adplus-dvertising
Connect with us

Investment

Canadian investments in the Indo-Pacific and G20 priorities – Prime Minister of Canada

Published

 on

Canada is announcing the following investments to strengthen its engagement in the Indo-Pacific region and in support of key areas of focus at the G20 Summit in Bali, Indonesia.

Supporting sustainable infrastructure

Infrastructure Support (Indo-Pacific Strategy)

Funding: $750 million in paid-in capital for FinDev Canada

Canada will bring its development finance institution, FinDev Canada, to the Indo-Pacific region, to help support sustainable infrastructure needs. This will contribute to the availability of and access to essential services that improve lives, connect people, spur economic growth, and contribute to cleaner future. Canada’s approach will offer a transparent and inclusive development model that focuses on quality infrastructure and financial sustainability. Canada’s contribution will help reduce poverty, build climate resilience, advance gender equality, and promote the economic development of economies and communities to benefit everyone.

Protecting the environment and fighting climate change

Nature-based Solutions for Climate-smart Livelihoods in Mangrove Landscapes in Indonesia

Funding: $20 million

300x250x1

Mangroves are one of the most productive and biologically complex ecosystems on earth and play a key role in supporting livelihoods in vulnerable coastal communities in Indonesia. This initiative will support the restoration of 33,000 hectares of degraded mangrove ecosystems and protect 5,000 hectares of intact mangroves in two of the country’s provinces– North and East Kalimantan – with a focus on storing carbon to help fight climate change. It will also promote the design and implementation of reforms to better incentivize the restoration and protection of mangrove ecosystems.

Flood Impacts, Carbon Pricing and Ecosystem Sustainability – FINCAPES

Funding: $15 million

In line with the environment and climate action priorities outlined in Canada’s Feminist International Assistance Policy, this project will support Indonesia’s efforts to scale-up its climate change adaptation and mitigation efforts in key areas, in response to rising sea levels, environmental degradation, and biodiversity loss. It will support research to better inform and drive action toward strengthening flood adaptation and mitigation efforts, help protect and restore 300 hectares of mangroves and 500 hectares of peatlands, and support the strengthening of climate change policy frameworks through academic partnership, including the creation of a center of excellence for research and development on climate change policy.

Oceans for Prosperity funding

Funding: $10 million

This funding will support the Oceans for Prosperity initiative, which aims to improve the sustainable management of coral reef ecosystems and strengthen the resilience of local communities in Indonesia. Specifically, Canada’s contribution will help strengthen ecosystem-based and participative management of marine protected areas and coral reef fisheries, including by improving climate adaptation and mitigation measures. It will also facilitate the growth of micro-, small, and medium-sized enterprises in marine protected areas by improving access to markets, information, and financial services, addressing gender disparities in natural resource management decision-making, and creating economic opportunities for local communities.

Enabling Blue Carbon in Indonesia

Funding: $3 million

Coastal and marine ecosystems, including mangroves, tidal marshes, and sea grasses, store more carbon – “blue carbon” – than forests on land. This project will help Indonesia restore its blue carbon ecosystems to better adapt and mitigate the impacts of climate change and achieve its sustainable development goals. To this effect, this investment will support the full integration of blue carbon ecosystems into Indonesia’s national development and climate change strategies through technical assistance, training and capacity building, and knowledge sharing.

Protecting people’s health

Financial Intermediary Fund for Pandemic Prevention, Preparedness, and Response (Pandemic Fund)

Funding: $50 million

Canada is committing $50 million to the new Pandemic Fund – a key G20 initiative hosted by the World Bank – to address critical gaps in pandemic prevention, preparedness, and response at national, regional, and global levels. This will include funding for areas such as disease surveillance, laboratory systems, the health workforce, emergency communications and management, and community engagement.

CanGIVE – mRNA Hub – Medicines Patent Pool (MPP) – COVID-19 mRNA Technology Transfer and Manufacturing Hub Program

Funding: $15 million

Canada is allocating an additional $15 million in funding to the COVID-19 mRNA Technology Transfer and Manufacturing Hub program. This builds on $15 million in Canadian funding announced at the G20 Summit in 2021, as part of Canada’s commitment to addressing underlying barriers to equitable access of vaccines. Canada’s additional support will help advance the work of the hub for COVID-19 mRNA vaccines in South Africa, facilitate technology transfer, develop second-generation mRNA technology and an mRNA vaccine pipeline for COVID-19 and other diseases, and enhance the capacity of a network of manufacturing facilities in Senegal, Nigeria, Kenya, and Bangladesh.

CanGIVE – mRNA hub – Pan American Health Organization (PAHO) – COVID-19 mRNA Vaccine Manufacturing Platform

Funding: $15 million

Canada is allocating $15 million to strengthen vaccine production capacities in Latin America and the Caribbean to increase the manufacturing of quality-assured, safe, and effective COVID-19 mRNA vaccines. This initiative will also strengthen national regulatory systems and policies while increasing multi-country coordination across public and private sector partners.

Expanding trade

Memorandum of understanding (MOU) on Food Security and Agricultural Products and Services

In Bali, the Canadian Commercial Corporation and Indonesia’s Ministry of State Owned Enterprises signed a MOU outlining their commitment to work together to respond to food security challenges in Indonesia, including by promoting the export of Canadian potash, wheat, grains, soybeans, and other agricultural products.

MOU on Green Airport initiative

The Canadian Commercial Corporation and the Government of the Province of North Kalimantan signed a MOU outlining their commitment to work together to support the development of a new airport for freight and passenger traffic in Bulungan Regency, North Kalimantan Province. The Canadian Commercial Corporation will identify and work with private-sector Canadian exporters best positioned to deliver this project from a technical, managerial, and financial perspective.

Advancing peace and security

MoU on Counter Terrorism

The Government of Canada and the Government of Indonesia signed a MOU to support deeper cooperation on counter-terrorism through the establishment of a joint working group that will explore opportunities for training, information sharing, and joint approaches to incorporate gender equality and human rights into counter-terrorism policy.

Empowering women and girls

Build Back Equal, UN Women

Funding: $10 million

This initiative provides opportunities in the Eastern Caribbean to “build back equal” from the COVID-19 pandemic in a way that advances gender equality and the empowerment of women and girls. Build Back Equal will help increase women’s ability to participate in every sphere – in the economy, in education, and in public life – by addressing the unequal distribution of unpaid and domestic care work in communities and households, advancing sexual and reproductive health and rights through training, and ensuring care services are integrated in gender-responsive social protection systems.

Source link

Continue Reading

Investment

Weaker Orders, Investment Underscore Ailing US Manufacturing – Yahoo Canada Finance

Published

 on


(Bloomberg) — US manufacturing showed more signs this week of succumbing to the Federal Reserve’s aggressive interest-rate hikes that are taking a bigger bite out of demand and risk upending the economic expansion.

Most Read from Bloomberg

The government’s first estimate of gross domestic product for the fourth quarter and a report on December factory orders for durable goods pointed to sizable downshifts in both spending on business equipment and bookings for core capital goods.

300x250x1

The durable goods report Thursday showed orders for nondefense capital goods excluding aircraft — a proxy for business investment — dropped 0.2% in December after no change a month earlier. Over the fourth quarter, bookings for these core capital goods posted the weakest annualized gain since 2020. Shipments, an input for GDP, decreased for the third time in four months.

“Taken in tandem with the output data where industrial production has declined in six of the past eight months, it is increasingly evident that the manufacturing recession is well underway,” Wells Fargo & Co. economists Tim Quinlan and Shannon Seery said in a note to clients.

Also on Thursday, the GDP report showed outlays for business equipment dropped an annualized 3.7%, the largest slide since the immediate aftermath of the pandemic. That decline was part of a broader demand slowdown, which included a smaller-than-forecast advance in personal spending.

While GDP growth beat expectations, details of the report that offer a clearer picture of domestic demand were decidedly weak. Inflation-adjusted final sales to private domestic purchasers, which strip out inventories and net exports while excluding government spending, rose at a paltry 0.2% rate — also the weakest since the second quarter of 2020.

Last month’s retreat in core capital goods orders indicates manufacturing output, which already registered sharp declines in the final two months of 2022, may struggle to gain traction this quarter.

Read more: Weak US Retail Sales, Factory Data Heighten Recession Concerns

The slump in housing is also spilling over into producers of non-durable goods. Shares of Sherwin-Williams Co. tumbled this week after the paintmaker pointed to pressures stemming from a weak residential real estate market and inflation.

“We currently see a very challenging demand environment in 2023 and visibility beyond our first half is limited,” Chief Executive Officer John Morikis said on a Jan. 26 earnings call. “The Fed has also been quite clear about its intention to slow down demand in its effort to tame inflation.”

An accumulation of inventories only adds to the headwinds. Inventory building accounted for about half of the 2.9% annualized increase in fourth-quarter GDP. For the year as a whole, inventories grew $123.3 billion, the most since 2015.

With demand moderating, there’s less incentive to ramp up orders or production as companies make greater efforts to sell from existing stock.

In addition to the aforementioned data, the latest surveys of manufacturers show sustained weakness. Measures of orders at factories in four regional Fed surveys have all indicated multiple months of contraction.

All surveys released so far for this month are consistent with an overall contraction in activity that extends back through most of the second half of 2022.

Next week, the Institute for Supply Management will issue its January manufacturing survey and economists project a third-straight month of shrinking activity.

Most Read from Bloomberg Businessweek

©2023 Bloomberg L.P.

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Investment

Canada expected to buck trend of big investment banking layoffs – Reuters

Published

 on


TORONTO, Jan 26 (Reuters) – Some of Canada’s top investment banks plan to maintain staffing levels to meet client expectations for the same level of coverage through the ups and downs of business cycles, head hunters and industry executives said.

U.S. investment banks, including Goldman Sachs (GS.N), began cutting over 3,000 employees on Jan. 11 citing a challenging macroeconomic environment, raising fears Canadian banks may follow suit. Like their global peers, many Canadian investment banks had staffed up during the pandemic only to see dealmaking slow last year.

At Royal Bank of Canada (RY.TO), the country’s biggest lender, for instance, headcount at its capital markets division jumped by 71% over the two years ending Oct. 31, 2022 to 6,887 employees.

But in the meantime Canadian dealmaking fell 39.7% last year to $89.7 billion. That is more than the 36% drop in global deal values to $3.8 trillion following a stellar 2021, according to data from Dealogic.

Yet, Canadian banks have not announced layoffs and some even say they may increase headcount, though dealmaking in the new year is down nearly 50% to $3.2 billion from a year ago, according to Dealogic.

“Right now there is a sense that there isn’t a need for cuts in the system,” Dominique Fortier, partner at recruitment firm Heidrick & Struggles’ Toronto office, told Reuters.

“When there was an upswing in 2021, it happened so quickly that there was no corresponding increase in hiring and so I don’t see that we’ll have the same decrease in terms of headcount coming.”

Toronto Dominion Bank (TD.TO), which last year agreed to buy New York-based boutique investment bank Cowen Inc (COWN.O), expects to continue to grow its global investment banking business as it work towards closing the deal, a spokesperson said.

Desjardins, another Canadian lender, will continue to invest in its growing capital markets division, a spokesperson said.

EXPENSIVE PROPOSITION

Bill Vlaad, a Toronto-based recruiter who specializes in the financial services sector, said that while there was some nervousness around the stability of investment banking teams, Canada is unlikely to see U.S.-level redundancies aside from the annual cull of poor performers called “maintenance layoffs.”

“The U.S. is very nimble. They will go in and out of hotspots very quickly. Canada doesn’t have that same luxury and has to stay relatively consistent in coverage,” said Vlaad.

“You have a consistent group of people working…and they don’t fluctuate all that much year to year, decade to decade.”

But another down year for dealmaking could see bonuses taking a hit.

RBC, which was ranked No. 2 in Canada M&A, equity capital markets and debt capital markets last year according to Dealogic, has no layoff plans for investment banking in Canada, a source with knowledge of the matter said.

Spokespeople for JP Morgan, which topped the M&A league table last year, Scotiabank (BNS.TO) and Canadian Imperial Bank of Commerce (CM.TO) declined to comment. BMO did not respond to requests for comment.

Headhunters and lawyers say it’s less expensive to lay off bankers in the United States compared to Canada.

Howard Levitt, senior partner at employment law firm Levitt Sheikh, said Canadian investment banking employees would be entitled to somewhere between four and 27 months severance with full remuneration depending on their status, re-employability, age and length of service.

Reporting by Maiya Keidan
Editing by Denny Thomas and Deepa Babington

Our Standards: The Thomson Reuters Trust Principles.

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Investment

Weaker Orders, Investment Underscore Ailing US Manufacturing – BNN Bloomberg

Published

 on


(Bloomberg) — US manufacturing showed more signs this week of succumbing to the Federal Reserve’s aggressive interest-rate hikes that are taking a bigger bite out of demand and risk upending the economic expansion.

The government’s first estimate of gross domestic product for the fourth quarter and a report on December factory orders for durable goods pointed to sizable downshifts in both spending on business equipment and bookings for core capital goods.

The durable goods report Thursday showed orders for nondefense capital goods excluding aircraft — a proxy for business investment — dropped 0.2% in December after no change a month earlier. Over the fourth quarter, bookings for these core capital goods posted the weakest annualized gain since 2020. Shipments, an input for GDP, decreased for the third time in four months.

300x250x1

“Taken in tandem with the output data where industrial production has declined in six of the past eight months, it is increasingly evident that the manufacturing recession is well underway,” Wells Fargo & Co. economists Tim Quinlan and Shannon Seery said in a note to clients.

Also on Thursday, the GDP report showed outlays for business equipment dropped an annualized 3.7%, the largest slide since the immediate aftermath of the pandemic. That decline was part of a broader demand slowdown, which included a smaller-than-forecast advance in personal spending.

While GDP growth beat expectations, details of the report that offer a clearer picture of domestic demand were decidedly weak. Inflation-adjusted final sales to private domestic purchasers, which strip out inventories and net exports while excluding government spending, rose at a paltry 0.2% rate — also the weakest since the second quarter of 2020.

Last month’s retreat in core capital goods orders indicates manufacturing output, which already registered sharp declines in the final two months of 2022, may struggle to gain traction this quarter.

Read more: Weak US Retail Sales, Factory Data Heighten Recession Concerns

The slump in housing is also spilling over into producers of non-durable goods. Shares of Sherwin-Williams Co. tumbled this week after the paintmaker pointed to pressures stemming from a weak residential real estate market and inflation.

“We currently see a very challenging demand environment in 2023 and visibility beyond our first half is limited,” Chief Executive Officer John Morikis said on a Jan. 26 earnings call. “The Fed has also been quite clear about its intention to slow down demand in its effort to tame inflation.”

An accumulation of inventories only adds to the headwinds. Inventory building accounted for about half of the 2.9% annualized increase in fourth-quarter GDP. For the year as a whole, inventories grew $123.3 billion, the most since 2015.

With demand moderating, there’s less incentive to ramp up orders or production as companies make greater efforts to sell from existing stock.

In addition to the aforementioned data, the latest surveys of manufacturers show sustained weakness. Measures of orders at factories in four regional Fed surveys have all indicated multiple months of contraction. 

All surveys released so far for this month are consistent with an overall contraction in activity that extends back through most of the second half of 2022. 

Next week, the Institute for Supply Management will issue its January manufacturing survey and economists project a third-straight month of shrinking activity.

©2023 Bloomberg L.P.

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Trending