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Canada, Ethiopia starting talks towards investment agreement: Trudeau – National Post

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ADDIS ABABA, Ethiopia — Prime Minister Justin Trudeau says Canada and Ethiopia are preparing to start negotiations towards a foreign investment protection agreement.

Trudeau is in Addis Ababa to meet with Prime Minister Abiy Ahmed and President Sahle-Work Zewde.

He spent more than two hours with Abiy, including more than an hour in a private tour of a new public park and zoo on the grounds of the prime minister’s residence.

He also had a working lunch with Zewde at Jubilee Palace.

Both meetings are part of Canada’s agenda to secure support from many African nations as it vies for a seat on the powerful United Nations Security Council in June.

However, Trudeau says this trip is about more than just the UN and told both Abiy and Zewde he sees immense potential for Canada and Ethiopia to help each other grow.

He says that’s why the two nations are about to start working towards an investment agreement.

“This visit is a chance for us to take our partnership and our friendship to the next level,” Trudeau said Saturday.

“We have an incredible opportunity before us.”

We have an incredible opportunity before us

FIPAs, as they are often referred to in official circles, encourage investment between two nations. Canada already has at least two dozen FIPAs in place.

Ethiopia is not a big economic partner for Canada currently, with just $170 million in two-way trade in 2018, more than three-quarters of it Canadian exports.

However, Ethiopia is the fastest growing economy in Africa and one the five fastest in the world.

Trudeau also revealed a $10-million contribution to the African Union Commission for gender equality and women’s empowerment. He gave a speech at a breakfast hosted by the African Union and the funds were well-received by the mostly female audience. Trudeau is the first Canadian prime minister to attend an African Union event.

The breakfast was a side event to the African Union’s 33rd session in Addis Ababa on Saturday, but many African scholars in Canada say Canada’s efforts to advance its relationships in Africa comes very late in the game.

That was a feeling echoed by the head of one of Canada’s biggest challengers for two seats available in the group of countries Canada is in. Norwegian Prime Minister Erna Solberg said Norway and Canada are pursuing African support in similar ways but that Norway has been a steadier partner over the years.

“I think one of the differences, of course, is we have been on the steady same path for a very long time, so they know us,” Solberg said.

Canada’s economy is larger but Norway proportionately spends more on foreign aid and international efforts, she added.

Cabinet ministers accompanying Trudeau insist the relationship with Africa is not last-minute, nor is it solely because Canada needs many of Africa’s 54 votes at the UN to win the seat. There are two seats up for grabs and Canada is vying for them against Norway and Ireland.

“It’s not like we were absent and now we are showing up,” said Families Minister Ahmed Hussen. “Nothing could be further from the truth.”

Solberg also met with Abiy and Zewde on Saturday. She also was in Ethiopia a year ago when she had talks with Abiy. This is Trudeau’s first visit to Ethiopia.

Irish Taoiseach Leo Varadkar visited Ethiopia and met with Abiy in January.

Where Abiy’s vote will go at the UN is unknown but he was warm to Trudeau. They spent more than two hours together at a private meeting, an expanded bilateral meeting with officials and ministers from both countries, and the tour at Unity Park.

The public park and museum was previously private space and is one of Abiy’s pet projects. At the end of the tour, Abiy and Trudeau had coffee and shared some Ethiopian food, and continued talking for more than 20 minutes.

Abiy told Trudeau that Ethiopia is grateful for the diplomatic relationship between the two countries

Abiy told Trudeau that Ethiopia is grateful for the diplomatic relationship between the two countries, which began more than 50 years ago. But he added that Canada’s influence actually began much earlier than that with missionaries and Canadian aid dollars.

“We are very much grateful about it,” he said.

Trudeau told Abiy he is “much more interested” in building economic partnerships going forward.

Trudeau also met with African Union Commission chair Moussa Faki Mahamat, Rwandan President Paul Kagame and Ulisses Correia e Silva, the prime minister of Cape Verde.

Later on Saturday, he was to attend an African Union panel discussion about the “blue economy” which refers to the use of water bodies for sustainable economic prosperity.

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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)

The Canadian Press. All rights reserved.

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S&P/TSX composite up more than 150 points, U.S. stock markets also higher

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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.

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Crypto Market Bloodbath Amid Broader Economic Concerns

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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.

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