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‘Robust’ investments coming for North American defence: Anand

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OTTAWA — Defence Minister Anita Anand is promising a “robust package of investments” for North America’s aging defences in the coming months, as Ottawa faces growing pressure to boost military spending and work with Washington to protect the continent.

Anand made the commitment during an appearance before the Senate defence committee on Monday, only days before the Liberal government is to unveil a federal budget that many expect will include new money for the Canadian Armed Forces.

“The current defence and security climate also has underscored that we need to do more to bolster our defences in Canada and North America at large,” the minister told senators in reference to Russia’s attack on Ukraine.

“To that end, in the coming months, we will be bringing forward a robust package of investments to bolster our continental defence in close co-operation with the United States.”

Yet defence officials appearing before the committee after Anand could not say when actual work could begin on modernizing the North American Aerospace Defence Command, which is controlled by both the U.S. and Canada.

That is despite military officials and experts having warned for years about the state of Norad, parts of which are now obsolete as Russia and other adversaries have developed more advanced weapons.

It is also despite Canada facing pressure from the NATO military alliance to increase its defence spending, with an injection of funds for Norad seen as the easiest and most likely scenario when the Liberals unveil their budget on Thursday.

That’s because while the government has already planned and costed out most expected military purchases over the next 15 years, there has been no budget or significant work started on Norad modernization.

Defence Department deputy minister Bill Matthews told senators the specific timeline would depend on when officials get direction from Ottawa and Washington on what they want with Norad in its new form.

While Matthews didn’t spell out any specifics, Canada and the U.S. have in the past differed on ballistic missile defence. The new system is expected to detect and potentially eliminate threats from air, water, space and cyberspace.

“You’re looking at a multi-year endeavour here, obviously working hand in hand with our allies to prioritize and land on specific plans,” Matthews said. “But until there’s been formal decisions made, we cannot be more specific than that.”

Successive Canadian and American governments have been promising for years to modernize Norad, which was first created during the Cold War to protect against a Soviet attack.

Yet despite increasingly urgent warnings from senior military commanders on both sides of the border about the need to address a growing number of gaps in North America’s defences, many are still waiting for Canada to act.

During a trip to Ottawa in December, Norad commander U.S. Gen. Glen VanHerck said he was awaiting political direction on upgrading Canada’s key contribution, a string of radars built in the Canadian Arctic in the 1980s called the North Warning System.

Military officials have been cautioning for years that the system, built to detect Russian bombers approaching North America from over the Arctic, is obsolete because of the development of missiles with increasingly longer ranges.

The U.S., meanwhile, has been pressing ahead on a number of fronts, including the deployment of new missile interceptors and artificial intelligence to merge data from a variety of different sources to detect an attack.

Anand told the committee she has had several discussions with U.S. Defense Secretary Lloyd Austin, and pointed to investments in last year’s federal budget that have been used to research long-range communications and radar.

“Our efforts to keep our countries and our continent secure are closely intertwined, including through Norad and our joint efforts in the Arctic region,” she said. “It’s important we remain full and equal partners.”

Chief of the defence staff Gen. Wayne Eyre also spoke about his “instructive” visit to Norad headquarters in Colorado last week.

“The threat to our continent is very clear and is rapidly advancing as we take a look at technological advances that our adversaries are making,” he said. “We are no longer as safe as we once were in North America.”

Anand also revealed during the committee hearing that she expects to receive a report on sexual misconduct in the military from retired Supreme Court justice Louise Arbour on May 20.

The report, which is intended to identify ways for the military to better handle such cases and issues, is supposed to be made public one week later.

This report by The Canadian Press was first published Apr. 4, 2022.

 

Lee Berthiaume, The Canadian Press

Economy

Energy stocks help lift S&P/TSX composite, U.S. stock markets also up

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TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.

The S&P/TSX composite index was up 34.91 points at 23,736.98.

In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.

The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.

The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.

The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.

This report by The Canadian Press was first published Sept. 17, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

S&P/TSX gains almost 100 points, U.S. markets also higher ahead of rate decision

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TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets climbed to their best week of the year.

“It’s been almost a complete opposite or retracement of what we saw last week,” said Philip Petursson, chief investment strategist at IG Wealth Management.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

While last week saw a “healthy” pullback on weaker economic data, this week investors appeared to be buying the dip and hoping the central bank “comes to the rescue,” said Petursson.

Next week, the U.S. Federal Reserve is widely expected to cut its key interest rate for the first time in several years after it significantly hiked it to fight inflation.

But the magnitude of that first cut has been the subject of debate, and the market appears split on whether the cut will be a quarter of a percentage point or a larger half-point reduction.

Petursson thinks it’s clear the smaller cut is coming. Economic data recently hasn’t been great, but it hasn’t been that bad either, he said — and inflation may have come down significantly, but it’s not defeated just yet.

“I think they’re going to be very steady,” he said, with one small cut at each of their three decisions scheduled for the rest of 2024, and more into 2025.

“I don’t think there’s a sense of urgency on the part of the Fed that they have to do something immediately.

A larger cut could also send the wrong message to the markets, added Petursson: that the Fed made a mistake in waiting this long to cut, or that it’s seeing concerning signs in the economy.

It would also be “counter to what they’ve signaled,” he said.

More important than the cut — other than the new tone it sets — will be what Fed chair Jerome Powell has to say, according to Petursson.

“That’s going to be more important than the size of the cut itself,” he said.

In Canada, where the central bank has already cut three times, Petursson expects two more before the year is through.

“Here, the labour situation is worse than what we see in the United States,” he said.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

— With files from The Associated Press

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

S&P/TSX composite down more than 200 points, U.S. stock markets also fall

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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.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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