses due to declining traffic volumes and infrastructure costs on the line. The 224-kilometre Newcastle Subdivision runs from Catamount, just west of Moncton, to Irvco, which is about 32 kilometres west of Bathurst.

Before the section of line between Nelson Junction and Nepisquit Junction can be discontinued, it will be offered for sale in early February to private interests, and then municipal, provincial and federal levels of government. There will be a five-month window for offers to purchase the middle section.

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Loonie sinks below 90 cents US

The Canadian dollar continued its recent slide, trading Thursday below 90 cents US, its lowest level since July 2009.

The loonie traded as low as 89.50 overnight as foreign investors reacted to developments in Canada on Wednesday. 

The Bank of Canada issued a very dovish policy statement in which it opted to keep interest rates where they are. Economists also interpreted the statement that accompanied that decision as a sign the bank is leaning toward lowering rates, not raising them, if and when it chooses to act.

'We'll probably see the Canadian dollar get down to 85 cents.'- Andrew Pyle

By mid-morning Thursday, the loonie had regained some ground, rising to 89.96 cents US. The loonie hasn't been as low as 89.50 since well before the recession that began in late 2008.

"I expect it to go lower," Scotiabank portfolio adviser Andrew Pyle told CBC on Wednesday, "We'll probably see the Canadian dollar get down to 85 cents against the U.S. dollar and that probably means we're not going to get any rate cuts in Canada."

The loonie has already lost more than four cents compared to the U.S. dollar in January.

That's welcome news to the manufacturing sector and other exporters because it makes Canadian goods cheaper for other countries to buy, which encourages sales. 

But any Canadian citizens or businesses who have to pay for anything priced in U.S. dollars likely isn't welcoming the notion of a loonie priced well below its U.S counterpart.

"[If] you're an exporter of manufactured goods, you like that notion," Royal Bank's currency strategist, Mark Chandler, told CBC News. "[But] if you're planning a holiday in Florida or somewhere in the U.S., you don't like that notion."

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Bankrupt Detroit may get Michigan bailout

Michigan Gov. Rick Snyder will announce a plan on Wednesday to commit state money to help shore up debt-ridden Detroit's pension funds and prevent valuable city-owned art from being sold during the city's bankruptcy.

Details have not been released, but the Republican governor scheduled an afternoon news conference with GOP legislative leaders in Lansing to get behind a proposal that would need approval from the Republican-led Legislature.

Snyder privately gauged support among lawmakers last week for a state commitment of roughly $350 million over 20 years. That would match more than $330 million in commitments so far from national and local foundations to bolster pension plans and block the potential sale of valuable pieces at the Detroit Institute of Arts.

$3.5 billion pension shortfall

However, Detroit's debt — estimated at $18 billion or more — includes underfunded pension obligations of $3.5 billion and $5.7 billion for retiree health coverage. Snyder hasn't talked much publicly about any potential state aid to the insolvent city, partly because discussions between the city and its creditors with federal mediators are private.

Republican Senate Majority Leader Randy Richardville said he likes the proposal but cautioned that the full Senate is not yet on board. Richardville, who is from Monroe in the southeast corner of Michigan, said it would not be a "bailout of Detroit at all," but would rather help retirees who now live across the state.

"It does a lot to help people out, and I think it's worthy of consideration," said Richardville, who planned to attend Snyder's announcement with Republican House Speaker Jase Bolger.

Snyder was expected to meet behind closed doors with all Senate Republicans before his news conference on Wednesday; he met with their leadership last week.

Other options

Detroit's state-appointed emergency manager, Kevyn Orr, has said two pension funds are underfunded by $3.5 billion. A deal involving the state and charitable foundations would help retirees but probably would not cover all of their pensions.

Richardville declined to say if state aid also could be used to help with retirees' health care costs. He gave no timetable for potential legislative action, but said it would be "sooner rather than later."

"These are people that have earned a pension, have earned health care, and we're going to do what we can to help them out," Richardville said.

Plan faces opposition

It is politically tricky terrain. Some legislators are worried that state financial assistance to Detroit could set a precedent if other cities collapse, while others note that they have their own spending priorities elsewhere in the state. Election-year politicking also could come into play.

"It's going to be difficult because people around here count dollars very tightly," said Sen. Bert Johnson, a Democrat who represents part of Detroit. "Some very viable programs have been cut over the past three years."

Johnson said he wants to see specifics on how pensioners would be helped. He also wants assurances that control of pensions is vested with the city; Republicans have talked about outside oversight of what critics says are mismanaged funds.

"If this can be a major component of solving the bankruptcy and workers end up in a good position and the city of Detroit can walk away with a clean slate, it's something we have a responsibility to look at," Johnson said.

Mediators between the city and its creditors said in a statement that they hope Snyder's announcement will help the parties reach as many agreements as possible that can be included in a plan to take Detroit out of bankruptcy.

"The mediators acknowledge that the question of state participation will now move to the legislative process, and urge that all parties approach the issue with an open mind," they said.

Orr wanted to present a proposal this month to take Detroit out of bankruptcy, but the timeframe has shifted to February.

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BlackBerry stock jumps 9% on news it's selling real estate

BlackBerry shares jumped nine per cent on Wednesday to close at $11.86, a day after the Waterloo, Ont., smartphone company said it would sell most of its Canadian real estate holdings.

The move was interpreted by investors as a positive development, with cash raised from its considerable assets available to finance the company's turnaround under the leadership of new CEO John Chen.

The stock hit a low of $6.04 in late November, but has been rising ever since and is up 54 per cent since the beginning of the year.

BlackBerry is unlikely to shift its headquarters from Waterloo, despite a move to sell off the majority of its Canadian commercial real estate holdings, said one analyst.

"It would not be possible for John [Chen] to move the entire company out of Waterloo, based on our work. To replicate the type of talent that he has at his disposal in Waterloo, would at least triple his cost base, potentially more, for the same level of engineering quality," said Peter Misek, the managing director of technology research at investment firm Jefferies.

"So it would be a bad move from an operating expense perspective," he said in a interview with Craig Norris on The Morning Edition Wednesday.

BlackBerry announced Tuesday it was putting over three million square feet of commercial real estate up for sale, with just over 78 per cent of that located in Waterloo Region. Included are holdings at the Northfield Campus and University Campus in Waterloo, Cambridge Campus, Mississauga Airport Corporate Centre Campus and Ottawa campus.

The smartphone maker plans to use a combination of vacant sales and sale-leaseback arrangements in divesting the properties.

It's a move that, according to Misek, is meant to instill confidence in the company. 

"John and the team really have decided to get fortress-level cash balances on their balance sheets, and they want to instill confidence in the employees, suppliers, partners and most important customers, both current and potential, that they're going to be around," he said.

"I think raising cash is absolutely the right decision."

However, it's not quite clear how much money BlackBerry expects to raise, and the company itself did not comment on the potential value of the sales.

That's also keeping analysts guessing . 

CBRE Ltd., the commercial real estate firm hired by BlackBerry to conduct the sale, has plenty of data on U.S. cities and square footage rates, which makes it easier to calculate the effect on the bottom line, he said.

"The problem is, is that in the U.S. when they look at those real estate assets, and they look that they're in Waterloo there's no real [comparison] to Waterloo in the United States that's easily accessible. And by that I mean a comparable city to try and value square footage," said Misek.

That doesn't rule out an expansion in the U.S., however.

"It is very likely, though, [Chen] does open an innovation centre in Silicon Valley and that he makes sure he's tapped into that network that he's able to see what is going on in the market," said Misek.

"When he was announced as CEO, what we went back to, is we looked at transcripts and press clippings and analyst reports of his tenure at Sybase and some interesting things came to light. And that is that he has a playbook, and boy he's following it almost to a T and he really does have a plan. It's remarkable that he has a plan in the situation he's inherited but he does." 

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Why Red Bull will be a big winner at Sochi Olympic games

Energy drink company sponsors several athletes who are competing at Winter Olympics

CBC News Posted: Jan 22, 2014 9:00 PM ET Last Updated: Jan 23, 2014 1:52 AM ET

With the Olympics still weeks away the medals haven't been handed out, but there's already one clear winner at this year's Games: Red Bull.

The energy drink company sponsors several athletes who are competing at next month's Sochi Olympics, including Canada's Mark McMorris, a medal favourite in the extreme sport of slopestyle.

Red Bull sponsors a number of extreme-sports athletes who are also competing at the Sochi Olympic games. (CBC)

​

The connection to athletes and extreme sports is part of a sophisticated marketing scheme that has helped make Red Bull a dominant player in the energy drinks market. Instead of showcasing its product with traditional advertising, the company puts its marketing dollars into producing videos and sponsoring sporting events that appeal to youths, a key demographic for advertisers.

"What Red Bull has become is a media property that happens to sell a beverage as opposed to a beverage company who is really trying to invest in media to sell a beverage." said Ron Tite, a marketing executive based in Toronto.

The approach isn't without its risks. Seven people sponsored by Red Bull have been killed in extreme sport events the company sponsors.

Watch David Common's report for The National on Red Bull's marketing tactics in the video player at the top of this page.

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TSX COMPOSITE

Jan 23, 2014 10:19 AM ET Jan 23, 2014 10:19 AM ET Jan 23, 2014 10:19 AM ET Jan 23, 2014 10:20 AM ET Jan 23, 2014 10:19 AM ET

Index	Last Trade	Change
TSX COMPOSITE	13961.25	-26.95
DOW	16207.72	-165.62
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Toyota takes aim at 10 million car sales

Toyota remained the top-selling automaker for a second year in a row, beating U.S. rival General Motors by some 270,000 vehicles in 2013, and set an ambitious target to sell more than 10 million vehicles this year.

That would mark a milestone as no automaker has ever topped annual worldwide sales of 10 million.

Toyota Motor Corp. said Thursday it sold a record 9.98 million vehicles worldwide last year, up 2 per cent from the previous year.

The Japanese automaker has made an impressive comeback from an earthquake and tsunami that devastated northeastern Japan in 2011, damaging auto suppliers and hobbling production.

Toyota also outlined plans to sell 10.32 million vehicles and produce 10.43 million vehicles in 2014.

General Motors Co. sold 9.71 million cars and trucks worldwide last year, outselling Volkswagen AG of Germany at 9.5 million.

Toyota recaptured the global sales crown in 2012 from GM, which had been the top-selling carmaker for more than seven decades until being surpassed by Toyota in 2008.

Toyota, which makes the Camry sedan, Prius hybrid and Lexus luxury models, had strong sales growth last year in overseas markets, although sales fell in long stagnant Japan.

Toyota's U.S. sales totalled nearly 2.24 million vehicles, up 7 per cent from the previous year. Its China sales were also strong, surging 9 per cent to 917,000.

Toyota remained optimistic about prospects this year for both regions, expecting sales to grow 3 per cent in the U.S. to 2.3 million vehicles, while adding 20 per cent in China sales to 1.1 million.

The company was typically low-key about the bragging rights for being No. 1, reiterating its comments from previous years that it was merely making one car at a time to appeal to global consumers.

GM has also expressed similar sentiments, but being the top seller is a key morale booster for the employees and related companies. The healthy results at the three rivals reflect the momentum of growth in the auto industry.

Toyota has undergone tough times in recent years, such as a massive recall fiasco in the U.S. involving more than 14 million vehicles for sticky gas pedals, faulty floor mats, problematic brakes and many other defects, spanning several years from 2009.

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