[LINK] "Desert climate, urban amenities lure Canadians to Palm Springs"

Felicity Stone's Postmedia News article describing how Canadian investment has apparently come to dominate the real estate market in the California resort of Palm Springs is one article of many underlining the shift in relative economic health between Canada and the United States. Canada's relative economic health and the absurdly strong dollar have made all manner of new relationships possible.

"We all speak Canadian down here," says Palm Springs Re/ Max agent Jeff Miller. "Sometimes it almost feels like Little Canada."

Although Canadians have always vacationed in Palm Springs, low U.S. real estate prices and the high Canadian dollar mean there are now more than ever -and they're buying property.

Miller estimates 85 per cent of his sales have been from Canada over the past three years, primarily from British Columbia and Alberta. "We have a very busy market here right now," he says, "but I would say the great majority of buyers, not just for us but in general, are Canadian, whereas when the market was hot, probably the majority of the marketplace were people within California who were investing or just wanted a second home."

Since the beginning of the year, real estate agent Dick Sakowicz, also with Re/Max, has sold three properties to Canadians at prices ranging from $150,000 to $1.2 million, with more in the works. Although most Canadians purchase Palm Springs property for personal use rather than for rental income, the high foreclosure rate means a good investment for anyone able to pay $150,000 to $250,000 US cash, he says. With rents from $1,200 to $1,500 a month, cash return after expenses can be between seven and eight per cent.

[. . .]

Palm Springs' popularity is due not only to the low cost of housing. There is also its desert climate, accessibility, resort lifestyle and mid-century architecture. "Just about everybody I know has bought a house in Palm Springs," says Vancouver lawyer Carlos Brito, who purchased a three-bedroom house a couple of years ago when prices fell. "The warmth down there is easy to take, it's easy to get to, and owning property in the States is not very different from here so there's some comfort in that."

He tries to use his house one week a month. He purchased in Palm Springs because "A lot of the other desert cities, they do roll the sidewalks up at eight o'clock, but not Palm Springs. Every weekend there's an event on."

[. . .]

In November, Vancouver credit union executive Steve Canning bought a 2,000-square-foot house with private pool in a gated community in Palm Desert. He golfs, but also likes to hike and run.

Location was another factor. Even in the off-season there are frequent flights from Vancouver via L.A., and Allegiant Air offers low-priced direct flights from Bellingham, Wash. It is also an easy drive to Phoenix, L.A. and the beach in Santa Monica. Unsure how much he will use the place, he bought it with a partner who shares the maintenance costs. "I wanted to buy something in the sun," he says, "and to get your foot in the door, it was the right decision for us to go 50-50 on it."

[LINK] "Krona Rises on Franc as Traders Seek Germany Without Greece"

Using the Swedish currency as a proxy for the German says worrying things about the Euro and the German economy, but perhaps also for Sweden. Is the Swedish economy necessarily capable of supporting a highly valued currency? I hope so; it'd be an irony otherwise.

Sweden’s krona is joining the Swiss franc as a favored currency for traders seeking to profit from Germany’s economic expansion while avoiding the debt crisis roiling Europe.

The krona may climb to its highest level in more than 10 years against the euro as the fastest growth in Europe spurs the Riksbank to keep raising interest rates, according to data compiled by Bloomberg. It’s a cheaper way to participate in German growth than the traditional haven, the Swiss franc, which is the most overvalued currency against the euro and the dollar as measured by the relative cost of goods and services.

Sweden’s economy grew an annual 6.4 percent in the first quarter after 5.7 percent last year, the most in the region. Higher rates than in the euro area haven’t hurt exports fueled by Volvo AB and Ericsson AB. The krona is only “starting to approach” a “reasonable” level, central bank Deputy Governor Lars Nyberg said in an interview in Stockholm last week.

“The Swedish economy is in good shape,” said Paul Robson, a senior foreign-exchange strategist at Royal Bank of Scotland Group Plc in London. “If there is a deterioration in European financial stability then it’s realistic to believe that Sweden will do relatively better than Switzerland. Sweden is just as strong a safe-haven as Switzerland.”

[. . .]

The Swedish currency and the franc have benefited as Europe’s leaders led by German Chancellor Angela Merkel struggle to hammer out a second Greek aid package by the end of June.

Last year’s 110 billion-euro ($158 billion) rescue failed to prevent an investor exodus from Greece, which will have debt at 157.7 percent of gross domestic product this year, the highest level in the euro’s history, according to the European Commission on May 13. Ireland and Portugal also sought aid as record deficits sent borrowing costs soaring. Sweden is a European Union member that doesn’t participate in the euro.

“If you are buying the Swedish krona you are getting European growth without Greek politics,” said Nick Parsons, head of markets strategy in London at National Australia Bank Ltd. “You can make a solid case for the strength of the krona persisting and for it continuing to be one of the two strongest currencies in the world.”

[LINK] "Commercial seal hunt off Canada's East Coast one of the worst on record"

"Good" is my response to news that the seal hunt went badly. Leaving aside the bad science suggesting that seal predation is a significant factor behind the cod fisheries and the questionable ethics of Canadian government promoting dangerous crawls about the ice as an economically viable seasonal career, there's a grim humour to watching one element of the Canadian government pursue the European Union for its ban on seal product imports even as the rest of the government tries to complete a free trade deal with the European Union.

As the annual East Coast seal hunt draws to a close, federal officials have confirmed this season was one of the worst since the early 1990s, when the industry struggled to recover from a European ban on white pelts from young harp seals.

The total number of harp seals killed in the 2011 commercial slaughter was about 38,000 — less than 10 per cent of the allowable catch, set at 400,000.

The industry's latest slump is the result of a shrinking world market and poor ice conditions in the Gulf of St. Lawrence and off the north coast of Newfoundland, where harp seal mothers need large ice pans to give birth to their young.

Last year, the European Union's 27 member states banned importing most seal products, a move that has depressed pelt prices to between $20 and $30 — barely enough for seal hunters to cover the cost of fuel and insurance for their small boats.

The use of large offshore boats was banned in 1987, the same year the federal government banned the killing of whitecoats. The United States banned importing seal products in 1972.

Last week, the Canadian government said it will move ahead with its bid to challenge the latest European ban through the World Trade Organization, even though Ottawa is also trying to secure a free trade deal with the EU.

The European Parliament adopted a resolution last week suggesting the WTO challenge should be dropped before the free trade talks move ahead. Prime Minister Stephen Harper has said he hopes to complete negotiations by 2012.