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Deliveroo and Just Eat deals show politics rules trustbuster – Financial Times

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You can take the man out of politics, but you can’t take politics out of the man. Two big Competition and Markets Authority decisions of the past week — first to wave through Amazon’s investment in Deliveroo and then Takeaway.com’s takeover of Just Eat — have CMA chair and ex-MP Andrew Tyrie’s fingerprints all over them.

Both were controversial cases for the trust buster to take on. Under previous iterations of the competition watchdog, the deals would probably never have been called in.

The CMA’s recently-found desire to be the biggest, baddest regulator in the fightback against the dominance and spread of big tech was no doubt the main reason why Deliveroo’s funding round got stuck in a year-long regulatory review process. The grounds for blocking it looked flimsy. Would Amazon, which stopped delivering takeaways in 2018, have a sudden change of heart if its deal with Deliveroo was blocked and launch a fierce new competitor? Could Deliveroo, with its sideline in corner shop grocery deliveries, constitute a potential competitor to Amazon Fresh? Really?

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But once the CMA had made that case for calling in Deliveroo, it was hard-pressed to waive through the Just Eat takeover, a same-sector deal where the acquirer, Takeaway.com, had also recently quit the market.

Andrew Tyrie, CMA Chair and former Conservative MP © PA Archive/PA Images

Covid-19 gets the CMA off the hook. Phew. It would be a bold but deaf regulator that made trouble for the businesses that have enabled restaurants to keep cooking and home-cooks in lockdown to take a night off. Easy to get dewy-eyed and dub them essential to keeping the home fires burning. By giving the Deliveroo deal the (provisional) green light on the grounds that it would fold if not, the watchdog avoided being spatchcocked on the merits of its arguments. And once Deliveroo’s deal was through, it was hard to hold out on Takeaway’s Just Eat tie-up.

In clearing both, the CMA proves to the government that it will not make political problems over points of principle. That does not mean there are not problems with the Deliveroo decision fudge, though.

The CMA has previously been loath to approve deals on the grounds of the “failing firm” defence used by Deliveroo. Plenty of companies laid low by Covid-19 will argue that if Deliveroo clears that hurdle, they should be allowed to tie-up with rivals too. The CMA can’t let them win that argument and keep its tough guy image. The watchdog must balance its political heart with its legal brain if it is to be credible and consistent. Here, the heart has ruled the head.

De Beers draws warmth from Anglo

The diamond industry is on ice, from beginning to middle to end. The market for diamonds — also known as “ice” because their dazzle is cold and they draw heat from warm objects — has been hit hard by coronavirus. De Beers, which with Alrosa of Russia unearths more than two-thirds of the world’s sparklers, has certainly drawn heat from its owner, Anglo American. On Thursday, it lowered production guidance for the year by a fifth.

Last month De Beers canned its regular sale of diamonds in Botswana because buyers from Israel, India and China could not travel. It is unlikely travel will unfreeze in time for the next auction in a month or so.

The market is suffering from top to bottom. Consumers and merchants from Antwerp to China are in lockdown or emerging from it. So too are the cutters in India, who buff up about 90 per cent of all mined gems. Most producers, whether in Southern Africa or Canada, have been forced to put mines on care and maintenance. The longer the lockdowns last, the harder and more expensive it will be for them to ramp production back up.

The market was already fragile. Supply has been abundant. Post-millennial generations are not wedded to solitaires in the way their elders were. Credit-squeezed diamantaires have been working through their inventories rather than buying new stock.

Big miners such as De Beers have put brakes on production. Nonetheless, prices had fallen a fifth over a year even before Covid-19 hit. Signs of improvement in late 2019 evaporated in March. Alrosa said last week that average prices of its rocks fell 17 per cent quarter on quarter.

Alrosa and De Beers can further cut supply to protect prices and weather the cold. Smaller miners with weak balance sheets — notably heavily indebted Petra, which bought its mines Cullinan and Finch from De Beers a dozen years ago — can’t.

Petra complained this month that cheapskates offered silly prices at its latest auction. Overall rough diamond prices offered were down 27 per cent on the previous sale. It planned to withdraw stones to be sold privately or later. However, £500m-plus in debt robs the group of options. In better times, it and rivals would be mopped up in a wave of consolidation. That is unlikely until lockdown lifts and the market thaws.

CMA: cat.rutterpooley@ft.com
Diamonds: kate.burgess@ft.com

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Politics Briefing: Saskatchewan residents to get carbon rebates despite province's opposition to pricing program – The Globe and Mail

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Hello,

The federal government will continue to deliver the carbon rebate to residents of Saskatchewan despite the province’s move to stop collecting and remitting the levy, Prime Minister Justin Trudeau said today.

In January, Saskatchewan’s Crown natural gas and electric utilities removed the federal carbon price from home heating bills, a move that the government says will improve fairness for its residents in relation to the other provinces.

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But Trudeau told a news conference in Saskatoon today that payments to residents won’t stop and that the Canada Revenue Agency has ways of ensuring money owed to them is eventually collected. He said he has faith in the “rigorous” quasi-judicial proceedings the agency uses.

In Ottawa, Environment Minister Steven Guilbeault accused Saskatchewan Premier Scott Moe, who is opposed to federal carbon pricing policy, of playing politics with climate change.

“The Prime Minister, and I think cabinet, felt that it wouldn’t be fair for the people of Saskatchewan to pay for the irresponsible attitude of the provincial government,” Guilbeault told a news conference.

The rebate is available to residents of provinces and territories where the federal carbon pricing system applies.

Trudeau was in Saskatoon to announce that the federal government is offering $5-billion in loan guarantees to support Indigenous communities seeking ownership stakes in natural resource and energy projects.

This is the daily Politics Briefing newsletter, written by Ian Bailey. It is available exclusively to our digital subscribers. If you’re reading this on the web, subscribers can sign up for the Politics newsletter and more than 20 others on our newsletter signup page. Have any feedback? Let us know what you think.

TODAY’S HEADLINES

Motion to allow keffiyehs in Ontario legislature fails again: A few Ontario government members blocked a move to permit keffiyehs in the legislature, prompting some people watching Question Period from the public galleries to put on the scarves.

B.C. puts social-media harms bill on hold: Premier David Eby issued a joint statement today with representatives from Meta, TikTok, Snap and X to say they have reached an agreement to work to help young people stay safe online through a new BC Online Safety Action Table.

Changes to capital-gains tax may prompt doctors to quit, CMA warns: Kathleen Ross, the president of Canadian Medical Association, said the tax measure “really is one more hit to an already beleaguered and low-morale profession.”

Thunder Bay Indigenous group wants province to dissolve the municipal police force: Grand Chief Alvin Fiddler, from the Nishnawbe Aski Nation, said that after years of turmoil, the Thunder Bay force has not earned the trust of the Indigenous people it serves.

Canada Post refusing to collect banned guns for Ottawa’s buyback program: CBC says the Crown corporation’s position is complicating Ottawa’s plans for a buyback program to remove 144,000 firearms from private hands, federal sources say.

Ottawa police investigating chant on Parliament Hill glorifying Hamas Oct. 7 attack: Police Chief Eric Stubbs acknowledged it can sometimes be difficult to discern what constitutes a hate crime as he confirmed his force is investigating a pro-Palestinian protest over the weekend on Parliament Hill.

TODAY’S POLITICAL QUOTES

“I don’t take any lessons from the Leader of the Opposition when it comes to how marginalized people feel. I’m an Italian Canadian, who, in the 1970s, was spit on.” – Ontario Government House Leader Paul Calandra in the legislature today.

“I’ve spoken with some of my peers from all around the world. All of us would be challenged to find an environment minister somewhere in the world that would tell you: Easy peasy fighting climate change.” – Federal Environment Minister Steven Guilbeault at a news conference in Ottawa today as international talks in the city proceed to deal with plastics pollution,

THIS AND THAT

Commons, Senate: The House of Commons is on a break until April 29. The Senate sits again April 30.

Deputy Prime Minister’s day: Chrystia Freeland participated in a fireside chat on the budget, then took media questions.

Ministers on the road: With the Commons on a break, ministers continued to fan out across Canada to talk about the budget. Today, the emphasis was largely on the budget and Indigenous reconciliation. Citizens’ Services Minister Terry Beech, with Health Minister Mark Holland, made an Indigenous reconciliation announcement in the B.C. community of Sechelt. Defence Minister Bill Blair is on a three-day visit to the Northwest Territories. Employment Minister Randy Boissonnault is in Edmonton to make an announcement on Indigenous reconciliation. Industry Minister François-Philippe Champagne was in the Quebec city of La Tuque. Public Services Minister Jean-Yves Duclos is in Quebec City, focusing on the budget and Indigenous reconciliation. Indigenous Services Minister Patty Hajdu in Vancouver addressing Indigenous reconciliation. Families Minister Jenna Sudds is in Thunder Bay. King’s Privy Council President Harjit Sajjan and Justice Minister Arif Virani touted the budget in an event in Coquitlam, B.C.

Vidal out: Conservative MP Gary Vidal has announced he won’t run in the next election owing to dramatic changes in the Saskatchewan riding he has represented since 2019 that will mean he will no longer be living there. Also, he noted in a posting on social-media platform X that the Conservatives are not allowing an open nomination in the riding he will be living in. “Although this is not the expected outcome I anticipated, circumstances beyond the control of myself and my team have dictated that I move on after the next election,” he wrote.

GG in Saskatchewan: Mary Simon and her partner, Whit Fraser, continued their visit to the province, with stops in Regina that included a stop at the Regina Open Door Society, which provides settlement and integration services to refugees and immigrants. Later, she engaged in a round-table discussion with mental-health specialists on issues affecting Canada’s farming and ranching communities.

New CEO for Pearson Centre for Progressive Policy: George Young is the new chief executive officer of the think tank on progressive issues. The former national director of the federal Liberal party under Jean Chrétien served as a chief of staff to several Chrétien ministers, was a senior adviser to former Ottawa Mayor Jim Watson.

PRIME MINISTER’S DAY

Justin Trudeau was in Saskatoon for a news conference on budget measures.

LEADERS

Green Party Leader Elizabeth May is in Ottawa to attend a session of the United Nations Intergovernmental Negotiating Committee on plastic pollution.

NDP Leader Jagmeet Singh, in Edmonton, went door-knocking in the city with Edmonton Centre candidate Trisha Estabrooks.

No schedules released for Bloc Québécois Leader Yves-François Blanchet and Conservative Leader Pierre Poilievre.

THE DECIBEL

On today’s podcast, Nathan VanderKlippe, The Globe’s international correspondent, discussed what has been happening on West Bank farmlands during the Israel-Hamas war. The Decibel is here.

PUBLIC OPINION

Liberals not an option: A third of Canadians surveyed by Ipsos Global Public Affairs say they would never vote Liberal in the next federal election.

No budget lift: Nanos Research says the federal Tories have a 19-point lead over the Liberals despite the release of a budget the government hoped would improve its political fortunes.

CAQ running third: Quebec’s governing Coalition Avenir Québec party has, in a new poll, fallen to third place in public support behind the Parti Québécois and the Liberals, The Gazette in Montreal reports.

OPINION

The Liberals promise billions for clean power. Don’t undermine it with politics

“In the summer of 2022, U.S. President Joe Biden’s ambition to deliver landmark climate legislation looked like it was dead – until the plan experienced a sudden political resurrection on Capitol Hill. The machinations in Washington have reverberated in Ottawa ever since.” – The Globe and Mail Editorial Board

The Liberals’ immigration policies have accomplished the opposite of what was intended

“In its well-meaning effort to encourage the migration of international students to Canada, the Trudeau government is turning swaths of our postsecondary education system into a grift. As a result, broad public support for immigration, the foundation stone of multicultural Canada, is eroding.” – John Ibbitson

Canada’s underwhelming disability benefit is a sign of a government out of ideas

“The Canada Disability Benefit had – and still has – the potential to be a generational game-changer. Done right, it could lift hundreds of thousands of Canadians out of poverty. But what the Liberal government has delivered so far is a colossal betrayal of the promise made to those living with physical, developmental and psychiatric disabilities: a program with a paltry payout and a limited scope, and bogged down in red tape.” – André Picard

Got a news tip that you’d like us to look into? E-mail us at tips@globeandmail.com. Need to share documents securely? Reach out via SecureDrop.

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How Michael Cohen and Trump went from friends to foes – CNN

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How Michael Cohen and Trump went from friends to foes

CNN’s Tom Foreman breaks down the evolution of the relationship between former President Donald Trump and his one-time fixer Michael Cohen, and how it fell apart.


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Budget 2024 failed to spark ‘political reboot’ for Liberals, polling suggests – Global News

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The 2024 federal budget failed to spark a much-needed rebound in the polls for Prime Minister Justin Trudeau’s trailing Liberal party, according to new Ipsos polling released Tuesday.

Canadian reaction to the Liberal government’s latest spending plans shows an historic challenge ahead of the governing party as it tries to keep the reins of government out of the Conservative party’s hands in the next election, according to one pollster.

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“If the purpose of the budget was to get a political reboot going, it didn’t seem to happen,” says Darrell Bricker, CEO of Ipsos Global Public Affairs.

A symbolic ‘shrug’ for Budget 2024

The 2024 federal budget tabled last week included billions of dollars in new spending aimed at improving “generational fairness” and rapidly filling in Canada’s housing supply gap.

Ipsos polling conducted exclusively for Global News shows voters’ reactions to the 2024 federal budget mostly ranged from lacklustre to largely negative.

After stripping out those who said they “don’t know” how they feel about the federal budget (28 per cent), only 17 per cent of Canadians surveyed about the spending plan in the two days after its release said they’d give it “two thumbs up.” Some 40 per cent, meanwhile, said they’d give it “two thumbs down” and the remainder (43 per cent) gave a symbolic “shrug” to Budget 2024.


Ipsos polling shows few Canadians give Budget 2024 “two thumbs up.”


Ipsos / Global News

“Thumbs down” reactions rose to 63 per cent among Alberta respondents and 55 per cent among those in Saskatchewan and Manitoba.

Some 10 per cent of respondents said the budget would personally help them, while 37 per cent said it would hurt, after again stripping out those who said they didn’t know what the impact would be.

Asked about how they’d vote if a federal election were held today, 43 per cent of respondents said they’d pick the Conservatives, while 24 per cent said they’d vote Liberal, followed by 19 per cent who’d lean NDP.


Click to play video: '3 key takeaways from the 2024 federal budget'

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3 key takeaways from the 2024 federal budget


The Conservative lead is up one point from a month earlier, Bricker notes, suggesting that Budget 2024 failed to stem the bleeding for the incumbent Liberals.


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Only eight per cent of respondents to the Ipsos poll said the budget made them more likely to vote Liberal in the upcoming election, while roughly a third (34 per cent) said it made them less likely.

“The initial impressions of Canadians are that it hasn’t made much of a difference,” Bricker says.

Sentiment towards the Liberals remains slightly higher among generation Z and millennial voters — the demographics who appeared to be the focus of Budget 2024 — but Bricker says opinions remain “overwhelmingly negative” across generational lines.

Heading into the 2024 budget, the Liberals were under pressure to improve affordability in Canada amid a rising cost of living and an inaccessible housing market, Ipsos polling conducted last month showed.

The spending plan included items to remove junk fees from banking services and concert tickets, as well as some items aimed at making it easier for first-time homebuyers to break into the housing market. It also included a proposed change to how some capital gains are taxed, which the Liberals have claimed would target the wealthiest Canadians.

Paul Kershaw, founder of Generation Squeeze, told Global News after the federal budget’s release that while he was encouraged by acknowledgements about the economic unfairness facing younger demographics, there is no quick fix for the affordability crisis in the housing market.


Click to play video: 'Canada’s doctors say capital gains tax changes could impact care'

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Canada’s doctors say capital gains tax changes could impact care


A steep hill for Liberals to climb

Trudeau, his cabinet ministers and Liberal MPs have hit the road both before and after the budget’s release to promote line items in the spending plan.

Bricker says this is the typical post-budget playbook, but so far it looks like there’s nothing that “really caught on with Canadians” in the early days after the release of the spending plans. The Liberals have a chance to make something happen on the road, he says, but it’s “not looking great.”

“Maybe over the course of the next year, they’ll be able to demonstrate that they’ve actually changed something,” he says.

Bricker notes, however, that public opinion has changed little in federal politics over the past year.

The next federal election is set for October 2025 at the latest, but could be called earlier if the Liberals fail a confidence vote or bring down the government themselves.

But a vote today would see the Liberals likely lose to a “very, very large majority from the Conservative party,” Bricker says.


Click to play video: '‘$50B orgy of spending’: Poilievre mocks Trudeau for latest federal budget'

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‘$50B orgy of spending’: Poilievre mocks Trudeau for latest federal budget


“What we’re seeing is, if things continue on as they’ve been continuing for the space of the last year, that they will end up in a situation where, almost an historic low in terms of the number of seats,” he says.

The Conservatives are leading in every region in the country, except for Quebec, where the Bloc Quebecois holds the pole position, according to the Ipsos polling.

The Liberals are meanwhile facing “a solid wall of public disapproval,” Bricker says. Some 32 per cent of voters said they would never consider voting Liberal in the next election, higher than the 27 per cent who said the same about the Conservatives, according to Ipsos.

Typically, Bricker says an incumbent party can hold onto a lead in some demographic, age group or region and build out a strategy for re-election from there.

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But this Liberal party lacks any foothold in the electorate, making prospects look grim in the next federal election; it’s so bleak that he even invokes the Progressive Conservative party’s historic rout in the 1993 vote.

“The hill they have to climb is incredibly hard,” Bricker says.

“I haven’t seen a hill this high to climb in federal politics since Brian Mulroney was faced with a very similar situation back in 1991 and ’92. And we all know what happened with that.”

These are some of the findings of an Ipsos poll conducted between 17 and 18, April 2024, on behalf of Global News. For this survey, a sample of 1,000 Canadians aged 18-plus was interviewed online. Quotas and weighting were employed to ensure that the sample’s composition reflects that of the Canadian population according to census parameters. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ± 3.8 percentage points, 19 times out of 20, had all Canadians aged 18-plus been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.


Click to play video: '‘It’s absolutely right’: Freeland addresses capital gains tax adjustment concerns'

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‘It’s absolutely right’: Freeland addresses capital gains tax adjustment concerns


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