Canadian Financial System Robust But Highly Susceptible to Euro Crisis - DailyFx Canadian Financial System Robust But Highly Susceptible to Euro Crisis - DailyFx

Thursday, June 14, 2012

Canadian Financial System Robust But Highly Susceptible to Euro Crisis - DailyFx

Canadian Financial System Robust But Highly Susceptible to Euro Crisis - DailyFx

THE TAKEAWAY: [Bank of Canada’s Financial System Review released] > [High risks to Canadian economy if euro crisis worsens] > [USDCAD little changed]

In its semi-annual Financial System Review released today, the Bank of Canada (BoC) cited continued robustness of Canada’s financial system and relative stability in domestic credit markets despite the fragile global environment. However, the Bank warned of high dangers to the Canadian economy if the European sovereign debt crisis worsens, emphasizing that worsening conditions in the euro zone could cause “major shock” to Canada.

The sources of major risks to the stability of Canada’s financial system remain broadly the same as those reported in the December 2011 Review, as outlined below:

  • Further escalation of the euro-area sovereign debt crisis;
  • An economic slowdown in other advanced economies;
  • Financial stress in the Canadian household sector;
  • A disorderly resolution of global current account imbalances; and
  • Excessive risk-taking associated with a prolonged period of low interest rates.

Should the euro debt crisis continue to intensify, further weakening in global economic would fuel sovereign fiscal strains and heighten risk aversion. This would exacerbate pressures on bank balance sheets and ensuing tightening of lending conditions would further dampen global economic growth. Diminished growth prospects would foster expectations of continued low interest rates, possibly eroding the financial positions of life insurance companies and pension plans while boosting household borrowing in Canada.

The Bank stated that mitigation of risks to the global financial system requires a number of policy actions, with containment measures in the euro area at the forefront of priorities. Mitigation measures abroad include adequately capitalizing euro-area banks, reinforcing financial firewalls, enforcement of structural and product market reforms, and a clearer path for risk mutualization within the European monetary union. Globally, current account imbalances must be addressed to help foster sustainable and balanced global economic growth.

Domestically, “the high indebtedness of the household sector and elevated valuations in the housing market require continued vigilance”. In regards to broader financial reform, Canadian banks plan to implement Basel III capital rules as a key priority, which will help build a resilient market infrastructure in future.

USDCAD 1-minute Chart: June 14, 2012

Canadian_Financial_System_Robust_But_Highly_Susceptible_to_Euro_Crisis__body_Picture_1.png, Canadian Financial System Robust But Highly Susceptible to Euro Crisis

Chart created using Market Scope – Prepared by Tzu-Wen Chen

The loonie remained largely unchanged against the greenback, as few developments have come out since the Bank’s December 2011 Review. At the time of this report, the USDCAD pair was trading at C$1.0246 to the dollar.

--- Written by Tzu-Wen Chen, DailyFX Research



Can You Make Money by Buying From Facebook's IPO? - huffingtonpost.co.uk

The answer is simple. Only if they can turn their organically grown database into a revenue stream channel the $100 billion valuation makes sense and one can make money out of it. If you think this is a good answer, think again?

This answer fails to understand the influential power social connections can have long-term. By thinking you can't make money since users aren't clicking on ads you are missing the whole point. In the online world we are all used to measuring everything from click through rates to sales in real time, however with social sites like Facebook one must have a holistic approach in order to reap the benefits which lie underneath the surface. It's a bit like saying we shouldn't invest in customer service because it doesn't produce returns; while you may not be able to track the return on investment on your customer service initiatives like you can with your marketing campaigns, that's not to say that investing in customer service won't yield positive returns.

A new report by internet marketing research company Comscore suggests that social media marketing can show a positive return on investment by directly influencing sales, but it has to be measured in a different way to conventional online marketing since it's not ads that are driving sales, building brands and creating customer loyalty. It's the very act of being social and engaging with your customers. That means understanding the link between Facebook's various ad units with what Comscore calls free earned media, which is essentially the posts and other actions by brand and consumers on the social network.

The Comscore report cited examples of how advertising on Facebook could be traced to sales increases. For example, by tracking consumers who were Starbucks fans on Facebook against a control group of shoppers who weren't exposed to those messages, Comscore found that over a four-week period, 2.12% of the brand's fans and their friends made a purchase at the coffee shop. That's 0.58 percentage points higher than the 1.54% for the control group. That suggests that fans and their friends made 37.7% more purchases than those not exposed to the brand's earned media.

So all in all, can we buy Facebook shares at the current price and still make money. While the answer seems positive, you may want to wait as the current scepticism around Facebook's potential to deliver a return on investment may result in share prices dropping short-term, only to start seeing an upward movement medium to long term but we will most probably have to wait several years to witness this change. I guess the question is, if social media advertising is still in its infancy, where is the social media stock market? You can't expect for investors to understand now what most marketers still don't.

Social media will create a revolution in how we behave ourselves and eventually will start the next bull market, but not for at least three to five years. Social media gives the ability for everybody to be in instant communication with everyone else, and that's very powerful. We must not forget that Facebook is the pioneer of the social media generation, and remains as the most powerful social media network in the planet.


Follow Vashi Dominguez on Twitter: www.twitter.com/VashiDominguez



Announcing New Google Plus (G+) and Google+ Local Training For Business “What … - YAHOO!

Google has converted 80 million Google Places pages worldwide into Google+ Local pages. Google+ trainers Yifat Cohen and Maya Mendoza launch new G+ and Google+ Local courses to teach business owners what they need to know and do to generate leads and increase profits.

Austin, Texas (PRWEB) June 14, 2012

Google Plus is rapidly & completely changing Search and the way people find things online. And as Google integrate all Google services into Plus (G+) the question for every business must be: What will this mean for your business?

The latest change has seen the demise of Google Places. Google Places (Maps) has been a powerful Search & Reviews ally for companies looking to boost their local popularity. Now Google is taking the first step to eradicate millions of Google Places pages and morph then all into new Google+ Local pages.

Why is Google making these changes?

Maya Mendoza, Social SEO trainer and founder of Milagro Fusion Marketing said:

“This is Google's move to ramp up social integration. Fundamentally Google+ Local Pages for business are an evolution of Places pages with a more powerful and comprehensive system for customer and client reviews”

Google believe that the new Google+ Local will bring people more relevant and better trusted results from their search queries.

Mendoza continues “This really is quite an exciting shift and businesses can expect a lot more radical changes to come".

As with any update there are bugs and lingering issues as a result of the major update. It appears that the transition from Google Places into the new Google+ Local pages have left many Google business users in a state of confusion and disarray.

For business owners who use Google Places already and understand the power that it brings to local search this integration with Google+ Business Pages has generated both concern and excitement.

When asked how Google Places owners have responded to the changes Hangouts Host and G+GoTo Gal Yifat Cohen said:

"The main concern Google business users have expressed is that the changes came with no apparent warning. Many are worried about how Google+ Local will effect their search results and page rank and do not know what steps to take to maximise this opportunity."

Cohen continued "Although Google are promising increased merchant benefits from the new business rating system, and are planning to roll out many more helpful merchant features, this radical and sudden change to how they generate business has rocked the boat"

Both Cohen and Mendoza agree that the sudden switch over to Google+ Local pages raises a lot of questions for business owners. They have joined forces to bring effective Strategic Google Plus (G+) and Google+ Local Training & Services to their clients and a wider business audience across the USA and UK.

“The message that business can no longer afford to ignore the impact of social search is not getting across to people” says Mendoza “both Yifat Cohen and I are on a mission to help people get on board and benefit before their businesses get left behind”.

Business owners who wish to get more information about the upcoming trainings may register their interest by completing a short form at this Google Plus Training page

Patrick Tuttle
Milagro Fusion Marketing
443 807 8383
Email Information



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