Premier Jason Kenney, seen here on Feb. 24, 2020, will play host Monday to a conference call with a new economic advisory council, chaired by Calgary economist Jack Mintz.
CODIE MCLACHLAN/The Globe and Mail
Alberta is set to release an economic stimulus package this week as the province has been hit hard from the COVID-19 pandemic and plunging oil prices.
Premier Jason Kenney will play host Monday to a conference call with a new economic advisory council, chaired by Calgary economist Jack Mintz, as the province hashes out the best way to give its teetering economy a fiscal shot in the arm.
At a news conference on Friday, Mr. Kenney said the goal was to announce an initial package of assistance by the end of this week.
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With fiscal year-end approaching, along with spring breakup for oil drilling rigs and the start of construction season, Mr. Kenney said his government is moving as quickly as possible on an economic rescue package.
“I expect a lot of very important economic decisions to be made for the Alberta economy by business leaders over the course of the next two and half weeks. We want them to know the government of Alberta will be there as much as we reasonably can,” he said.
The Premier and Energy Minister Sonya Savage have met with the energy sector and will continue talks with other sectors in the coming days to nail down the government’s next moves.
Alberta leans heavily on non-renewable resources, which are forecast to comprise around 13 per cent of provincial revenue in the 2019-20 fiscal year.
But mid-sized energy producers are facing a liquidity crisis as lenders tighten their purse strings and the per-barrel price of oil withers. Western Canadian Select crude has hovered just above $30 over the past few months, but plunged below $20 last week in the face of decreased demand because of the new coronavirus spread and an escalating Saudi-Russia oil price war.
On Friday, the federal government announced that the two Crown corporations that lend to Canadian businesses – Export Development Canada (EDC) and Business Development Bank of Canada (BDC) – will boost their loans by $10-billion, as part of a strategy to inject additional liquidity into the economy.
While details on that plan are yet to be released, federal Finance Minister Bill Morneau said small and medium businesses would receive most of the funds. Smaller companies are facing the prospect of severe hits to cash flow as social distancing hurts the retail and hospitality sectors, in particular. Loans from EDC and BDC could provide a financial bridge during the fight against the virus.
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Mr. Kenney said he was encouraged by the move, but that his government is doing the calculations to figure out if it is adequate support for the already-struggling energy sector. If not, his government will pursue additional credit tools.
His United Conservative government is considering an instrument similar to the Troubled Asset Relief Program (TARP) rolled out in the United States during the global financial crisis. Under TARP, the U.S. Congress authorized US$700-billion to bail out financial companies and automakers.
Alberta Finance Minister Travis Toews said Friday he has raised energy-industry concerns with Mr. Morneau, and is working with Alberta’s financial institutions to ensure that the province is prepared to meet credit and liquidity challenges.
Mr. Kenney stressed that all areas of Alberta’s economy – including tourism, hospitality and travel – will be hit by the pandemic, and said his government is “looking at a whole suite of measures” to help those industries.
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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 also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
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 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.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
