B.C. public servants and opposition political parties are calling on the province’s public sector pension fund to divest in investments in Russian companies.
In 2021, BC Investment Management Corporation holdings showed more than $450 million in Russian-owned companies. This includes $103.9 million worth of shares in the Russian state-owned bank Sberbank, $83.85 million in Lukoil, $32.3 million in Rosneft Oil, and $19.16 million in Gazprom.
An online petition from pension plan members states they “don’t want to be bankrolling (Vladimir) Putin’s regime and fossil fuels.
“There is zero justification, moral or financial, for continuing to hold shares in Russian companies, many of which are now subject to international sanctions. In line with Canada’s actions, and in solidarity with the people of Ukraine, BCI should do its part,” the petition reads.
5:11 Russia-Ukraine conflict: Trudeau, immigration minister say they’re fast-tracking applications for Ukrainians
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In a statement, BCIMC says they will not be making any changes in the investment fund. A statement from the independent corporation states they have minimal exposure to Russia with the investment currently representing approximately 0.2 per cent of total assets under management.
“BCI is complying with the applicable Canadian sanctions and has restricted the trading of Russian securities within our global emerging markets program,” the statement reads.
Premier John Horgan was asked about the issue during question period on Monday.
In his response, Horgan says his government would not invest in these Russian companies but that BCIMC is independent of government.
The premier also added that BCIMC would get the message from Question Period that all MLAs are opposed to investing in these Russian companies.
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Liberals, Conservatives find solidarity with Ukraine in its fight against Russia
“The events unfolding in Europe right are unprecedented. And a clear message from all Canadians must go forward,” Horgan said.
“This is something we would want them to act upon. But we would not want to interfere in a fund that is designed to protect trustees and pensioners. They have a board to make those decisions and we are hopeful they will.”
The BC Liberals have been calling publicly for the province to divest the investment.
Falcon also called on the NDP government to search for land titles in B.C. for any evidence of ownership interests by the top 50 oligarchs who “aid and abet” Putin.
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Price at the pump expected to shatter records in Lower Mainland
“With British Columbians united in the desire to do all we can to support the people of Ukraine as this unprovoked aggression continues, it’s vital BCIMC reconsider provincial investments that may be benefiting Putin’s regime,” Falcon said.
“While it is generally not appropriate for government to interfere in the decision-making of an independent body like BCIMC, I am urging the Minister of Finance, as the sole shareholder of BCIMC, to encourage immediate divestment from Russian-backed companies that are directly profiting from the conflict.”
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
