Spain nationalizes three weak banks

Spain says it has nationalized three troubled banks that failed to meet new capital requirements and says the process of restructuring its financial sector is now complete.

The Bank of Spain identified them Friday as Unnim, CatalunyaCaixa and NovacaixaGalicia.

All three are the result of mergers of smaller savings banks known as cajas, a sector that was heavily exposed to Spain's imploded real estate sector. After capital injections, the government now owns more than 90 per cent of the three banks' shares.

The new core capital requirements were announced by the government in February.

The Spanish central bank says it has spent €7.5 billion ($10.2 billion US) in recapitalizing the three now nationalized banks and in restructuring the wider financial sector.

Accessibility Links

View the original article here

Ex Norbourg executives get 8 years for fraud

Two men found guilty in the massive Norbourg fraud scheme have been handed eight-year prison sentences.

Jean Cholette and Serge Beugré were each found guilty of more than 100 counts of fraud last spring.

Cholette worked as a controller at the financial company, and Beugré was its director general.

Superior Court Justice Marc David said in Montreal Friday that an exemplary sentence was necessary and that dissuasion trumped rehabilitation.

David said lengthy prison terms were the only way to send a strong message.

The Crown had sought nine years for Cholette and 10 for Beugré.

The Norbourg fraud is one of the largest in Canadian history, with some 9,200 investors being fleeced out of $115 million.

Vincent Lacroix, the mastermind behind the fraud, was sentenced to 13 years in prison after pleading guilty to about 200 fraud charges.

He was paroled last January after serving one-sixth of his sentence. He is living in a halfway house.

Accessibility Links

View the original article here

Anvil Mining soars on takeover bid

Shares in Montreal-based Anvil Mining soared Friday after a $1.3-billion friendly takeover offer from Chinese mining giant Minmetals Resources.

The copper producer’s stock closed at $7.66, up $1.89, or 33 per cent, on the Toronto Stock Exchange. More than 23 million shares traded hands, 50 times the normal volume.

It prices had reached as high as $7.75

The Minmetals bid of $8 is a 38 per cent premium over Thursday’s close.

Anvil’s operations are in the Democratic Republic of Congo.

If there’s a better offer, Minmetals will have the right to match it could receive a break fee of $53 million if the acquisition isn't completed in some circumstances.

Anvil Mining 3-month chart

It has also agreed to pay a $20-million fee to Anvil in certain circumstances, such as a rejection of the deal by Minmetals shareholders.

Minmetals made a $6.04 billion offer Equinox Minerals, a firm focused on copper mining in Zambia, but was beaten out by Toronto-based Barrick Gold Corp. in April.

The deal is the latest in a trend that has seen Chinese companies acquire stakes in oilsands, mining and other resources companies in Canada and around the world.

Earlier Friday, North Atlantic Potash Inc. sold eight of its exploration areas in Saskatchewan to China’s Yancoal Canada Resources for $110 million.

Over the last two years, Chinese companies have bought a 20 per cent stake in Vancouver-based Teck Resources, Canada's largest publicly traded miner. Chinese companies have also helped finance iron ore exploration in northern Quebec and other metals projects in the rest of Canada.

China has been stockpiling minerals, metals, cement, coal and other resources for years to help feed its rapidly growing needs as the world's second-biggest economy expands its network of roads and transit, and builds office buildings and factories.

With files from The Canadian Press Accessibility Links

View the original article here

Small business outlook positive, but threats loom

It’s been an eventful three years for Canadian small businesses, and while the economy remains bumpy, there are signs that Canada's small business sector is riding it out and gaining strength. But faced with the financial uncertainty of the global markets right now, the big question is whether to hunker down again or invest in growth.

Earlier this year, the federal government designated 2011 the Year of the Entrepreneur. It was as much a way to say thank you to small businesses for their efforts thus far as it was a recognition of the support needed by a key driver of Canada’s economic future.

After Lehman Brothers’ collapse in September 2008, the global economy was thrown into freefall. The domestic economy fared OK, but all-important export markets dried up as manufacturers fearful of making too many new products — and retailers wary of unsellable inventory —cut back on what they bought from Canadian suppliers. Even those lucky enough to have ready and willing customers were hit by a lack of capital, and companies either froze their staffing levels or started painful layoffs.

By late 2009, things were looking up as most of the developed world lurched slowly out of recession, and job numbers recovered. But then came the European debt crisis and America’s debt ceiling debate in early 2011, and the global economy was thrown for another loop. The stock markets took a dive in late September, further spooking consumers and entrepreneurs alike, and some economists are predicting a double-dip global recession — or worse.

In the face of uncertainty like that, what’s the best business strategy for a small business owner these days?

It depends who you ask.

“For the first time in the postwar era,” CIBC economists wrote in a recent report, “Canada’s small businesses outperformed their larger corporate counterparts during the last recession.”

That’s largely because small businesses, for the most part, have deeper roots in the domestic economy than their corporate counterparts. And Canada’s domestic economy fared comparatively better than others did during the slowdown.

In general, the small businesses that did well during the recession were ones that had their financial houses in order going in, had little debt, and were therefore able to benefit from low interest rates.

“The good ones had learned to reduce expenses,” says Jean-Rene Halde, CEO of the Business Development Bank of Canada, the federal government agency mandated to help fund entrepreneurs. “They were relatively lean and mean heading into the recession.”

The businesses that fared best in the recession were the ones who were lean to begin with, Business Development Bank of Canada president and CEO Jean-Rene Halde says. Paul Chiasson/Canadian Press

And anything related to real estate and retailing — two sectors that are closely tied to the vagaries of low rates — have done particularly well for themselves, CIBC notes.

But the latest economic data shows both retail sales and home prices are starting to sour. So even small businesses that have thrived will have to adapt again in order to put in a repeat performance if the economy hits another rough patch.

Mike Michell is the national small business director at Canada’s biggest bank, the Royal Bank of Canada. “There’s no one sector that pops out,” in terms of which businesses will deliver solid performance if the economy slows again, he says.

That means the winners of tomorrow are just as likely to be manufacturer as they are tech startups, he adds. So there’s no silver bullet for success in turbulent economic times — beyond smart planning.

If there is a trend, it’s that the bank’s customers are taking advantage of low rates and investing in their businesses if they can secure loans — an encouraging sign no matter what, Michell says.

'I can’t see Canada having too much leeway to raise [rates] '—CFIB president Catherine Swift

Certainly, interest rates don’t seem like they’ll be rising any time soon.

Finance Minister Jim Flaherty and Bank of Canada governor Mark Carney have been warning Canadians for months that rates have nowhere to go but up. And yet, the rate remains at 1 per cent — the same level it’s been at for more than a year now. Many inside the central bank and at other financial institutions would no doubt dearly love to hike rates, but with anemic growth and serious economic troubles overseas, there’s little they can do.

“The fact that the Fed has said they’re going to hold steady until 2013 at least, I can’t see Canada having too much leeway to raise [rates] either,” says Catherine Swift, the president of the Canadian Federation of Independent Business.

With 108,000 members across the country, the CFIB is the largest organization for Canadian small businesses. In general, its members have a cautiously optimistic view, Swift says.

“The good news is, I always look at employment ahead of any other indicators, and on that front there’s some hope,” Swift adds.

Granted, data showing Canada created essentially no net new jobs in August was disappointing. But in general, Canadian employment is trending in the right direction. Statistics Canada says we’ve added 223,000 new jobs in the past calendar year, and as the current federal government is fond of reminding us, Canada is the only G8 country to have completely replaced all the jobs lost during the recession.

An employee at The Camera Store in Calgary shows a camera to a customer. Retailers have done comparatively well following the recession, but there are signs of a slowdown. Todd Korol/Reuters

“So far what we’re seeing is small businesses hanging on, keeping the people they’ve got, and in some cases ramping up” Swift says. “To me, that’s the good news story.”

Indeed, data from Royal Bank also hints at an upbeat outlook for small business owners. The bank’s latest survey says two-thirds of them are planning to invest in their company over the next two years. A lot of that will take the form of new technology and equipment, but more than 10 per cent of owners said they plan to hire more employees.

“Even in an unsettled economy, most small business owners are investing in their operations,” Michell says. And low interest rates are a driving factor of that, he adds.

The survey polled 1,400 small business owners who deal with the bank, and the results are emblematic of the cautious optimism that pervades at the grass-roots level.

CFIB’s own data shows about 12 per cent of its members say they plan to hire additional full-time staff in the next three or four months. That’s certainly good news, but other CFIB numberse don't paint an entirely rosy picture.

The CFIB’s Business Barometer index dropped to 61.7 in August, down from 68.3 in July. That’s the lowest reading since July 2009 and it indicates small business owners know they’re not out of the woods yet. A reading of above 50 implies respondents expect their businesses will grow, not contract, in the next year. The higher above 50 the number, the more optimism pervades.

'We don’t live on an island and if our big brother is sick, it’s going to affect us too'—BDC president Jean-Rene Halde

A weaker showing is perhaps not expected considering the time frame — entrepreneurs were questioned as the U.S. debt ceiling debate was underway, and Europe’s sovereign debt crisis reached its most recent nadir.

It's not hard to see why businesses aren't bursting with enthusiasm about their prospects for the immediate future.

“Most entrepreneurs cannot connect quantitative easing and European debt to how it will impact their business,” Halde says. “Entrepreneurs are cautiously optimistic about their own firms. But we don’t live on an island and if our big brother is sick, it’s going to affect us too.”

Whether our big brother is on the road to recovery or about to suffer a relapse is anyone's guess at this point.

As the CFIB’s Swift puts it: “Every time things seem to get better, we end up getting whacked again.”

Accessibility Links

View the original article here

Occupy Wall St. protest to march into Canada

Activists are planning an occupation of Toronto's financial district as well as other Canadian cities following in the footsteps of protesters currently camped out on Wall Street in New York City.

A group calling itself Occupy Toronto Market Exchange has launched a website to organize a march on Bay Street beginning Oct. 15.

That's a Saturday, when the stock exchange is closed and few people are working in Canada's financial capital.

About 830 people on Facebook have replied they would attend the event in Toronto.

Occupations are also planned in the streets in other Canadian cities, including Vancouver, Montreal and Calgary.

South of the border, protesters speaking out against corporate greed and other grievances remain in Manhattan's financial district.

They are holding their ground even after more than 700 of them were arrested Saturday during a march on the Brooklyn Bridge in a tense confrontation with police.

The group Occupy Wall Street has been camped out in a plaza for nearly two weeks staging various marches, and had orchestrated an impromptu trek to Brooklyn.

Protesters are speaking out against corporate greed, government bailouts, and income inequality amid high unemployment and the prospect of another recession.

Canada's economic growth has been slowing, leading some to believe this country could also be headed for recession.

Accessibility Links

View the original article here

Quebec, Ottawa reach $2 billion HST deal

Ottawa and Quebec have finally signed a tax-harmonization deal that will give the province more than $2 billion.

Prime Minister Stephen Harper and Premier Jean Charest made the announcement at a joint news conference in Quebec City Friday.

The province had been seeking $2.2 billion in compensation for agreeing to combine the GST with its provincial sales tax nearly 20 years ago.

The Tories promised during the federal election campaign last spring to settle the matter by mid-September.

But the deadline was later extended until the end of the month to work out technical details.

One potential sticking point was whether Quebec could be compensated for harmonizing its provincial sales tax with the federal GST, while still collecting the tax itself.

The failure to reach a deal was a political lightning rod for Quebec sovereigntists over the years, with the Parti Quebecois and the Bloc Quebecois constantly berating their federalist foes.

Ontario and British Columbia received federal transfer payments for implementing the HST.

British Columbia has to return the $1.6 billion in transition funding after voters killed the province's HST in an August referendum.

Ontario received $4.3 billion from Ottawa after moving to the HST in 2010.

Accessibility Links

View the original article here

Federal deficit hits $1.6B in July

The federal budget deficit in July rose to $1.6 billion, compared with $0.5 billion in the same month a year earlier, the Finance Department reported Friday.

So far this fiscal year, spending has surpassed revenue by $7.1 billion, compared with $7.7 billion in the first four fiscal months of 2010.

“Revenues and expenditures are in line with expectations made at the time of the June budget,” Sonya Gulati, an economist with TD Bank said in a commentary. "The federal government appears to be on track to meet its $33.2-billion deficit projection for the current fiscal year.”

Many economists have lowered their predictions for Canadian growth this year, said Gulati, but Ottawa’s lower budget estimate for economic growth than the markets had earlier predicted “gives the fiscal plan a bit of breathing room,” she said.

“However, if uncertainty on the global stage were to amplify, the government would be hard-pressed to meet medium-term deficit targets.”

The deficit numbers were released a day after Parliament's budget watchdog, Kevin Page, warned that an aging population and other factors mean the country's finances are not sustainable over the long term.

Page warned that debt can't continue to grow faster than the economy, meaning the government either has to raise taxes, reduce overall program spending, or deliver a combination of the two.

Revenues in July fell by $0.2 billion, or 1.1 per cent. Revenue from personal income taxes rose by $0.7 billion, or 6.7 per cent, while corporate income tax collections fell by $0.3 billion, or 12.8 per cent.

Program spending rose $0.8 billion, or 4.3 per cent. Transfers to the provinces and other levels of government increased by $1.1 billion, or 24.4 per cent.

The cost of servicing the debt rose by $0.1 billion.

Accessibility Links

View the original article here

Canada's economic growth rose in July

Canada's economy grew by 0.3 per cent per cent in July, buoyed by the manufacturing, wholesale trade and transportation sectors, Statistics Canada said Friday.

The July report was in line with the forecasts of many economists. According to Reuters, 21 economists they surveyed had a median forecast for growth for July of 0.3 per cent.

In June, the economy grew by 0.2 per cent.

For the April-June period, Canada's economy had its first quarterly decline since the recession of 2009. The country's gross domestic product fell 0.1 per cent during the quarter, or 0.4 per cent on an annualized basis.

Some economists are suggesting the current quarter could show growth of up to two per cent, meaning the country would avoid slipping into a second consecutive quarter of economic contraction. Two straight quarters of contraction are considered a technical recession.

"While this report largely pre-dates the onset of serious financial market turbulence — which began in earnest in late July—it does suggest the Canadian economy had some decent momentum heading into the turmoil," BMO Financial deputy chief economist Douglas Porter wrote in a commentary.

"The July gain builds in annualized growth of 1.3 per cent for all of [the July-September quarter] (i.e. assuming no change in the next two months, a tough constraint), heavily reducing the risk that Canada has somehow stumbled into a technical recession ahead of the rest of the world," Porter said.

Canada is not an island, cautioned TD Financial economist Leslie Preston, adding that monthly GDP is not expected to maintain the strength seen in July.

"We expect a rebound GDP in Q3 to be followed by modest growth in Q4 as recent financial turbulence weighs on business and consumer sentiment to pull some of the steam out of domestic spending," Preston said.

In July, the manufacturing sector growth increased 1.4 per cent from June, ending three months of declines. Statistics Canada said the sector's advance was broad, led by motor vehicles and parts, fabricated metals, machinery and chemical production.

Transportation and warehousing services grew 1.8 per cent, mainly due to a resumption of normal activity after the end of a labour disruption at Canada Post in June.

Wholesale trade was up by 1.5 per cent.

On the down side, activity in retail trade, mining, oil and gas extraction, construction, and the finance and insurance sector decreased.

Accessibility Links

View the original article here

St. Lawrence Seaway served with strike notice

The Canadian Auto Workers union served 72-hour strike notice Friday for workers at the St. Lawrence Seaway Management Corp.

The two sides were expected to continue bargaining over the weekend with the help of a federal mediator but, if a deal is not reached, a strike by some 475 workers could start as early as noon on Monday.

The company is responsible for the movement of marine traffic through the Canadian Seaway facilities, which includes 13 of the 15 locks that lift and lower ships between Montreal and Lake Erie.

In Ottawa, Labour Minister Lisa Raitt urged both sides to reach an agreement noting that any work stoppage could hurt Canadian businesses and the economy.

"Our government is focused on completing the economic recovery and this means protecting Canadian jobs as the economy remains fragile," Raitt said in a statement.

Raitt threatened two unions at Air Canada with back-to-work legislation earlier this year, and legislated striking Canada Post workers back to work, citing the impact that the job actions would have on the economy.

CAW president Ken Lewenza urged Seaway management to be more responsive to union's concerns. He said that the 72-hour notice was necessary to get bargaining moving in the right direction.

The two sides began negotiating three collective agreements in May.

Accessibility Links

View the original article here

RIM denies leaving tablet market

Shares in BlackBerry maker Research In Motion slumped Thursday, despite the firm's denial of a report that it had halted production of its PlayBook tablet computer and cancelled additional tablet projects.

"Any suggestion that the BlackBerry PlayBook is being discontinued is pure fiction," RIM spokesperson Marisa Conway told CBC News.

"RIM remains highly committed to the tablet market."

RIM shares closed down 70 cents, or 3.1 per cent, at $21.97 on the Toronto Stock Exchange.

RIM described any suggestion that it was discontinuing its BlackBerry PlayBook as ‘pure fiction.’ Mike Cassese/Reuters

They have lost 69 per cent of their value since reaching their 52-week high in February.

"We believe RIM has stopped production of its PlayBook and is actively considering exiting the tablet market," John Vihn, an analyst with Collins Stewart, wrote in a commentary.

Vihn’s report came a week after Quanta Computer, a Taiwanese contract manufacturer for RIM, laid off about 1,000 workers at a factory that produces the PlayBook, among other products. It did not comment on whether the cuts came at the RIM production line.

It followed by one day Amazon's announcement of new competition for the PlayBook, unveiling its new Fire tablet, and amid continuing stiff competition from Apple's iPad and iPad2.

RIM shipped only about 200,000 PlayBooks in its most recent quarter, about half of what analysts had been expecting and below RIM's own expectations.

But the company's senior executives told analysts that RIM was preparing to roll out a major new version of the PlayBook's operating system, with details to be revealed at a developer conference in mid-October.

Some Canadian retailers have slashed the prices of the PlayBook as the company is expected to bring out a new version of the tablet computer's operating system.

Best Buy, Future Shop and Staples cut the price of all three versions of the PlayBook by $100.

It started retailing in April with list prices at $499, $599 and $699 depending on the model, which had between 16 GB and 64 GB of memory.

At the same time, RIM announced another of its executives is resigning.

Tyler Lessard, the senior vice-president for global alliances and developer relations, "is moving on to pursue other interests," RIM said in a statement.

A director of developer relations, Mike Kirkup, resigned in August and RIM's marketing chief, Keith Pardy, departed in March, followed later by two others in the marketing area. Chief operating officer Don Morrison left in July after taking a medical leave.

With files from The Canadian Press Accessibility Links

View the original article here

Greek debt inspection stalled by protests

Striking civil servants occupied the Transport Ministry building in Athens early Friday, forcing international debt inspectors to reschedule a meeting where they were to discuss reforms, including new licensing laws for taxis.

Transport Minister Yannis Ragoussis's morning meeting was delayed to the evening after the debt inspectors, collectively known as the troika, arrived to find the building under occupation and protesting employees in the courtyard.

A similar meeting Thursday with Finance Minister Evangelos Venizelos was moved to a different government building in central Athens due to an occupation of that ministry.

"This is our answer to those who seek to further degrade our lives ... Our aim is to overturn this barbaric policy," said Ilias Vrettakos, deputy leader of the civil servants union, ADEDY.

The union fiercely opposes a new round of pay cuts, due to take effect on Nov. 1, and the government's plans to suspend at least 30,000 of their members on reduced pay.

A senior government official said key details of suspension plan were to be worked out at an emergency Cabinet meeting Sunday. He asked not to be named, pending official announcements.

At the Finance Ministry, protesting employees continued their occupation for a second day, guarding the entrance where the words "They shall not pass" had been spray-painted across drawn-down metal shutters, and Venizelos again met the debt inspectors in another building.

The inspectors from the International Monetary Fund, European Central Bank and European Commission returned to Athens this week after suspending their review earlier this month over missed targets and delayed implementation of reforms. Their approval is critical for Greece to receive the next €8 billion installment of its €110 billion ($150 billion US) bailout loan package agreed on last year.

Without the next batch of loans, Greece has said it only has enough funds to last it through mid-October, after which it will be unable to pay salaries and pensions.

Mired in a deep recession and faced with growing anger on the streets, the government has been unable to meet all the targets set out in its bailout agreement. Other European countries, faced with the possibility of a messy Greek default that would drag down their common currency and cause significant problems for their banks, approved a second, euro109 billion bailout for Greece on July 21. But the details of the deal remain to be finalized, and some have suggested the plan needs to be reworked.

In a rush to ensure the return of the troika and approval of the sixth batch of bailout loans, the government this month announced a series of new measures, the civil service suspensions and a new property tax to be levied through electricity bills.

At banks, tax offices and postal outlets, Athenians waited stoically in huge lines to pay the first installment of a separate emergency tax bill and register for a national census of pensioners, set up to eliminate fraudulent claims.

"It's been crazy today. But at least we've got extra staff to handle it," said Viki Dionelli, a worker at a central Athens post office. She joked to one customer: "See you again next year."

Greeks have been outraged by the new cuts after more than a year of austerity which has seen salaries and pensions trimmed and several waves of tax increases on income, property and consumer goods. Unions have held daily demonstrations in central Athens, with many gathering to burn notices demanding an emergency tax.

College students, former military officers, and workers at a health ministry home assistance program staged separate protest rallies Thursday.

Civil servants have declared a 24-hour strike for Oct. 5, which air traffic controllers have said they will join, effectively grounding all flights to and from the country. A nationwide strike has been declared for Oct. 19.

Accessibility Links

View the original article here

Copyright changes: how they'll affect users of digital content

Canada has been trying to reform its copyright legislation, which was last updated in 1997, for several years now.

There have been four attempts to date to pass amendments that would bring the Copyright Act in line with the digital age — one by the Liberals in 2005 and three by the Conservatives, in 2008, 2010 and, now, in 2011.

In this latest attempt, Heritage Minister James Moore said the government "didn't alter a comma" in the original Bill C-32 it had introduced last year and would not be opening up new consultations on the proposed legislation. Instead, it would pick up where hearings left off, with a view to passing the bill by the end of 2011.

Extensive public consultations were held across the country in 2009. The parliamentary committee reviewing the bill heard from groups representing consumers, musicians, authors, educators, performers, the music, movie and other creative industries, librarians, publishers, legal experts, software producers, video game developers and others.

The bill has been closely watched by many interested parties, mainly because of its implications for the production, sale, distribution and consumption of digital content, including music, video, electronic books and software.

Although the bill could still be amended, most expect it will not be substantially altered between now and its passing.

Below are some of the most significant proposed changes to the Copyright Act that will affect users.

If passed in its current form, the Copyright Modernization Act will allow Canadians to:

Copy content from one device to another, such as from a CD to a computer or an iPod. This provision, however, does not apply to content protected by a digital lock, which is any technological measure, such as encryption or digital signatures, that rights holders use to restrict access to or prevent the copying or playing of CDs, DVDs, e-books, digital files and other material.Record television, radio and internet broadcasts and listen to or view them later on whatever device they choose but not for the purposes of building up a library or for commercial use. This provision does not extend to content that is offered "on-demand" (streamed video, for example) or protected by a digital lock.Make a backup copy of content to protect against loss or damage — again unless that content is protected by a digital lock or offered as an on-demand service.Incorporate legally acquired copyrighted content into their own user-generated work, as long as it's not for commercial gain and does not negatively impact the markets for the original material or the artist's reputation. An example would be the posting of your own mash-up of a Lady Gaga song and, say, a Beyoncé number on YouTube.Use copyrighted content for the purposes of education, satire or parody. This expands what is known as the fair dealing provisions of the existing law — which until now covered only research, private study, criticism and news reporting. Copy copyrighted material that is part of an online or distance learning course in order to listen to or view it at a later time. Under this provision, teachers can provide digital copies of copyrighted material to students as part of the course but only if they and the students destroy the course material within 30 days of the end of the course. Teachers are also expected to take reasonable measures to prevent the copying and distribution of the material other than for the purposes of the course. Critics have referred to this part of the Act as the "book burning" provisions.

The new law will also:

Prohibit the circumventing of digital locks, even for legal purposes — such as the education or satire uses protected by other sections of the Act. This is one of the most controversial parts of the legislation. Many experts have criticized the government for not including an exemption that would allow for the bypassing of digital locks for legitimate purposes, such as the copying of parts of digitally locked textbooks to view on another device or for use in an assignment.Prohibit the manufacture, importation and sale of technologies, devices and services designed primarily for the purpose of breaking digital locks. This includes technology designed to allow you to play foreign-bought DVDs on your North American player, for example.Require internet service providers to notify their customers that they are violating the copyright law if a copyright holder informs the ISP of possible piracy. The ISP is required to retain "relevant information" about the user such as their identity, and that information could potentially be released to the copyright holder with a court order.Exempt ISPs and search engines from liability for the copyright violations of their users if they are acting strictly as intermediaries in the hosting, caching or communication of copyrighted content.

Prohibit a person to provide a service over the internet or another digital network that the person "knows or should have known is designed primarily to enable acts of copyright infringement." This clause is targeted at websites created for the purpose of distributing copyrighted content, such as the many popular peer-to-peer file-sharing sites used to swap video and audio, and is meant to "make liability for enabling of infringement clear."

Differentiate between a commercial violation of copyright law and an individual violation. Individuals found violating the law could be liable for penalties between $100 and $5,000, which is below the current $20,000 maximum.

Allow librarians to digitize print material and send a copy electronically to users, who can view the material on a computer or print one copy.Allow disabled consumers to adapt copyrighted material to a format they can more easily use.

The parts of the proposed law that have received the most criticism are the ones concerning digital locks. Many internet, copyright and legal experts say Canada has gone too far in appeasing the corporate interests that use the locks at the expense of consumers, who are entitled to use copyrighted content lawfully but prevented from doing so by the excessively restrictive digital lock amendments.

"In many ways what we have here is a tale of two bills," says Michael Geist, a University of Ottawa law professor who specializes in internet law and has a strong interest in copyright issues.

"There is a whole series of provisions where there is genuine attempt to strike a balance — on fair dealing, on the liability of internet providers when it comes to infringement on their networks, on damages. The outlier are the digital lock rules, which run counter to what the government consistently has heard from every education group, consumer group and tens of thousands of Canadians."

The solution, Geist says, would be to amend the bill so that the circumvention of a digital lock would be a violation only if it was linked to actual copyright infringement.

"Where you've got someone who circumvents a lock with the intent of burning 1,000 copies and selling them on a street corner, absolutely the law ought to target that," Geist said. "But where we're talking about the consumer who wants to play the DVD they've purchased in Europe or in Asia, or the student who wants to make use of the electronic book on their laptop, or the journalist who wants to use a clip out of a DVD for a news report or the teacher who wants to do a mutlimedia presentation, it seems to me that the law currently says they have those rights, and those shouldn't be lost just because there is a digital lock on the content."

Geist and others say the unnecessarily restrictive digital lock provisions mimic similar ones adopted in the U.S. and were driven by pressure from U.S. authorities, not by Canadian interests. Earlier this month, Geist published an article about internal government documents leaked by WikiLeaks that suggest Canadian officials were eager to tailor the copyright bill to U.S. interests and at one point even offered to show a draft of the bill to U.S. officials before it was tabled in the House of Commons.

The irony, says Geist, is that the U.S has recently introduced changes that make its laws on digital locks less restrictive than Canada's would be.

Another provision that has raised the ire of critics is the one requiring students and educators to destroy online course material that uses copyrighted works within 30 days of the course being over.

"That exemption tries on the one hand to facilitate distance learning and the use of technology, but at the same time, if you rely on that exception, you are then subject to the limitation of destroying the materials," Geist said.

File-sharing sites have been a popular target of copyright advocates, but the proposed law doesn't really alter much on that front. The clause prohibiting services designed to "enable acts of copyright infringement" doesn't go much further than the existing copyright law, says Geist.

It was under the existing law, for example, that the Canadian Recording Industry Association and several major record labels launched a still-ongoing court case against the website isoHunt. The Vancouver-based site acts as a search engine for finding video, audio and other types of files that are shared using the file-sharing protocol known as BitTorrent.

"The reality is we already have the laws to deal with those issues," Geist said.

"What we've seen in many ways is not shortcomings in the law but a lack of willingness among some of those industries to go after some of the sites in Canada where there is a problem."

As for the role of internet service providers in policing copyright infringement, the system of notifying alleged violators that the law entrenches has been praised as an effective way of dissuading copyright violations and already exists at many of the large ISPs.

Rogers Communications, Canada's second-largest ISP, for example, testified before the committee reviewing the copyright bill that very few of its customers who receive notices of potential copyright violations need a second reminder, Geist said.

The government has posted several backgrounders and FAQs about the legislation online.

Geist has posted extensive material on the copyright legislation on his blog, much of it obtained through access to information requests. The material includes the government's clause-by-clause justification of its proposed amendments and the talking points prepared for the heritage and industry ministers in advance of their November 2010 appearance before the committee examining the copyright bill.

Accessibility Links

View the original article here

U.S. consumers spend more, bring home less

U.S. consumers spent slightly more last month but earned less for the first time in nearly two years. The new data on spending and incomes suggest Americans tapped their savings to cope with steep gas prices and a weaker economy.

The Commerce Department said Friday that consumer spending rose 0.2 per cent in August after a revised 0.7 per cent increase in July.

Incomes fell 0.1 per cent. That's the poorest showing since a similar 0.1 per cent drop in October 2009.

Americans saved less money. The savings rate fell to its lowest level since late 2009.

A decline in income growth could slow the economy, if it causes households to cut back on spending. Consumer spending accounts for 70 per cent of economic activity.

The economy grew at an annual rate of just 0.9 per cent in the first six months of the year, the slowest growth since the recession officially ended more than two years ago.

Economists expect only slightly better growth in the second half of this year, based on expectations that consumers will spend more.

Some are predicting growth of around 2 per cent in the second half of the year. That level of growth would ease recession fears, but it's not enough to lower the unemployment rate, which was 9.2 per cent in August.

Consumer confidence stayed weak in September after the economy experienced a number of shocks this summer. Lawmakers fought over raising the nation's borrowing limit, Standard & Poor's downgraded long-term U.S. debt, the stock market fluctuated wildly and Europe's debt crisis intensified.

Employers have pulled back on hiring. In August, they added no new jobs.

Some pressures are easing. Gasoline prices are now roughly $3.46 US per gallon. While that is higher than last year, the price is down nearly 52 cents from this year's peak price of $3.98.

The Federal Reserve last week agreed to shift $400 billion of its portfolio of Treasury securities to try to drive down long-term interest rates. It was the Fed's latest unconventional move seeking to give the economy a boost.

Accessibility Links

View the original article here

Canada-Japan flights to increase under expanded pact

An expanded deal between Canada and Japan calls for greater access for Canadian airlines to Tokyo's Narita International Airport. Michael Caronna/Reuters

Canada has expanded its air services agreement with Japan, paving the way for more flights between the two countries.

The move was announced Saturday by International Trade Minister Ed Fast during a visit to Japan where he is working to strengthen Canada's trade and investment ties with Asia.

The new deal calls for greater access for Canadian airlines to Tokyo's Narita International Airport and added flexibility for airline routings.

The agreement also includes additional rights for services between Canada and Japan through third countries.

Fast said the deal will help deepen Canada's trade and investment relationship with Japan.

Under Canada's Blue Sky policy, launched in late 2006, the government has concluded open, new or expanded air services agreements with nearly 60 countries.

Accessibility Links

View the original article here

Loonie closes at 12-month low

The Canadian dollar closed below 96 cents US at a 12-month low Friday, as traders moved into more widely traded U.S. dollar denominated securities.

The loonie's official Bank of Canada close was 95.40 cents US, down 1.07 cents. It hasn't been that low since Sept. 8, 2010.

It has lost 1.74 cents this week.

Markets are concerned that a slowing global economy will hurt exporting countries such as Canada.

The drop came even as Statistics Canada reported the economy registered a modest gain in July, with gross domestic product rising 0.3 per cent, which met economists' expectations.

The GDP rise followed a 0.2 per cent increase in June and translated into annualized growth of 2.3 per cent.

The U.S. dollar strengthened amid another round of doubt that European officials can find a solution to the government debt crisis.

Canada’s dollar has also fallen against other major currencies.

In two months, the loonie has fallen by seven per cent against the Bank of Canada’s index of six currencies used by the country’s biggest trading partners.

"It is impossible to ignore the accelerating weakness in the Canadian dollar; our base case remains that as long as risk aversion remains high, it is likely that the Canadian dollar will struggle," Camilla Sutton, chief currency strategist at Scotia Capital, wrote in a report.

"In order for risk aversion to drop significantly, markets will need a better solution for Europe (one that includes a framework for an orderly default for Greece, bank recapitalization and a plan to ring-fence contagion)," Sutton said.

"We expect this before year end and accordingly, believe we will see the Canadian dollar retrace some of its losses into year end; however, for now the near-term outlook continues to darken."

On Wednesday, the Bank of Montreal predicted Canada’s currency will fall to 93 cents over the next three months amid slowing global growth, the increasing market nervousness over Europe’s debt crisis and as commodity prices continue to decline.

The loonie's highs and lows (intraday):With files from The Canadian Press Accessibility Links

View the original article here