Statistics Canada reported that manufacturing shipments rose 0.6 per cent to $49.9 billion in September which it is more than expected. The Toronto stock market moved up amid optimism surrounding a sweeping economic reform plan from the Chinese government and confidence that the Federal Reserve likely won’t be cutting stimulus as early as thought.

In a report issued after a closely watched Communist Party conference, China’s ruling party pledged to ease barriers to private competitors in markets controlled by state companies. At the same time, they reaffirmed that government-owned industry is the core of the economy. It left out many details of what role private or foreign competitors might be allowed in government-controlled industries such as energy, telecoms and finance. But it outlined changes clearly intended to make industries more efficient and productive by injecting more competition.

Chinese leaders are under pressure to replace a growth model based on exports and investment that delivered three decades of rapid growth. It is actually hard to control the extent of free market in the communism country since the open market somehow represents capitalism. However, in nowadays society there is no extreme social attributes anymore, all of the societies apply mixed economy. Also, as the economic globalizing, the effect of economic changes is no more isolated in certain region, just like instance in my post, the north American financial condition will be effected by Chinese policy reform.

http://www.theglobeandmail.com/globe-investor/inside-the-market/market-updates/at-the-open-stocks-rise-amid-renewed-optimism-over-china/article15456219/

Comparing to last year, the average selling price of a Canadian home was $391,820 in October, which is around 8.5 per cent increase. However, the trend also showed a split between hot markets in the West, and cooler ones in Eastern Canada.

Interestingly, the growth is almost entirely coming from Western Canada. In terms of total sales volume, the hottest markets this year are Calgary, Edmonton, and Vancouver, according to BMO economist Doug Porter. On a provincial basis, B.C. led the country with a 26 per cent increase in sales. There are more strong numbers as one moves east across the country, before starting to decline east of Ontario. The run-up in prices may not be sustainable, but there’s evidence that sales volumes are indeed very balanced.

In my opinion, the sales and average price of house in a country partially reflect the economic status. Also, the steady growth of house price suggests the cities are being attractive not only in finance but also in environment. The house market tightly connects people’s decision of living place which is an overall evaluation. With even opportunity in finance, we can conclude from the information above that the western Canada seems more suitable for living and investing than east might results from its geographical features.

http://www.theglobeandmail.com/authors/shawn-mccarthy

Sweden’s IKEA AB is becoming a global leader in solar and wind development with a target of energy independence in 2020, part of the company’s overall strategy to confront, and even profit from, looming environmental challenges.

The big-box retailer – which brought the world assemble-yourself furniture – is equipping its stores and distribution centers with solar panels and purchasing wind farms around the world to reduce its carbon footprint. The company’s green-energy push is part of a multilayered corporate sustainability plan that aims to reduce its own reliance on fossil fuels and cut costs; to work through its supply chain to improve social and environmental conditions; and to provide customers with a broad range of low-cost products that save energy, save water and reduce household waste.

IKEA said it is taking environmentalism from a premium-price niche or a marketing gimmick to a core business strategy, one that anticipates growing pressure on the global environment and resources as billions of people are expected to climb above the poverty line and become consumers in coming decades. Investments will pay for themselves in five to eight years and will provide a long-term stream of zero-emission energy as governments deal with climate change through some sort of emissions regulations or carbon levies that will drive up energy costs.

As promised, the one-child policy which is initially published in 1979 in China start to relax since most of the new Chinese parent is the only child in their family now. Under the new policy, couples in which one member is an only child will be allowed to have two children. The Chinese government takes this change as part of major reforms aimed at securing its economic future and strengthening policy ties with the United States. Besides, the government is also improving the legal system such as reducing the number of death penalty in order to increase the physical contribution to criminals. Although these changes refer to human rights reforms, they are driven by economics.

In my opinion, the one child policy has both effects on current Chinese society. The positive ones are quite obvious that it significantly control Chinese population since 1980 which was also a major world-wide issue. Thank to the policy, the world’s population-reaching-90-billion day has been delayed for at least three years. On the other hand, many analysts say the one-child policy has shrunk China’s labor pool, hurting economic growth. For the first time in decades the working age population fell in 2012, and China could be the first country in the world to get old before it gets rich. The change in family planning policy was intended to promote “long-term balanced development of the population in China

Video：http://www.cbc.ca/player/News/Business/ID/2414697880/

The fast-food giant stated that it is cutting ties with the condiment company after 40 years due to management changes in Heinz. A former Burger King CEO became head of Heinz in June after the company was bought by Warren Buffett’s Berkshire Hathaway and 3G Capital. However, the impact of the change may be tasted more overseas. Right now in America, McDonald’s only uses Heinz products in Pittsburgh and Minneapolis restaurants. In terms of the current shares, McDonald’s shares added 10 cents to close at $94.78 whereas Heinz is now privately held.

In my opinion, McDonald’s decision may due to the disagreement on their business relationships. Changes on management in a company not only change the manager seat, but also possibly changed the direction of the business. In fact, after the struggling burger king being bought by in 2010 and changed CEO, the company cost were subsequently slashed with the chain’s menu being revamped. It has been more formidable threat to long-time McDonald’s under the effect of major marketing campaign. Therefore, it is reasonable that McDonald’s stopped the relationship, however, the former friends gonna be competitors right now since Heinz and Burger King are in the same family.

It can’t be a coincidence that all of Amazon, Google and Netflix- the American digital companies doing business in Canada were seeking attention from the media the same time on Tuesday morning.

l  Amazon.ca released its Best Books of the Year with an emphasis on the four Canadian authors in the top 10, including list-topper Eleanor Catton — whose family moved to New Zealand when she was six — with No. 6 going to Claire Messud, an American author who only lived in Toronto from ages nine to 12.

l  Google announced the five cities that won something called an eTown Award based on their embrace of the Internet: Halifax, Saint-Sauveur, Que., Newmarket, Ont., Canmore, Alta. and Whistler, B.C. will each be graced with a Google-sponsored event to celebrate their status based on data collected by Ipsos.

l  Netflix announced an expansion of its deal with the National Film Board of Canada with 20 new documentary titles added to the now-renewed NFB library — presumably also accessible in the U.S.

It has been a tradition that the USA companies develop fast and expert at expanding across the border. The similarities of the two countries culture can especially accelerate the pace in Canada. The American media companies’ announcements not only show the significance of Canadian culture is steadily increasing but also it may enlarge their potential customers. The integration of the markets may be further developed by emphasizing the equal value of two cultures.

http://o.canada.com/business/amazon-google-netflix-canada/

With the planned initial public offering, Twitter has been among the most anticipated in recent years. Billons of people use it daily worldwide to vent about politics, check news headlines and follow celebrities. However, the company just confirmed that it hemorrhaged $69 million in the first half of this year, an increase of 40% from the same period in 2012.

One of the reasons for twitter’s financial shortcoming is that the company pays less attention on making profit. The executives have been focusing on adding new users and improving technical standard since being introduced the microblogging service in 2006. Not until past few years the twitter gotten serious about selling advertising which can be appears above message from users. Twitter must show that its advertising business can continue its strong growth. There are a few signs of concern. For example, ad rates—what the company charges marketers per “ad engagement”—tumbled 46% in the last quarter. The drop continued a downward spiral that started a year ago.

•  Auditors’ responsibility is to express an opinion on financial statements based on the audit.
• According to auditing standards in the native country, the auditors comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
• An audit involves performing procedures which depend on the auditor’s judgment to obtain audit evidence about the amounts and disclosures in the financial statements. It also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
• In terms of risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances.

As apple new iphone 5s debut on September 20th, there is heated discussion about apples marketing strategies. After reviewing several blogs, here are few of my thoughts.

Apple changed the ordinary into delicate with an integral concept. Once in a while, there is a trend that PC fans buying computer components to build their own system so that standard hardware for standard applications dominant the market. However, apple did more than that. Apart from being pioneer on standards, they keep reinventing not only on its own system meanwhile being original on its outlook. Take iphone 5s for instance, it carries IOS 7 operating system featured as user friendly also it promote the golden color besides black and white which is much welcomed by the Asian customers. The designs of apple products are fashionable and ingeniously constructed. No other computer can be as thin as macbook air nor can any other software match what iTunes brings to the table. Due to these factors, even though the pricing will be a bit higher, the value can be still justified.

https://www.youtube.com/watch?v=mwPWADMDEGw

There is a business ethic issue arising public attention in Chinese society. On 2013 Chinese 315 gala, which aiming at protect the consumers’ rights, Apple Company was reported having double standard on customer service between developed and undeveloped countries. In mainland China, the promise of “whole machine exchange” did not actually exchange a brand new phone. Instead, the back cover of the phone was reserved in order to avoid extending the warranty period. However, similar instances never happened in developed countries. According to investigation, no matter in US, UK, Australia or Korea, customers who qualify for the service will be exchanged the phone completely. Personally, the reason why Apple Company doing so in China is local regulation clearly states that warranty period restart on the date item being exchanged. But the “Special treatment”, especially when is is imposed on the market which increasingly important for the company, will that be a wise decision? Companies are supposed to conduct their services with the principle of equality. Even though there might be extra cost repairing expenses. In the grand scheme, company’s integrity embodied as well-round customer without any discrimination will bring about more benefits and accelerating the development on those international markets.