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The measures approved Sunday are crucial for the country to avoid bankruptcy and remain in the eurozone, but some analysts say investors will be pondering whether it really means Europe is pulling itself out of its financial crisis.

"It's going to be a very, very volatile choppy week primarily because no matter how this turns out, there's going to be this aspect of skepticism that's going to keep investors very quick to sell," Jeffrey Sica, president of Sica Wealth Management told The Associated Press.

Sica said a yes vote means a quick boost for the market before investors remember that Greece has voted for such measures in the past and continually broken its promises to make painful cuts.

On the earnings front in Canada, the gold segment will be in particular focus as three big companies report — Goldcorp Inc. (TSX:G) and Agnico-Eagle Mines (TSX:AEM) on Wednesday, while Barrick Gold Corp. (TSX:ABX) hands in its earnings the following day.

"They’re probably likely to report fairly good results, particularly when you compare them year on year," said Chris Fehr, Canadian markets strategist at Edward Jones in St. Louis.

"There is certainly going to be a strong correlation between the performance of these companies on any given quarter and the price of gold itself."

Gold prices hit a record high of more than US$1,900 in 2011 and have held steady around US$1,600 as the precious metal benefited from worries about higher inflation and the future of the euro.

"The most logical trade for the market most recently has been to flood into gold at times of extreme fear, going back to that store of value," said Fehr.

"We’ve seen central banks around the world implement very easy monetary policy. The potential for that to create attention has certainly fostered the rise in gold prices."

Major energy companies reporting include Nexen Inc. (TSX:NXY) on Thursday and natural gas company EnCana (TSX:ECA) on Friday. And like elsewhere in the segment, much has depended on what kind of energy these companies are involved in.

Oil prices have held steady around the US$100 mark, reflecting geopolitical concerns and steadily rising demand from developing countries, while abundant supplies and a mild winter in much of North America have pushed natural gas prices sharply lower.

"EnCana continues to be a good operator but we do think they will be the victim of very low natural gas prices in the near term," said Fehr.

As for Nexen, "our expectation is that production will increase as Long Lake gets brought under control," he said, referring to the company's oilsands project near Fort McMurray, Alta.

Since it started up in late 2008, the steam-driven project has consistently lagged its design capacity of 72,000 barrels of oil per day due to a litany of operational glitches.

Nexen's original partner at Long Lake, Opti Canada, filed for court protection from creditors last year and was later acquired by China National Offshore Oil Co. for $2.1 billion.

Nexen owns 65 per cent of the Long Lake development and operates it.

Fehr thinks another attractive element for the sector is that many energy stocks aren’t pricing in US$100 oil moving forward.

"We still think it’s pricing in something much lower," he said.

"We think there is a compelling opportunity within the energy sector right now. You think about the global fears that are really dictating some of this, (and) the growth of China is going to have a direct impact on the price of energy moving forward."

Also in the resource sector, investors will hear from Finning Corp. (TSX:FTT) on Wednesday. The Vancouver-based company is the world's biggest dealer of heavy construction and mining equipment made by Caterpillar Inc.

The U.S. firm last month reported that quarterly profits jumped 60 per cent to US$1.55 billion, boosted by pent up demand for new equipment and continuing growth in developing countries. And Fehr thinks those results bode well for Finning.

"When you’re selling the product of the company that is doing quite well, you’re going to participate in that trend and we think that will be the case," he said.

"They sell the equipment and then service it as well and that has high margins so it’s of benefit to them as well."

In the financial sector, traders will look to results from Sun Life Financial.

Like other insurers, Sun Life has had a tough time because of a combination of very low interest rates and weak stock market performance, which diminishes their returns and increases the size of liabilities that stretch far into the future.

Rival Manulife Financial Corp. (TSX:MFC) disappointed investors last week after reporting a fourth-quarter loss of $69 million as it booked a charge of $665 million related to low interest rates.

With files from The Associated Press

]]> http://www.metronews.ca/edmonton/business/article/1095420--traders-look-to-heavy-slate-of-earnings Sun, 12 Feb 2012 18:20:00 -0400 Malcolm Morrison, The Canadian Press http://www.metronews.ca/edmonton/business/article/1095420--traders-look-to-heavy-slate-of-earnings
Instead of applying a harsh hand to the Sino-Canadian relationship, Harper has learned to apply a gentler touch, experts say, making his second trip to the country a success for both sides.

There's been a complete rehabilitation of the political relationship, which can be seen even in the language used by both the Chinese and the Canadian side throughout the trip, suggested Gordon Houlden, director of the China Institute at the University of Alberta.

Both are now comfortable with the "strategic partnership" label, Houlden said, and the fact the Chinese made a point of acknowledging Harper's majority government is a plus as the country highly values stability.

"From the Chinese the messaging - from (Chinese media) to pandas - has been consistently positive," said Houlden in an e-mail.

Those in the room during Harper's bilateral meetings with Chinese leaders during the trip say the atmosphere was completely different than the prime minister's first visit in 2009.

It took him three years into his mandate to travel to China. Chinese leaders were already irritated with Harper for earlier conferring honourary Canadian citizenship to the Dalai Lama.

When he finally reached Beijing in 2009, he was chided by Chinese Premier Wen Jiabao for having taking too long to visit.

This time, insiders said, talks were devoid of chilly formality. And as a signal of China's willingness to engage Canada long-term, Harper was introduced to three up-and-coming Chinese political leaders over the course of the trip.

Notable though was China's decision not to have Harper meet with Chinese Vice-President Xi Jinping who will travel to the U.S. next week to meet U.S. President Barack Obama.

Xi is slated to succeed Hu Jintao as Communist Party leader this fall, then become the nation's president in spring 2013.

But Harper did meet with Vice Premier Li Keqiang, one of the rising stars, who is expected to succeed Wen in the upcoming transfer of power.

Li laid out a vision for Canada-China relations in a speech to a business forum, saying momentum was growing.

"There is a huge space for us to expand our economic co-operation and trade," Li said through a translator.

The two countries need to work at “seeking common ground while shelving differences,” he said.

The remark was interpreted as a gentle dig at Canada to ease up on its remarks about human rights issues in China.

Harper insists the two must go hand in hand and Canada-China relations had reached a place where China understands that's part of the deal when doing business with Canada.

In his keynote speech of the trip, he stressed that Canadians expect their government to uphold Canadian values in their business dealings with China and pledged to do so.

The remarks were almost identical to the keynote speech he gave during his first trip to China in 2009.

Since then, Chinese investment in Canada has boomed, now standing at $14.1 billion.

And also since then, the human rights situation in China is widely seen by observers as having deteriorated.

An 18-year-old Tibetan nun set herself on fire in western China in the latest such protest against Beijing's handling of the vast ethnic Tibetan regions it rules, an overseas activist group said Sunday.

Beijing has also been cracking down on dissidents, handing out lengthy prison terms in what some say is a bid to thwart an Arab Spring style uprising.

When asked specifically which human rights issues he'd raised with the Chinese on this trip, Harper wouldn't answer.

“I make it my habit when I’m in another country not to say anything publicly critical of that country," he said.

Paul Evans, director of UBC's Institute of Asian Research, who is finishing a book on Canada and global China, suggested Harper's trip was a return to the 2005 Paul Martin-style of managing the country's relationship with China.

In managing the human rights file, in forging personal relationships with leaders and setting the tone during talks, "this trip signals that he has returned to the traditional Canadian perspective," Evans said.

"We're in the starting blocks again after a long pause."

It's important to note that China itself is also different, said Howard Balloch, who was Canadian ambassador to the Asian country from 1996-2001.

"The economic structure has entirely changed," Balloch said, pointing to the booming demand for natural resources.

Resource exports to China have quadrupled in the last five years, and Chinese firms are now major investors in Canada's energy sector.

It's a demand Canada is happy to feed, Harper said.

"We have abundant supplies of virtually every form of energy," he told a business forum.

"And you know, we want to sell our energy to people who want to buy our energy. It's that simple."

The energy and economic focus, as well as the fact he took oil and gas CEOs along as part of his entourage suggests that Harper wants to make the energy file a showpiece of his majority mandate, said Evans.

But it needs to be a broader relationship, Evans said.

"China is not just a bilateral trading partner. It's a country that's now setting the terms of international politics. And Mr. Harper has handled this rather narrowly - this trip was about the commercial side," Evans said.

And even with that, Harper missed an opportunity, said Brian Masse, the NDP's international trade critic.

"Harper's visit to China was a missed opportunity to promote Canadian manufacturing and level the playing field," he said in an e-mail.

"Canada should be more than exporters of natural resources, for example, shipping our raw logs to then import a finished table from China, will not create the employment needed to sustain our quality of life."

-- with files from Canadian Press reporter Paola Loriggio

]]> http://www.metronews.ca/edmonton/business/article/1095503--harper-trip-highlights-canada-china-changes Sun, 12 Feb 2012 15:27:00 -0400 Stephanie Levitz, The Canadian Press http://www.metronews.ca/edmonton/business/article/1095503--harper-trip-highlights-canada-china-changes
The Canadian Auto Workers union, which represents the schedulers, said Saturday the deal was reached Friday night.

It comes just weeks after union members voted overwhelmingly in favour of strike action, if necessary.

The 75 schedulers are based in Montreal and are represented by CAW Local 2002.

The deal will be presented to them for ratification next week.

Earlier Friday, the airline announced a tentative agreement with its 8,600 mechanics, baggage handlers, and cargo agents.

]]> http://www.metronews.ca/edmonton/business/article/1094837--air-canada-reaches-deal-with-crew-schedulers Sat, 11 Feb 2012 09:32:00 -0400 The Canadian Press http://www.metronews.ca/edmonton/business/article/1094837--air-canada-reaches-deal-with-crew-schedulers
And a new audit says these overworked caretakers are themselves doing a poor job of reducing the financial chaos.

"Major deficiencies observed in (the) overall control structure present a moderate to high risk of exposure and require improvement," says the internal review by Industry Canada.

The audit examined one of the services provided by the Office of the Superintendent of Bankruptcy Canada or OSBC, the federal agency that supervises and regulates the administration of estates declared bankrupt or insolvent.

Normally, private-sector trustees in bankruptcy licensed by the agency handle the financial affairs of insolvent estates. But if these trustees are incompetent, fraudulent or die without a successor, the OSBC steps in and installs a federal bureaucrat known as a guardian trustee.

In recent years, there have been just five such guardian trustees across Canada available to rescue bad bankruptcy cases.

The files they inherit are typically a mess, with overdrawn accounts, missing records, double-counting and stale creditor payments — creating a big challenge to put things right again.

The audit looked at a sample from 950 such files in Ontario, all administered by just two guardian trustees in Toronto, helped by two public-service administrators.

The files examined for the 2010-2011 fiscal year were typically small, with an average value of about $5,000.

"More than 20 per cent of audited estate files showed financial recording considered inaccurate, not timely, and with some evidence of improper and ineffective review," says the report, among 10 major problems cited.

The auditors also found eight instances where an account balance was in the red — expressly forbidden by an agency directive against negative balances.

The October 2011 audit report — posted by Industry Canada only in the last few weeks — strongly suggests the Office of the Superintendent of Bankruptcy Canada is understaffed.

A spokeswoman for Industry Canada, the parent department of the OSBC, says the agency is putting more people in place to handle the workload.

"Additional ... staff with relevant qualifications have been assigned to the guardian trustee unit to perform administrative and trustee responsibilities," Stefanie Power said in an email response to questions.

"In the coming months, some of the current inventory is expected to be transferred to private-sector trustees who have qualified to serve as guardian trustees on a request-for-standing offer."

Power did not indicate whether the agency will be subject to the government's current downsizing exercise, which seeks savings of between five and 10 per cent from some 67 agencies and departments, including Industry Canada.

More than 80,000 Canadians filed for personal bankruptcy in the year ended Oct. 31, 2011, while another 45,000 filed so-called consumer proposals to pay off their creditors.

Bankruptcy numbers are down since peaking in 2009. But the Canadian Imperial Bank of Commerce last week said insolvencies — which include consumer proposals as well as bankruptcies — are likely to rise modestly this year because of an increase in low-paying and part-time jobs, and cuts in the public service.

Technical changes in Canada's bankruptcy law in 2008 have made consumer proposals more popular, reducing declarations of bankruptcy.

The Office of the Superintendent of Bankruptcy Canada says about 400,000 estates were under its purview in 2008-2009, a "significant increase over previous years."

]]> http://www.metronews.ca/edmonton/business/article/1094814--bankruptcy-files-badly-administered-audit Sat, 11 Feb 2012 07:30:00 -0400 Dean Beeby, The Canadian Press http://www.metronews.ca/edmonton/business/article/1094814--bankruptcy-files-badly-administered-audit
But the main criticisms which could be found in the keynote speech of his four-day tour of China weren't about the deteriorating rights situation in the Middle Kingdom.

He instead chastised environmentalists.

Harper's economic pitch to the Chinese was clear: Canada wants to sell its natural resources to people interested in buying, and it's obvious China has a need.

It was a dig at the United States for rejecting TransCanada's planned Keystone XL pipeline and it was a message the Chinese were eager to hear.

Harper has been receiving front-page coverage in local media since arriving in China earlier this week and his speech Friday night drew dozens of local and international reporters, and over 500 Chinese and Canadian business people.

Canada will sell, but won't sell out, Harper insisted.

"Canadians believe, and have always believed, that the kind of mutually beneficial economic relationship we seek is also compatible with a good and frank dialogue on fundamental principles," Harper told the dinner.

"And they demand that their government — and their businesses — uphold these national characteristics in all our dealings."

But while he stressed that Canada would continue to raise human rights issues in its business dealing with China, Harper didn't bring up any specifics during his speech.

In an interview to be broadcast Saturday Harper treaded carefully around the prospect of a free trade deal with China, an idea that Chinese Premier Wen Jiabao was warming to earlier in the week.

"There will be enormous opportunity in China if we could ever get to that stage, but at the same time not under any illusions that there would be a significant number of economic and other questions that would have to be answered." Harper said in an interview with the CBC Radio show "The House."

But Harper said his government plans to complete a study this Spring into the feasibility of a free trade pact with China.

Harper also told the CBC that trade talks wouldn't be jeopardized by bringing up rights.

"Our trade exists because the Chinese have a real interest in our trade," he said.

"That means we should take advantage of those situations. Obviously we are a guest in this country so we will raise these things respectfully."

Local news outlets reported on Friday that officials in Tibet were told to prepare for war as monks continue to set themselves on fire in protest of the rights crackdown there.

Meanwhile, a Chinese court sentenced a dissident writer to seven years in prison over a poem he wrote urging his countrymen to gather at a public square, a human rights group said.

Three other dissidents have received nine- and 10-year prison terms for subversion or inciting subversion over the last few months.

Harper's umbrage Friday was aimed at environmentalists' opposition to the oilsands, which the Conservative government has said is backed by international money.

"We uphold our responsibility to put the interests of Canadians ahead of foreign money and influence that seek to obstruct development in Canada in favour of energy imported from other, less stable parts of the world," he told the dinner.

Western leaders who've met with Chinese politicians in recent weeks have taken a far more public stand on human rights.

German Chancellor Angela Merkel attracted global attention for attempting to have dinner with a high-profile human rights lawyer while in Beijing last week.

Harper came to Guangzhou to deliver his public pronouncement on human rights following a series of high-level meetings in Beijing that led to dozens of new government and business deals between Canada and China.

Both sides have said the relationship has improved markedly since Harper's first visit in 2009, but the Chinese have also sent signals they don't want too much push back on rights issues.

Harper said he can't claim to understand the pressures facing the Chinese as they grapple with an exploding economy.

"Nor do I ignore the undeniable differences of Chinese culture and history," he said.

"However, as Canadians our history has taught us that economic, social and political development are, over time, inseparable."

The southern Chinese city of 30 million where Harper spoke Friday is an industrial hub and governed by one of the more open-minded politicians in China who is expected to be promoted within the political hierarchy this year.

Harper began the day promoting education, visiting a local school that uses a Canadian curriculum to prepare Chinese students for further education.

Around 60,000 Chinese students study in Canada each year, contributing close to $2 billion to the economy.

]]> http://www.metronews.ca/edmonton/business/article/1094041--harper-talks-oil-human-rights-on-china-trip Fri, 10 Feb 2012 23:48:00 -0400 Stephanie Levitz, The Canadian Press http://www.metronews.ca/edmonton/business/article/1094041--harper-talks-oil-human-rights-on-china-trip
The holding company, which merged the XM and Sirius firms last year, delivered a loss of $3.4 million in the three months ended Nov. 30, compared to a profit of $15.7 million a year earlier. On a per share basis, the company posted a loss of three cents, compared to a profit of four cents a year earlier.

Total subscribers increased to 2.01 million, from 1.8 million, with 1.4 million of them considered "self-paying" customers.

Revenue grew to $63.1 million from $59.2 million.

Operating results were positive in the period at $281,000 versus a loss of $4.4 million a year earlier.

The merger of XM and Sirius was completed last June, when the combined company also closed its refinancing. It now has about $146 million in long-term debt.

"We have only started to capitalize on the opportunities available to us as a merged company and are focused on further strengthening our financial results by adding subscribers, maintaining our existing subscribers and driving increased operating efficiency across the organization," said president and CEO Mark Redmond in a release.

Canadian Satellite Radio Holdings Inc. operates as SiriusXM Canada, which has more than 120 satellite radio channels.

Shares in the company rose six cents to $3.15 in midday trading on the Toronto Stock Exchange.

]]> http://www.metronews.ca/edmonton/business/article/1094142--canadian-satellite-radio-rises-to-q1-profit Fri, 10 Feb 2012 19:18:00 -0400 The Canadian Press http://www.metronews.ca/edmonton/business/article/1094142--canadian-satellite-radio-rises-to-q1-profit
Yuen Pau Woo said Friday the overture from the Chinese premier during his meeting with Harper earlier this week was somewhat of a surprise, but should not be dismissed.

On the surface, the two countries would seem unlikely economic partners. One is a democracy, the other a Communist dictatorship. One has a floating currency; the other manipulates its currency to boost exports and dampen imports; one is moving slowly to open markets, the other is among the most open in the world.

Yet the two can move to deepen their economic partnership, Woo said, as several limited trade deals penned this week shows, including a long-sought investment protection deal or FIPA.

Canada shouldn't hesitate to go as fast as China wants in pursuing a comprehensive trade deal, said Woo, president of the Vancouver-based think tank on Canada-Asia relations.

"There are two big prizes in the world when it comes to market access — we've got the United States, but we don't have China," he said in an interview. He noted Canada currently has no free trade agreements in Asia, and has no guarantees it will be accepted in the transpacific partnership block it is seeking to join.

"Look, many western countries would die to be in this position. The FIPA is peanuts compared to what might transpire through a broad-based free trade agreement."

When the idea of exploratory talks was floated earlier this week, Canadian officials sought to downplay the proposal as premature.

"We’re not going to get ahead of ourselves," reacted International Trade Minister Ed Fast.

Woo said he hoped the soft pose was for public consumption only and that officials are busy at work probing China's seriousness. He said Canada has more to gain than lose in pursuing free-trade talks with a country that will have the world's biggest economy within a decade.

Canada already has an open trading regime in manufactured goods, so a trade deal would not be overly negative to the factory sector. But Canada has a lot to gain from obtaining access to China's protected agriculture and services sector, particularly financial services, professional and business services and telecommunications.

"We have a huge untapped expertise in services and that could be a very big win for Canada," Woo said. "And I haven't even talked about resources. I'm surprised we're not jumping up and down about this."

Trade lawyer Lawrence Herman of the Cassels Brock legal firm said he sees no obvious impediments to a free trade deal, not even the currency situation, He noted that China already has a trade deal with New Zealand and is close to signing a pact with Australia, a major coal, mineral and grain supplier to China.

"I think for China it's just part of their natural evolution as a world economy." But Canada would need to get in line, he said — there are plenty of countries that want a free deal with the world's fastest growing economy.

A recent report by University of Toronto's Rotman School of Management said a free trade agreement would be beneficial but difficult to negotiate, particularly as China has shown reluctance to liberalize its services sector.

Export Development Canada chief economist Peter Hall says just engaging in the process of talks may bring benefits to Canada because it offers both sides an opportunity to discuss their differences.

Canada ships minerals, coal, potash, uranium and other resources to China and buys back electronics, machinery and other finished goods.

Many big Canadian companies — from Bombardier Inc. to Teck Resources and CAE — do business with China. Meanwhile, insurance giants such as Manulife and Sun Life do joint venture business there and the large Canadian banks are also growing operations in the country.

China is thirsty for Canadian oil and Harper has said he is anxious to build a pipeline through British Columbia that would make it possible to ship Alberta oilsands crude via tankers across the Pacific.

But launching talks would likely also face stiff opposition in Canada, both from the usual critics of free trade and some new ones.

Currently, China enjoys a three-to-one advantage in the trade flow. Chinese exports to Canada in 2011 are projected to have hit $50 billion, much in manufactured goods, while Canada's exports were expected to total about $17 billion, with resource exports quadrupling in the last five years.

A free trade deal would only worsen the trade deficit, said Jim Stanford, chief economist with the Canadian Auto Workers union.

"The thing to keep in mind with China is they have a very state-directed development program, using state money to build national champion companies that go out and conquer world markets," he said.

"I think the status quo is going to see increasing harm, but a free trade agreement on the NAFTA model would accelerate that harm."

And Harper might face a political backlash, even from inside his own ranks, given that only five years ago he and members of his government were openly criticizing China's human rights record.

]]> http://www.metronews.ca/edmonton/business/article/1094408--free-trade-with-china-realistic-think-tank Fri, 10 Feb 2012 18:55:00 -0400 Julian Beltrame, The Canadian Press http://www.metronews.ca/edmonton/business/article/1094408--free-trade-with-china-realistic-think-tank
The finance minister's statement about Old Age Security changes follows a week of opposition attacks in the Commons that the government is undermining seniors' income support for ideological reasons.

But Flaherty, speaking to reporters in Oshawa, Ont., sought to downplay the severity of changes he is expected to unveil in his upcoming budget in March.

The changes are not for tomorrow, he said.

"This is for 2020, 2025 so that people who are middle age and younger today ... can be assured that they will have these social programs properly funded, fiscally responsible, that they’ll be there for them in the future," he said.

A spokesman for the minister said later the comment should not be interpreted as setting firm dates on when such changes would take effect.

Flaherty hasn't spelled out exactly what changes to the OAS he intends to introduce in the upcoming budget, but Prime Minister Stephen Harper said in a recent interview that one option would see the age of eligibility raised to 67 from the current 65.

Other options include accelerating the claw-back provisions in the scheme, which currently pays out a maximum of $540 a month, so that benefits decline at lower income levels.

Benefits currently begin being clawed back when an senior's income reaches $69,562, with all benefits returned at $112,772.

Opposition critics continued to blast the government for sowing fear among Canadian seniors and those approaching retirement.

"I can tell you I'm getting phone calls every time Mr. Flaherty and Mr. Harper throw out another bomb. Seniors react and I know Conservative MPs are getting those calls as well," said NDP critic Peter Julian.

Liberal finance critic Scott Brison said even if the government decides to delay the implementation date, OAS will become a "ballot box question" in the next election.

The prime minister is still taking flak from critics for first raising the pension issue in Davos, Switzerland, last month rather than on Canadian soil.

But most of the opposition has formed around the government's claims that it needs to limit the growth in costs to OAS because as the baby boom generation enters retirement the costs will become unaffordable.

The chief actuary's calculation of costs look prohibitive. The drain on Ottawa's treasury is slated to triple from the current $36 billion to $108 billion in 2030.

But experts, including some commissioned by the government itself, have said the OAS and the GIS (Guaranteed Income Supplement) won't break Ottawa's bank.

Earlier this week, Parliamentary Budget Officer Kevin Page came to the same conclusion, noting that the increase on all government-funded benefits to the elderly relative to the size of the economy will only rise from the current 2.4 per cent to 3.2 per cent. That's a far cry from the over 10 per cent of gross domestic product that many European countries pay to seniors.

"The only reason they have for making changes is sustainability and that argument has been blown to smithereens," said Brison.

In his comments Friday, Flaherty said the government "cannot ignore the fact that we an aging population in Canada and we want to ensure sustainability over the long term of our important social programs, including health care ... and retirement income issues generally."

]]> http://www.metronews.ca/edmonton/business/article/1094478--cuts-to-oas-years-away-says-flaherty Fri, 10 Feb 2012 18:49:00 -0400 Julian Beltrame, The Canadian Press http://www.metronews.ca/edmonton/business/article/1094478--cuts-to-oas-years-away-says-flaherty
Details of the agreement will not be released until the union members ratify the deal and Air Canada's board approves the contract, Canada's biggest airline said Friday.

The tentative deal comes one day after the union representing the airline's pilots called for a strike vote.

Air Canada has had rocky labour relations for years but the situation with its unions has deteriorated in the last 12 months or so as the carrier tries to cut costs due to rising fuel bills and increased competition with rivals WestJet Airlines (TSX:WJA) and Porter Airlines.

WestJet plans to start up a regional carrier in Canada and Air Canada has been trying to set up a low cost carrier for holiday travellers but has run into opposition from its unions, especially the pilots.

A strike mandate after the scheduled five days of voting would put the airline's 3,000 pilots in a legal strike position early next Friday.

The strike vote doesn't mean the pilots will actually initiate a labour stoppage, but it gives the union the ability to respond to any unilateral moves by the company.

Air Canada CEO Calin Rovinescu told analysts this week that the airline still hopes to conclude a negotiated settlement despite Tuesday's expiry of the conciliation period.

In its financial report this week, Air Canada said it lost $60 million in the fourth quarter of 2011 and $249 million for the year.

A spokeswoman for Labour Minister Lisa Raitt said the pilots and Air Canada told her in a meeting Monday that there would be no work stoppage and no effect on the travelling public in the short term.

The government's past actions to prevent or limit strikes by Air Canada's customers service agents and flight attendants suggest it won't tolerate any disruptions by pilots.

But if there is a strike, WestJet said it will put on extra flights to accommodate Air Canada travellers affected by any work stoppage.

The Calgary-based carrier, which employs about 8.500 people, but is non-union, took the labour dispute at Air Canada to ratchet up the competitive pressure on the Montreal airline.

"We can appreciate that the travelling public may be frustrated with the uncertainty associated with potential labour disruptions at Air Canada," Bob Cummings, WestJet's executive vice-president of sales and marketing, said in a release Friday afternoon.

"We have been proactively planning for weeks now, with our network team collaborating closely with flight operations to provide as many incremental flights as possible."

— With files from John Valorzi in Toronto

]]> http://www.metronews.ca/edmonton/business/article/1094184--air-canada-reaches-deal-with-machinists-union Fri, 10 Feb 2012 18:30:00 -0400 The Canadian Press http://www.metronews.ca/edmonton/business/article/1094184--air-canada-reaches-deal-with-machinists-union
CIBC economist Emanuella Enenajor said the better than expected data should give a little lift to the overall fourth-quarter economic results, but will also carry over some momentum going into the first quarter of this year.

"It is a positive indicator for the start of 2012," she said.

Enenajor said recent improvement in the U.S. economy is benefiting Canada's exporters, but that isn't expected to last as the U.S. government cuts spending.

"While exports will likely be stronger in the first half of the year, we're expecting a slowdown in export activity as the year progresses," she said.

Statistics Canada said Friday that merchandise exports rose 4.5 per cent in December and imports edged up 0.8 per cent, pushing the country's trade surplus with the rest of the world up from $1.2 billion in November.

The agency said exports grew to $42 billion in December as volumes increased 4.9 per cent, continuing a upward trend that began last July. Imports increased to $39.3 billion as volumes rose 1.2 per cent.

Peter Hall, chief economist at Export Development Canada, said the results surprised him to the upside due to strength in exports to the U.S. and Japan.

"This is a year that could have gone horribly wrong because of the political disturbances in the Arab Spring and the litany of natural disasters that we had," he said.

"I can't believe how good the growth was for December, but there is good reason for it. It is substantiated in what is going on in America for the moment."

Both U.S. exports and imports posted their highest levels since October 2008 as the trade surplus with Canada's largest trading partner grew to $5.5 billion in December from $4.7 billion in November.

Exports to the United States rose 5.3 per cent to $30.2 billion with higher shipments of crude petroleum, aircraft and precious metals, while imports from south of the border increased 2.8 per cent to $24.7 billion.

Exports to countries other than the United States increased 2.5 per cent to a record high of $11.8 billion. Imports from countries other than the United States fell 2.6 per cent to $14.7 billion, a result of lower imports from the European Union.

The trade deficit with countries other than the United States narrowed to $2.9 billion from $3.5 billion in November. It was the lowest deficit since December 2010.

Enenajor noted that exports to the eurozone could be a difficult market as it is mired in recession and Canadian exports to Asia and other developing markets still only make up a small portion of the overall picture.

"We don't necessarily have the trade ties that we'd like to with emerging markets. That's gradually improving, but it is still the case that Canada has yet to really broaden its export base," she said.

The trade report came as accounting and consulting firm PwC said more than half of Canadian manufacturers surveyed feel optimistic about the prospects for the Canadian economy over the next 12 months.

The firm said 90 per cent of those asked expected revenue growth for their own companies, with 10 per cent forecasting double-digit growth.

"Industrial manufacturing CEOs are now focusing on the upside rather than the downside," said Calum Semple, a consulting partner at PwC.

"Across the board we're seeing Canadian manufacturers with positive projections associated with company growth, international sales and spending trends."

According to Statistics Canada, exports of machinery and equipment grew 9.2 per cent to $7.5 billion in December, the highest level of exports since March 2009. Shipments of aircraft, engines and parts led the gain.

Exports of industrial goods and materials rose 3.8 per cent to $10.5 billion in December. Shipments of precious metals and alloys, other fabricated materials, as well as iron ores, concentrates and scrap led the gain.

Shipments of auto products were up 6.7 per cent to $5.8 billion, the highest level since November 2007.

Passenger autos and chassis led the overall increase, posting a fourth consecutive monthly gain as a result of higher volumes.

Energy exports rose 1.7 per cent to $10.3 billion, with crude petroleum exports hitting as record high of $6.9 billion.

Imports of industrial goods and materials grew 2.6 per cent to $8.6 billion in December. Imports of automotive products rose 3.6 per cent to $6 billion on higher volumes. Imports of machinery and equipment increased 1.3 per cent to $10.9 billion.

Energy imports fell 7.5 per cent to $4.3 billion, the only sector to decrease in December. It was the second consecutive monthly decrease in the sector.

]]> http://www.metronews.ca/edmonton/business/article/1094158--exports-imports-trade-surplus-rise Fri, 10 Feb 2012 17:56:00 -0400 Craig Wong, The Canadian Press http://www.metronews.ca/edmonton/business/article/1094158--exports-imports-trade-surplus-rise