Re: CDN-Economy & Related FactorsMay 25th, 2020
Trudie loves everyone, especially those regimes that have horrible human rights track records.
Looks like the Libs. are getting ready to sell out Canada by all the non responses
Which begs the question who does Trudie consider as hostile?
No problem with investing in Canadian companies, using the Canadian workforce, what we have been seeing once a Chinese company takes over a company they start bringing in their own workforce. Tumbler ridge coal mine is the best example of this, they bought the mine laid off Canadian workers brought in Chinese workers at 1/4 wages. Nexen another example which actually brought this to national attention where the Harper's Gov. put in the % rule to Chinese companies ownership in Canada before the AECON bid.
The federal government says it is reviewing a Chinese mining company’s proposed $207 million buyout of a struggling gold mining company in Nunavut under the Investment Canada Act, as a high-profile case against a Chinese executive in Canada reaches a crucial point.
Shandong Gold Mining Co. Ltd., a Chinese state-owned enterprise that’s listed on the Shanghai Stock Exchange, announced earlier this month it would purchase Toronto-based TMAC Resources Inc., which operates a mine near Cambridge Bay that has been beset by operational challenges.
Ottawa declined to provide any details on why it is scrutinizing the TMAC buyout, but lawyers who practise in this area said the government can easily invoke national security concerns amid rising political tensions with China. Indeed, on April 18, the government said that as a result of the coronavirus pandemic, it would subject all investments by state-owned enterprises, such as Shandong, to “enhanced scrutiny.”
The review comes amid rising tensions between Canada and China, with the British Columbia Supreme Court expected to release a key decision on Wednesday in the extradition case of telecom giant Huawei Technologies Co., Ltd. executive Meng Wanzhou. Meng was arrested at Vancouver’s airport in December 2018 after U.S. prosecutors charged her with violating sanctions against Iran. China has pressed Canada for her release, and she denies the charges. The Supreme Court decision could lead to her release, or could start a new round of legal arguments.
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China has also retaliated by imprisoning two Canadians under suspicious circumstances.
“I think that what you’re seeing is a very interesting mix of security considerations and political considerations,” said Andrew House, counsel at law firm Fasken LLP, who served as the chief of staff to the Ministers of Public Safety and Emergency Preparedness under former prime minister Stephen Harper’s government.
House said that the Investment Canada Act allows the government to review transactions for national security reasons, without having to disclose its specific reasons.
Lawyers note that national security has no legal definition, giving the government broad authority in this area.
“National security is not a defined term in the law,” said Toronto-based Daniel Edmonstone, a partner at McMillan LLP and a member of the competition group, adding, “It means exactly what we say — neither more nor less. It’s a very flexible concept.”
There is global wariness toward Chinese investments of vulnerable companies in the West. In April, the European Union’s competition chief Margrethe Vestager told the Financial Times that member countries should buy stakes in companies to counter the threat of Chinese takeovers.
“It’s very important that one is aware that there is a real risk that businesses that are vulnerable can be the object of a takeover,” she added. “The situation now really underlines the need so we work really intensively,” she told the FT.
The location of TMAC’s mine in the Arctic, which is seen as increasingly important from a military and geopolitical perspective, could also be relevant to a national security review, said Edmonstone.
But the political sensitivity of a Chinese company buying a Canadian company while its share price is battered, could also play a role in triggering the review, he said.
TMAC, which started producing gold at its mine in Nunavut in 2017, never hit peak capacity as a result of problems with its mill. Despite US$1.5 billion in investment over the years, its costs were at the high end of the industry norm, at around US$1,100 per ounce in 2019, and it did not produced as much gold as expected.
The company has commissioned several reports about its Doris mine and expansive land package in western Nunavut, known as Hope Bay, saying it would take hundreds of millions of dollars of investment to revitalize the mine and operations.
In January, the company announced it was exploring strategic options, but its value had already declined markedly over the past year, with its share price down 75 per cent since July at $1.55.
Jason Neal, chief executive of TMAC, told the Financial Post on Tuesday that the company began discussions with Shandong Gold late last year, and was “impressed” with the company’s financial and technical capacity.
“The transaction announced earlier this month had nothing to do with COVID-19,” Neal said in a statement, “and everything to do with delivering long-term sustainable operation at Hope Bay, which measures extremely well against the Investment Canada net benefit test.”
The net benefits test under the Investment Canada Act looks at whether a deal is likely to increase employment in Canada, as well as its economic and other impacts.
Peter Glossop, a foreign investment lawyer and a Osler, Hoskin & Harcourt LLP partner, said that in the wake of the coronavirus pandemic, which has devastated many Canadian companies’ share prices, the federal government has also started reviewing nearly every transaction on national security grounds.
Earlier this month, the Justice Department proposed draft legislation that would provide an additional 180 days for the federal government to review a foreign direct investment.
While a small overall percentage of deals — Glossop estimated less than one per cent — are flagged for national security review, he noted the number rose in the 2018-19 fiscal year to nine, up from four in each of the previous two years.
“There is more tension around national security than there has been historically,” he said.
But Fasken’s House said there could also be a political element to the current security concerns.
In the past, particularly in 2017, the federal Liberal government faced political blowback after it approved two acquisitions by Chinese companies.
In March of that year, the federal government allowed China’s O-Net Technologies to acquire Saint-Laurent, Que.-based ITF Technologies Inc., which produced laser technology with potential military applications.
Later that year, in June, it allowed China-based Hytera Communications Corp. to acquire Vancouver-based Norsat International Inc., a satellite technology company that had contracts with U.S. military.
“The Conservative opposition made hay for weeks every Question Period,” said House.
But the following year, the Liberal government blocked the $1.5 billion buyout of Canadian construction company Aecon Group Inc. to China’s state-owned CCCC International Holding Ltd , citing national security.
“There’s always been a great deal of politics happening in the background,” said House.
CANADA-Prime Minister Justin Trudeau will continue today to make the case for a co-ordinated global response to cushion the economic impact of the COVID-19 pandemic on the world's poorest countries.
He'll be among the leaders and heads of state to deliver remarks during a virtual summit of the Organization of African, Caribbean, and Pacific States (OACPS).
Among other things, he is expected to promise that Canada will partner with developing countries, which stand to be the hardest hit by the pandemic, and help to rally the world behind measures like debt relief to help them survive the crisis.
That is similar to the message Trudeau delivered last week while co-hosting a major United Nations summit, alongside UN secretary general Antonio Guterres and Jamaican Prime Minister Andrew Holness.
Without a global co-ordinated recovery plan, the UN estimates the pandemic could slash nearly US$8.5 trillion from the world economy over the next two years, forcing 34.3 million people into extreme poverty this year and potentially 130 million more over the course of the decade.
While no country has escaped the economic ravages of the deadly novel coronavirus that causes COVID-19, developing countries, already in debt distress before the pandemic, cannot afford the kinds of emergency benefits and economic stimulus measures undertaken in wealthy, industrialized countries like Canada.
Prior to the UN summit, Trudeau argued that ensuring poorer countries survive the crisis is not just the right thing to do, it's in Canada's own self-interest.
"Canadian jobs and businesses depend on stable and productive economies in other countries, so it matters to us how everyone weathers this storm,” he said last week.
Today's summit is to be chaired by Kenya's president, Uhuru Kenyatta. OACPS is composed of 79 African, Caribbean and Pacific states, many leaders of which are expected to take part.
Trudeau is positioning Canada as a leader in the push for a global recovery plan just as the country is competing for one of two coveted, non-permanent seats on the UN Security Council later this month against Norway and Ireland.
Canada is running on a platform of trying to help rebuild the post-pandemic world.
Well as Jinentonix stated in his post, you need to read closely as to what was said and he's right! Not very good. It's amazing how BMO is "parroting" the government party line stating that things are basically looking up - NO - they're not!! The way they are making statements is disingenuous at best because they know full well that most people won't look at what they are actually saying. They just look at the "big" numbers and figure - wow - 66,000 jobs were created not realizing that those jobs are Mc D jobs and over 32,000 well paying jobs were lost - apparently nothing worth writing or explaining.
Trudie loves everyone, especially those regimes that have horrible human rights track records.
Canadian real estate continues to be the rock our economy stands on.
73% is the average home equity in this country. Only 4% have less than 10% equity.
That is why we easily withstand things like the 2008 crash and the 2020 covid depression.
That home equity will currently get you $500K for about $1,000 a month.
I think there a lot of Canadians with a lot of home equity who are currently trying to figure out what to spend it on.
I expect the wealthy to be spending more money than usual on more things than usual because all their little hopes and dreams for world travel in their golden years have been shattered.
BOC keeps the interest rate at .25%
They are open to lowering it further.
The banks are not really passing the savings along to the public so the entire stimulus effort is half-assed at best.
Canadian bankruptcy hits historic low in April.
How could bankruptcy in Canada be down 43% in April 2020 from April 2019?
Because all these Big Liberal government bailouts are working.
Deflation has already started... Cost of many goods/services heading North and value of things like your home are heading South
An RV dealer said "we don't have to worry about Albertans and Americans filling up all the camp sites so it may be the best year ever to have a BC Staycation."
He may be right.
Are they? Or just delaying the inevitable at huge expense to taxpayers.
Trudeau pushing forward on covid funding in the face of certain parliamentary delay.
Hopefully not too many people will have to suffer in order to allow Mr Scheer and Mr Singh to make their little campaign pitches.
If Trudeau (or other MP's) can wade into a crowd of Thousands of Protesters for Selfie Photo Op's, then they can wade into Parliament to debate issues like a real democracy. Justin Trudeau's front stoop at 9:15AM daily isn't Parliament where real debate can happen regarding our futures. That's a real problem coming from a minority Gov't bypassing democracy. Twisting that into a "But who will think of the Children" blanket call is indigenous at best.
Trudeau is pushing forward on a lot of things with little over-site & we didn't elect him as the King of Canada last Fall.
According to the capitalism you claim to adore whilst utterly failing to comprehend, there are no friends or enemies. Only money.