As construction industry leaders in Alberta are busy working to weather multiple health and economic storms, they were heartened by news that the Keystone XL Pipeline project will be moving forward.
“Keystone going ahead restores some faith that the business momentum will come back. Obviously it doesn’t deal with the current issues,” said Bill Black, president of the Calgary Construction Association (CCA). “We are not looking at an instant relief to some of the austerity that is happening. But these are the kinds of projects we know we need to restore jobs and investment confidence in the country, the region and the province if we are to have any chance of seeing business recover.”
The Keystone XL pipeline is moving ahead thanks to a $1.5 billion investment agreement from the province of Alberta. Government officials announced they finalized an agreement with Calgary-based TC Energy Corporation to provide financial support to accelerate construction of the Keystone XL pipeline starting April 1. This investment will include $1.5 billion in equity investment in 2020 followed by a $6 billion loan guarantee in 2021. The project is expected to be completed and in service in 2023.
“We have the addition of a post-COVID world to what we were already working through,” said Black. “It’s positive news, it’s money, it’s jobs, it’s investment, it’s work, it’s an opportunity for the energy industry to start flowing. The world price of oil is in the toilet, but that too in time will recover.”
While Black is encouraged that the government is responding, many members are confused if help applies to them or if it will arrive in time.
“We are trying to keep up with government announcements, we are trying to help people stay somewhat up to speed on the right practices and the emerging options they may have,” said Black. “The government is responding to the crisis, but nobody understands the qualifications for the wage subsidy. It is great to announce these things, but people’s needs are instant.
Black explained that one of the association’s members, a consulting group, put their entire team on temporary layoff because revenue dried up completely.
“You have people whose entire businesses are on pause,” said Black. “They need that relief now. The granularity of ‘how’ is not keeping up with the announcements of ‘what’.”
Alberta’s unions also praised the pipeline news.
“The Building Trades of Alberta is pleased the provincial government will invest in the Keystone XL pipeline, which will provide thousands of jobs for Albertans in the unionized skilled trades and others,” said Terry Parker, Executive Director, Building Trades of Alberta, in a press release. “Over time, it will also add billions to government revenues for important services like health care, education and more.
Parker added that the investment signals strong support for the province’s energy industry and the workers who rely on it to feed their families. He called it a much-needed boost of confidence and demonstrates the continued need for a safe, stable and secure energy supply.
Canada’s Building Trade Unions were also encouraged by the news but noted worker safety must be maintained.
“On this job, like any other work site right now, health and safety must remain at the forefront with all necessary precautions being taken surrounding the COVID-19 pandemic,” said Robert Kucheran chairman of Canada’s Building Trades Unions, in a press release. “Canada’s Building Trade Unions will work hand in hand with our contractor partners to ensure safety protocols are met and our members, and the broader community, are kept safe.”
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.
