Danielle Smith became the new premier of Alberta after winning the UCP leadership vote, and her proposed Alberta Sovereignty Act, an act that would allow Alberta to override Federal laws and rulings, was a key factor during her campaign.
The Sovereignty Act has been hotly contested by both UCP and NDP members alike, with former leadership candidate Brian Jean saying it’s a “fiscal fairy tale” that won’t work, while fellow candidate Rebecca Schultz called it the Anarchy Act, saying it’s “a false dream that will turn into a nightmare.”
NDP MLA for Calgary Mountain View and Energy Critic Kathleen Ganley says this act is “extremely problematic regardless of political stripe” because of the confusion it could create.
“The Sovereignty Act itself potentially generates a bunch of uncertainties. So it means that potentially, the provincial government is going to step in and pick and choose which federal laws it’s going to respect. That means companies and citizens and people out there in the world don’t know which laws they have to abide by and which ones they don’t and that creates legal processes and a lot of uncertainty and that all takes a lot of time,” she said.
Ganley said this uncertainty could hurt Albertans on a day-to-day basis, as law enforcement may not know which laws to enforce or not, and citizens may not know what’s in place versus what the provincial government decides to override. While this is definitely a concern, Ganley added investments are the biggest concern and what that could mean for our economy.
“Investment doesn’t like uncertainty, so that will drive that investment away. Investors will go elsewhere where there is greater certainty and where they know what the laws are. That’s the real problem, you wind up in a position where people can’t invest because they don’t know what the laws are.”
Alberta has recently been great for investment, with huge projects like the De Havilland aircraft facility coming to Wheatland County. Ganley said she can’t speak for how current investors would feel but says it creates a sense of risk for investors when considering where they’re putting their money.
“People invest their money on the basis that Alberta is a jurisdiction in which they know what the laws are. If they pass the Sovereignty act, that’s a big problem. Alberta is no longer a jurisdiction in which someone can book and know what the laws are.”
Ganley hopes the UCP and NDP can work together to prevent the Sovereignty Act from being passed, as several UCP members have already spoken against it.
“We asked for UCP members of the legislative assemblies to not just follow the orders they are being given by their new leader, but to go out to talk to the people around them and to talk to the business community and really understand just how problematic this is going to be for investment and then to vote in the best interest of Albertans.”
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.
