Canada’s spy agency has issued a warning about the national security risk posed by some foreign investment — but isn’t saying which state-owned enterprises and foreign state actors it’s particularly worried about.
The message was delivered in the Canadian Security Intelligence Service’s 2019 annual public report, tabled in Parliament today.
“Economic espionage activities in Canada continue to increase in breadth, depth and potential economic impact. Hostile foreign intelligence services or people who are working with the tacit or explicit support of foreign states, attempt to gather political, economic, commercial, academic, scientific or military information through clandestine means in Canada,” the report says.
“As difficult as it is to measure, this damage to our collective prosperity is very real.”
The report says that while most foreign investment in Canada is above-board, “a number of state-owned enterprises and private firms with close ties to their government and or intelligence services can pursue corporate acquisition bids in Canada or other economic activities.”
“Corporate acquisitions by these entities pose potential risks related to vulnerabilities in critical infrastructure, control over strategic sectors, espionage and foreign influenced activities, and illegal transfer of technology and expertise,” says the annual report.
“CSIS expects that national security concerns related to foreign investments or other economic activities in Canada will continue.”
The report is just the latest word of caution from CSIS about the rise of economic espionage in Canada. Director David Vigneault has called state-sponsored commercial espionage the “greatest threat” to Canada’s economy.
The 34-page report warns of foreign economic espionage several times, but doesn’t name the state actors involved. Earlier this year, however, the National Security and Intelligence Committee of Parliamentarians (NSICOP), a review body made up of MPs and senators, released a report specifically calling out China and Russia for running “significant and sustained” foreign interference activities in Canada.
CSIS report flags ‘incel’ movement
CSIS’s annual report identified also touched on the threat posed in Canada by violent, ideologically-motivated individuals, including those associated with the so-called “incel” online movement.
Toronto police say they’re treating the killing of a woman at a Toronto massage parlour in February as an act of terrorism after uncovering what they say is evidence suggesting it was inspired by incel ideology.
Supporters of this misogynistic online movement typically express frustration toward women over their own lack of sexual success, and sometimes threaten violence against them. Toronto police and RCMP classify it as an “ideologically motivated violent extremist” movement.
Alek Minassian, the accused driver in the 2018 Toronto van attack that killed 10 people and injured 16 others, said in a police interview he was inspired by incel ideology.
Minassian told police shortly after the attack that his actions were retribution for years of sexual rejection and ridicule by women. His judge-only trial was scheduled to begin in early 2020 but has not yet started.
CSIS says threat actors’ reliance on encrypted technology online remains an obstacle for intelligence agencies.
“They can evade detection by police and intelligence officials, which often presents a significant challenge when governments investigate and seek to prosecute threat actors,” the report says.
“Terrorist entities use cyberspace to enhance the security of their activities … Radicalization, both offline and online, remains a significant concern to Canada and its allies.”
Wednesday’s report also looked at the number of security screenings CSIS has performed over the last fiscal year as part of its mandate. The security assessments help flag security concerns linked to terrorism and espionage, and help departments and agencies with decisions about whether to grant, deny or revoke security clearances.
Through the Immigration and Citizenship, program it screened 217,400 citizen applications and 41,000 refugees last year.
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.
