Canada must nationalize the oil industry, according to Professor Lauzon

Canada should follow the example of Venezuela and Norway and nationalize the oil industry is repeat what Professor Leo-Paul Lauzon, who saw a way to combat what has, in his All of a monopoly. "How can we prove that there truly a cartel?", Wondered the Chair of socio-economic studies at the University of Quebec at Montreal (UQAM), at a press conference Tuesday, marking the unveiling of a study on the subject. One need only watch "mirobolants profits" that oil companies have each year and rates of return they make, he said, without forgetting that all service stations increase their prices at the same time. Professor Lauzon and researchers Martine Lauzon (his daughter) and Marc Hasbani have analyzed data from 1999 to 2007 of the six largest oil companies on the planet, is Exxon Mobil, Royal Dutch Shell, BP, Chevron Texaco, Total and Conoco Phillips. Net profits of these companies have exploded more than 400 percent over the past eight years. These profits are unimaginable in a normal market economy, they argue. In addition to being the sole producer and exporter of oil to be privatized oil and gas industries, Canada has gone up to sell these resources to foreign interests, noted Leo-Paul Lauzon. He argued that the Canadian government deprives a significant revenue, and intentionally, it reflects badly. Professor Lauzon calls on the Government of Canada to reverse this situation. "All producing and exporting countries that have nationalized their oil and gas resources have done with great success, he argued. There is no failure!" The profits of the six oil surveyed do not follow normal curve, researchers believe. They have posted average rate of return after taxes of 26 percent. Exxon Mobil, the world number one, has even reached a rate of 35 percent. "If you make a profit after tax of 8 per cent while inflation rate is 3 percent, you double your capital in seven or eight years, which is excellent," said professor of accounting. When you es delivered to the rate of return after taxes of 25 to 30 per cent, there is a problem. And over a long period, this is a factual proof that we are not facing a competitive business. " "In a competitive sector, where restaurants and a bar or nightclub which profits are crazy, it will attract others and it will restore the rate of return of all, he added . Rates of return of 30 percent after taxes, even the 'Shylock' do not do that! "

The North American exchanges finish the session relatively stable

A mixture of good and bad news has left North American markets essentially stable Tuesday, investors being cautious in their assessment of the latest aid program of the U.S. government. The index star of the Toronto Stock Exchange, the S & P / TSX, has advanced 1.99 point to close at 8442.86 points, moderated by lower oil prices. The energy sector prosecutors Toronto has restated by 1.2 per cent, while a barrel of crude oil fell U.S. $ 3.73, or seven per cent to U.S. $ 50.77 on the Exchange of raw New York (NYMEX). The Canadian dollar has also increased by 0.63 cents U.S. to 81.63 cents U.S., after taking Monday 2.70 cents U.S.. In New York, the Dow Jones average of industrial values rose by 36.08 points to 8479.47 points, despite the publication of several economic data appeared to confirm that the degradation conditions and curbed and the optimism of investors. The benchmark S & P 500 advanced 5.58 points to 857.39 points while the Nasdaq composite index declined 7.29 points to 1464.73 points. Investors reacted to the announcement that the Federal Reserve to buy U.S. $ 100 billion of debt to mortgage giants Fannie Mae and Freddie Mac as well as federal bank loans. The Fed will also buy for around U.S. $ 500 billion of securities backed by mortgages. The financial actions of the Toronto Stock Exchange rose 0.48 percent after the Bank of Montreal (TSX: BMO) had reported results for the fourth quarter up 24 percent over last year. The action took the bank 83 cents to $ 34.95. The gold sector has yielded 0.7 percent, the price of bullion having retired from U.S. $ 1 to U.S. $ 818.50 an ounce, a decline somewhat mitigated by the declining value of the U.S. dollar. The sector of information technology posted the largest decline Tuesday, falling 2.9 percent. The Action Research In Motion (TSX: RIM) dropped $ 4.50 to $ 50.77. The TSX Venture TSXV has sold 2.83 points to 719.96 points. In the U.S., the Commerce Department reported Tuesday that gross domestic product shrank by 0.5 percent in annualized value during the quarter from July to September, U.S. consumers have reduced their purchases of the most important in 28 years. Other bad news came from the front of the housing market, with the publication of the Standard & Poor's / Case-Shiller on home prices. Prices fell to record annualized rate of 16.6 percent, reaching levels of the first quarter of 2004. "The market is faced with a mentality of deflation at this time", commented Paul Vaillancourt, director at Franklin Templeton Managed Solutions in Calgary. "Clearly, we are touching the bottom, but we have not yet rebounded. We must expect that this period passes - perhaps until Christmas vacation. As time passes, we will return in the new year with an attitude and a more positive. " "People cling, they want good news, but it is increasingly difficult."

Difficult decisions in order

The Speech from the Throne presented Tuesday afternoon at the Legislative Assembly of New Brunswick does not reforms and future. New Brunswickers also learn that tough decisions will be taken to contain government spending. The Cabinet will review all programs to achieve savings. The promised tax cuts to large corporations and senior employees could be postponed. "If it is necessary because of the economy, the government is prepared to do that," said Premier Shawn Graham. Apart from a revision of the law on the transfer of securities, the Graham government offers little new to address the economic slowdown. The throne speech also addresses the language issue, but lip service. "We must ensure that the expectations of the community are fully consistent with the principles of transformation of our province," said Lieutenant Governor Herménégilde Chiasson read the speech. An Advisory Committee on Francophone Affairs will be created. A new policy on the working language will be introduced in April 2009. The government will maintain its reform especially for post-secondary education, yet strongly criticized by the French. As for health services, the Prime Minister emphasized that the duality was not feasible as a matter of costs. "There is a question that is raised today on the duality in health care, and there is a cost to it, a cost that is very, very expensive," said Shawn Graham. Several other issues will receive the attention of government: energy, forestry, transport and especially a new pay equity legislation, which will apply to all public service employees. The Speech from the Throne offers guidance to government. For members, the real work begins the next morning.

Oil is bouncing Couche-Tard

The credit note Couche Tard has been found. High oil prices into force from July to October has enabled Couche-Tard reaping record profits of 97.6 million for its second quarter of operation. With a turnover of 4.6 billion, up 30%, and profits of 97.6 million, or 9 cents per share, Alimentation Couche-Tard has been a record quarter. With high fuel prices that gross margins in the U.S. have been high, Couche-Tard has fully offset the lower volumes of fuel per store by 10.6% in the United States. Also in the U.S., sales of goods grew despite comparable store sales down slightly by 1.0% in part due to hurricanes and a gross margin of 32.3%. In Canada, sales are rising and lower margins on fuel have been under pressure. Far from jubilant, president and CEO of Couche-Tard, Alain Bouchard remains cautious. "We are aware that we still have challenges to face given the difficult economic situation. However, this situation could allow us to make acquisitions on advantageous terms, "he said. Especially as Couche-Tard can now receive a credit rating higher. The rating agency Standard & Poor's raised its note of BB to BB +.

The institution admits selling assets

The Caisse de depot et placement du Quebec has admitted Tuesday afternoon, having need cash last month. The agency had to sell assets to address the decline in financial markets. Last October, leaders of the Fund are departures of futures and equities. It is unclear, however, the amounts of transactions. The Caisse de depot et placement is limited to say they are much lower than those reported in the media. The Globe and Mail suggested in its Tuesday edition that the Fund had sold for about $ 10 billion of shares to generate cash. The sources say that daily losses are still quite high. In dropping assets during the collapse of financial markets, losses were theoretical necessarily materialized, said the newspaper. The Globe and Mail also claims that its hedging against exchange rate risks, those involving derivatives, and its activities in the international real estate sector was most affected. According to Michel Nadeau, a former senior officer of the Fund, the institution has made a good decision. "She needed additional liquid securities. It should generate cash. It was sold, and it was a good decision, "he said. In fact, the Fund could get less if it had delayed the sale, as markets continued to decline. Last Friday, the Fund was reassuring on the amounts of liquidity it could have. Leaders of the Fund stated that there was no liquidity problem and that the Fund could have 20 billion dollars. The Fund will publish its financial statements only in February, as scheduled, at the end of the year.

Food banks feed more and more workers

Food banks in Canada support a growing number of individuals and families who work but whose income is insufficient to meet their basic needs, reveals the document entitled Review HungerCount 2008. The study, published by the charity Food Banks Canada, said that in March 2008, 14.5% of households served by food banks across the country have employment income, which represents 1% of more than in 2007. The study explains that well-paid jobs are disappearing in Canada, particularly in the manufacturing and forestry sectors and are often replaced by low-paid, temporary or part-time income level does not cover all costs of housing, food, clothing and health. The growth of these "new poor" is found in seven out of ten provinces, except Quebec, Manitoba and Prince Edward Island Prince Edward Island. Compared to all households in Quebec who have resorted to food banks, the proportion who had a job as a main source of income has decreased from 12.6% in 2007 to 10.3% in 2008 . In March 2008, across Canada, 704 000 people visited food banks, representing a decrease of 2.2% over the previous year. In Quebec, there was some stability with 156 000 people attended. Food Banks Canada is concerned that the problem of hunger is worsening in the current economic situation and recommends that the Harper government to establish a federal strategy to reduce poverty. In particular, it is suggested to improve child tax benefits and income from work.

Ottawa going to tighten the screw to politicians and senior civil servants?

During the economic update, Thursday, the federal Finance Minister Jim Flaherty is expected to announce new measures to control the benefits and advantages of politicians and senior officials, according to a government source quoted by The Canadian Press . According to this source, who did not want to specify the details of these measures, the federal government limit the growth of budgets related to senior government officials and deputies. In the throne speech last week, there was no question of limiting the growth of wages in the public service, but politicians were not covered by these measures to reduce government spending. Ottawa prepares to tackle the worst economic climate since the early 1990s, and display a first budget deficit since a dozen years.