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Canada’s lack of Indo-Pacific strategy leaves business in the dark: book

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OTTAWA — Business leaders and former diplomats are pushing the Trudeau government to finally release its long-awaited strategy for the Indo-Pacific region.

“We can’t afford to leave it too late, because the world is moving, and it’s moving quickly,” said Business Council of Canada head Goldy Hyder.

He co-edited a book released Wednesday that urges the Liberals to outline Canada’s friends, foes and priorities in a region spanning India to British Columbia.

Foreign Affairs Minister Mélanie Joly said this spring that a strategy was imminent, but her office still has no timeline for when it will be released.

The book urges Canada to be clear about how it plans to relate with China and to get serious about a military, corporate and cultural presence across the region.

“Canadian firms have made little progress in penetrating new markets while losing market share in traditional ones,” reads one essay by Canada’s former U.S. ambassador Derek Burney and senior Carleton University professor Fen Hampson.

The pair argue for China to be frozen out of investing in critical infrastructure and digital technology, and for Canada to explain its balance between human rights and trade.

Another part of the book calls out Canada’s “unwillingness to make substantial investments in building political and business relations” and overreliance on the U.S.

Hampson and Hyder along with analyst Tina Park suggest inking long-term deals to export liquefied natural gas to South Korea and Japan. Both are stable countries trying to wean themselves off fuels from the Middle East that arrive via marine zones China is increasingly seeking to control.

Hyder said in an interview that means long-term thinking to be ready for economic opportunities. He used the example of Germany tapping into LNG from Australia and Gulf states because Canada still does not have the capacity to export the fuel.

He said the businesses who make up his council would rather invest in countries Ottawa is trying to grow close to, so they can collaborate and have some certainty in a turbulent world.

“You need to know where your government is putting the emphasis on, so you can make strategic decisions as a business,” Hyder said.

Many of the 15 essays in the book titled “The Indo-Pacific: New Strategies for Canadian Engagement with a Critical Region,” argue that Canada is falling behind its peers.

For example, Australia has set targets for corporate boards to have knowledge of Asian countries and languages.

In a statement, Joly’s office welcomed the book but gave no hint of when she would launch the Indo-Pacific strategy.

“The prosperity and security of Canadians will increasingly be tied to developments in the region,” wrote spokesman Adrien Blanchard.

“This strategy will leverage Canadian strengths and expertise to advance our goals, such as trade diversification, inclusive growth, effective action on climate change and enhanced regional security.”

He noted that a multi-partisan, independent advisory committee is sharing information on everything from military issues to trade law.

“Reinforcing Canada’s engagement in the Indo-Pacific presents a historical opportunity; we will seize it,” Blanchard said.

Yet Conservative foreign-affairs critic Michael Chong noted that the Liberals have promised some form of a regional strategy multiple times in recent years.

“It has gone through so many iterations now that it leaves one’s head spinning,” he said, noting that there have been five foreign-affairs ministers in the government’s seven years in office.

“It’s reflective of a government that doesn’t have a coherent foreign policy.”

This report by The Canadian Press was first published Sept. 28, 2022.

 

Dylan Robertson, The Canadian Press

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Japan’s SoftBank returns to profit after gains at Vision Fund and other investments

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TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.

Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.

Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).

SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.

The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.

WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.

SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.

SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.

SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.

The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.

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Yuri Kageyama is on X:

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Trump campaign promises unlikely to harm entrepreneurship: Shopify CFO

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Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.

“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.

“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”

Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.

On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.

If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.

These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.

If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.

However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.

He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.

“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.

Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.

The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.

Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.

Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.

Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.

Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.

Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”

In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.

“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.

This report by The Canadian Press was first published Nov. 12, 2024.

Companies in this story: (TSX:SHOP)

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RioCan cuts nearly 10 per cent staff in efficiency push as condo market slows

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TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.

The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.

The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.

RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.

The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.

RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.

This report by The Canadian Press was first published Nov. 12, 2024.

Companies in this story: (TSX:REI.UN)

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