Is Air Canada’s Rally Set to Continue?
Responsibility for emergency management is shared between the provinces, territories and the federal government, while individual communities a not to mention individual Canadians a bear the brunt of the fallout and initial response. Approaches to mitigation efforts vary wildly across the country. Cities such as Vancouver and Calgary have taken some initiatives to guard against damage from earthquakes and flooding, respectively, while Nova Scotia has a climate change adaptation fund. Elsewhere, governments have not been as proactive. Following severe flooding in Calgary in 2005, then Alberta MLA George Groeneveld commissioned a report on what could be done to lessen the impact of future floods. That report, which made several recommendations including the cessation of development on flood-prone land, was shelved until 2012, when Premier Alison Redford revived it. Its recommendations are now being reviewed and updated. Meanwhile, the federal government cancelled a 30-year-old program to help municipalities pay for upgrades to emergency management infrastructure in 2012, saying the goal of that program had been met. Federal Public Safety Minister Blaney declined a request for interview, but a spokeswoman said by email Canada has amade progress against all of the goals in the National Disaster Mitigation Strategy, but there is a great deal of work left to be done.a Following record floods in 2011, the federal government allotted $99.2 million for mitigation projects and has so far contributed $300 million to aid in recovery efforts for parts of Manitoba affected by flooding that year, she wrote, adding a federal panel on disaster risk reduction was formed in 2009 and will next meet for its annual roundtable in 2014. Disaster mitigation projects are also eligible for funding through the $53.5 -billion Building Canada Fund, and will soon be eligible for money from the Gas Tax Fund, but it is up to provinces or municipalities to initiate action. aUnder federal infrastructure programs, projects must be prioritized by the province and/or municipality.a University of Waterloo political science professor Daniel Henstra calls that reasoning a acop out.a aThe federal government has always been reluctant to take on a leadership or prominent central role,a he said. Compared to countries such as the U.S., United Kingdom, New Zealand and Australia where federal governments have initiated disaster prevention programs a Canada lags, he said. While the provinces have a ahuge responsibilitya in emergency management, Henstra said the federal government could initiate a cost-sharing arrangement for mitigation programs across all levels of government and clarify who is ultimately responsible for advancing the program beyond the discussion stage. aMost of the responsibility in (the Disaster Mitigation Strategy) is delegated to whatas called athe senior officials responsible,aa he said. aI donat know who that is.a The good news, Henstra said, is that governments are talking, but if any progress is to be made on implementing the plan, it had better happen fast.
When major players in an industry rally, their surging stock tends to place buying pressure on industry peers. In Air Canada’s case, it has robust earnings to accompany its rising shares. The company’s latest quarterly report solidly beat estimates, causing a pop of around 25% the day of the announcement, and setting the latest stage of its rally in motion. Earnings forecasts point to an even brighter future ahead for Air Canada’s earnings,with 2014 fiscal year consensus estimates of $0.96 per share. That makes the stock look extremely undervalued at less thanfive times its 2014 earnings. Another index inclusion The big news out of the U.S. airline industry last week was the inclusion of Delta Air Lines in the S&P 500, where it joined Southwest Airlines and became the only legacy carrier in the index. This helped Delta shares move higher in the days following, as the positive news was eaten up by investors who now view Delta as a safer investment. Its shares likely came under buying pressure from S&P 500-related funds as well. Air Canada was also invited to the S&P/TSX Composite, however,which is much like a Canadian version of the S&P 500. Although there are not nearly as many S&P/TSX Composite funds as there are S&P 500 funds, Air Canada’s presence in the index may increase some funds’ willingness to add shares of the airline. Additionally, investors will now see Air Canada shares in the same index as WestJet shares, decreasing the perception of WestJet as the financially healthy Canadian airline, and Air Canada as the financially unhealthy one.
Canada August Inflation Slows to 1.1% on Mortgages, Drugs
Canadian companies such as Toronto-based insurer Manulife Financial Corp. (MFC) and Montreal s commercial-jet maker Bombardier Inc. have backed an agreement, while European companies including engineering conglomerate Siemens AG of Munich and London-based miner Rio Tinto Plc are supportive. The Canadian Council of Chief Executives said in a Sept. 16 letter to Harper that the two sides are in a make-or-break point in negotiations. Unless both sides move quickly to make the necessary concessions, we fear that the Comprehensive Economic and Trade Agreement may slip out of reach and, with it, Canadas opportunity to secure preferential access to one of the worlds largest markets, John Manley , chief executive of the Canadian Council of Chief Executives, said in the letter. Dairy Market Canada has relatively more to gain from a deal, according to a joint study released in 2008 by the Canada and the European Commission. An agreement would increase annual Canadian gross domestic product by 8.2 billion euros ($10.9 billion), equivalent at the time to about 0.77 percent of the countrys output, the study found. The EU economy would increase its annual output by 11.6 billion euro, or 0.08 percent. While the EU bought 8.9 percent of Canadian exports in 2012, Canada represented 1.9 percent of total EU exports, according to Statistics Canada and Eurostat data. The U.S. received three-quarters of Canadas exports in July. Canada wants its beef producers to be allowed to export more than 40,000 metric tons to Europe, according to Matthias Brinkmann, the European Unions ambassador to Canada.
Mortgage interest costs fell 3.6 percent in August from a year earlier while prescribed medicines declined 4.2 percent, according to the report. Major price increases included a 9.5 percent jump in natural gas and a 1.7 percent rise in rental costs. Cheaper Phones On a monthly basis, consumer prices were unchanged in August as clothing costs rose 1.9 percent and telephone services declined 1.7 percent. The core rate climbed 0.2 percent in August from July. Economists surveyed by Bloomberg predicted that monthly prices would rise 0.1 percent and the core rate would increase 0.2 percent. BCE Inc. (BCE) s Bell Canada unit lowered its U.S. roaming fees on mobile devices by 50 percent in response to customer requests, the Montreal-based company said Sept. 16. Seasonally adjusted inflation rose 0.1 percent in August and adjusted core prices were unchanged, Statistics Canada said today. Increased retailer competition is helping restrain inflation, said Holt and Toronto-Dominion Bank economist Leslie Preston. Wal-Mart Stores Inc. is expanding the number of stores that carry fresh food in Canada this year while Target Corp.