‘There are vulnerable businesses that are going to be important to our recovery who are perhaps exposed to foreign purchases’
Investment
Canada steps up scrutiny of foreign investment in essential industries in coronavirus pandemic – The London Free Press
Canada says it will apply extra scrutiny to foreign investment in companies that are related to public health or that supply critical goods during the pandemic.
“There are vulnerable businesses that are going to be important to our recovery who are perhaps exposed to foreign purchases,” Prime Minister Justin Trudeau told reporters in Ottawa Sunday. “We will be strengthening our oversight and paying close attention to foreign investment in this country to ensure there aren’t people taking advantage of this crisis.”
On Saturday, his government released a policy statement saying it will scrutinize “with particular attention” any investment by state-owned firms or by private investors with close ties to foreign governments — regardless of the size of the investment.
“Some investments into Canada by state-owned enterprises may be motivated by non-commercial imperatives that could harm Canada’s economic or national security interests, a risk that is amplified in the current context,” the statement said.
The move follows the actions of other countries to tighten investment rules during Covid-19. Australia, for example, said last month all foreign takeovers will need government approval, no matter how small.
Canada will leave the enhanced measures in place until the economy recovers from the pandemic, according to the policy statement.
The shutdown of non-essential businesses and social distancing measures to curb the spread of the virus has brought the Canadian economy to a near halt and caused company values to plummet. Canada’s benchmark S&P/TSX Composite Index is down almost 16 per cent since the start the year, even after four straight weeks of gains.
Economy
S&P/TSX composite down more than 200 points, U.S. stock markets also fall
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)
The Canadian Press. All rights reserved.
Economy
S&P/TSX composite up more than 150 points, U.S. stock markets also higher
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.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
Investment
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