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Kenney announces new law clamping down on protestors – Edmonton Journal

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On the eve of the Throne Speech and in the wake of Teck’s decision to pull out of its Frontier Mine project, Premier Jason Kenney announced legislation targeting protesters who disrupt vital infrastructure networks.

Kenney blamed Teck’s withdrawal on Sunday in part on the “appearance of anarchy” caused by nationwide protests in support of Wet’suwet’en heridetary chiefs who are opposed to the CoastalGas Link project in northern B.C.

“This decision was taken in large part because of regulatory uncertainty and endless delays created by the national government, as well as the general atmosphere of lawlessness that we have seen take hold of parts of our country and much of our economic infrastructure in the past three weeks,” said Kenney in a speech to caucus, government staff, invitees and media on Monday.

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The first bill of the spring session will be the Critical Infrastructure Defense Act, creating new “stiff penalties for anyone who riots on or seeks to impair critical economic infrastructure,” Kenney said.

The government will table the legislation, otherwise known as Bill 1, on Tuesday.

Kenney said he had spoken to “major” investors who have cancelled, frozen and suspended major investments in the economy because of the rail blockades.

The Court of Queen’s Bench granted a province-wide, 30-day injunction last week after protesters blocked CN tracks east of Edmonton. Police can be called to serve and enforce that order. In Ontario, police enforced an injunction Monday, dismantling the blockade near Belleville, Ont., that began on Feb. 6 and halted freight and passenger rail service across much of the country.

Kenney targeted “urban green left zealots,” saying they were trying to appropriate protests and condemning Indigenous people to poverty. The Coastal GasLink project, which is supported by all 20 elected First Nation chiefs along the pipeline’s route, is expected to create 2,000 to 2,500 jobs during its four-year construction period.

Kenney also promised a “citizen-initiative” referendum law in the coming days that will allow citizens to put issues that are important to them on the ballot, although he added that the government would prevent frivolous abuse of the process.

Although Teck CEO Don Lindsay criticized the lack of a regulatory framework and cited investor uncertainty in his letter to the federal government Sunday, Kenney said the province can reconcile a potential referendum over national unity issues.

“When I talk about tensions on national unity, I’m not advocating that, I’m describing a reality that exists in this province and other parts of Canada. And I think it would be grossly irresponsible for political leaders to ignore that reality,” he said.

The Bill 1 announcement came on the heels of the Alberta Court of Appeal’s decision Monday afternoon, which ruled in favour of Alberta’s legal challenge and declared the federal carbon tax unconstitutional.

When asked how killing the carbon tax would make investing in Canada more attractive to companies like Teck, Kenney said the province’s Technology Innovation and Emissions Reduction (TIER) Regulation is a better solution than the federal carbon tax because it focuses on big emitters and scientific solutions.

He also reiterated that Teck did not flag environmental frameworks as a problem until its decision was made public on Sunday.

‘Let’s resolve those issues’: Mikisew Chief

Chief Archie Waquan of the Mikisew First Nation, who had announced the community’s support for the Teck project on Friday, said he was disappointed in the company’s decision on Monday.

“I feel badly about it,” he said, noting that it took 10 years of work to come to an agreement.

Hurting the economy is not the best way to protest, but clamping down on protestors might be “too strong” of an approach, he said, adding that talking with Indigenous communities is the only way to practical solutions.

“Let’s resolve those issues that are affecting First Nations — let’s get it going — and then you’ll never have any of those blockades in the future,” he said.


NDP Leader, Rachel Notley, answers question about Teck’s application withdraw from the Frontier oilsands mine during a news conference on costs being downloaded onto municipalities by the government, with NDP Municipal Affairs Critic, Joe Ceci (back) in Edmonton, February 24, 2020. Ed Kaiser/Postmedia

‘He’s scrambling’: Notley

Opposition NDP leader Rachel Notley said Monday that Teck’s decision is the direct result of Premier Jason Kenney’s “combative” political approach.

International investors are looking for a predictable regulatory framework on greenhouse gas emissions, but instead are seeing Kenney demonize anyone with any concerns about climate change, alienating investors and leaving Albertans behind, Notley said.

The blockades are the result of longstanding matters that need to be addressed across the country, and confounding the issue of protests, emissions regulation and investment is dishonest, she said.

“He’s scrambling, and it’s cheap issues management,” said Notley.

Kenney has fought against the environmental frameworks that investors want and mischaracterized international banking heads and fund managers as “urban green radicals,” she said.

“He is essentially promoting the continued investor uncertainty that created this problem in the first place,” she said.

It is already illegal to blockade railways, and police have the jurisdiction to arrest trespassers, she said when asked about how effective Kenney’s upcoming first bill will be.

“It comes down to what the deterrent element is, and how it’s constructed,” she said.

lijohnson@postmedia.com

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The close: TSX notches biggest gain of 2023 as stocks rally on U.S. jobs data, debt default deal

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U.S. and Canadian stocks closed higher on Friday after a labour market report showing moderating wage growth in May indicated the Federal Reserve may skip a rate hike in two weeks, while investors welcomed a Washington deal that avoided a catastrophic debt default. It was the biggest gain in seven months for the TSX, with energy and financial shares among the biggest winners in a broad-based rally.

Bond yields spiked as a risk-on tone to markets had investors shunning the bond market.

The tech-heavy Nasdaq index surged to a 13-month intraday high and posted its sixth-straight week of gains that mark its best winning streak since January 2020.

U.S. job growth accelerated in May but a surge in the unemployment rate to a seven-month high of 3.7% as more people looked for employment indicated labour market conditions were easing.

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The jump in the unemployment rate from a 53-year low of 3.4% in April reflected a drop in household employment and a rise in the overall workforce. A bigger labour pool is easing pressure on businesses to raise wages and helping decelerate inflation.

Average hourly earnings climbed 0.3% after rising 0.4% in April. That lowered the year-on-year increase in wages to 4.3% after an advance of 4.4% in April. Annual wage growth averaged about 2.8% prior to the pandemic.

“While it appears to be a hot number on the actual number of people employed, the wage rate is not increasing as fast,” said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh. “That is a softening effect and is this the mythical soft landing? Looks like that.”

The data brought relief to investors who mostly expect the Fed to pause hiking rates at its policy meeting on June 13-14. It would be the first halt since the Fed started its aggressive anti-inflation policy tightening more than a year ago.

But some pointed to the much hotter-than-expected jobs data as a sign the Fed still has not yet tamed inflation.

“Our view is and has been that the market is completely wrong on assessing what the Federal Reserve is doing,” said Phil Orlando, chief equity strategist at Federated Hermes in New York.

“The market’s perception is that this economy was going to cool, inflation was going to collapse and the Fed was going to turn around and start cutting interest rates. That’s wrong.”

Fed funds futures showed a 66.6% probability that the Fed will hold rates steady in two weeks, down from 79.6% on Thursday, according to CME Group’s FedWatch Tool.

The yield on the 10-year U.S. Treasury climbed to 3.70% from 3.60% late Thursday. The two-year Treasury yield, which moves more on expectations for Fed action, jumped to 4.52% from 4.34%. Canadian bonds saw a similar jump in yields.

Markets now await data on key consumer prices a day before the Fed’s rate decision.

The Toronto Stock Exchange’s S&P/TSX composite index ended up 352.38 points, or 1.8%, at 20,024.63, its biggest advance since November 2022. For the week, it was up 0.5%.

“It is all these little factors that the market is holding on to, looking for any reason to be bullish and they’re finding it,” said Philip Petursson, chief investment strategist at IG Wealth Management. “It’s definitely risk-on today.”

The TSX energy sector rallied 2.8% as oil settled 2.3% higher at US$71.74 a barrel ahead of a meeting of OPEC and its allies this weekend.

Suncor Energy Inc was up 3.2% after the company told employees it plans to cut 1,500 jobs this year.

“It appears that some activist investors are trying to make Suncor more efficient over the long term by getting them to cut costs and that’s good to see for investors,” said Greg Taylor, chief investment officer at Purpose Investments.

Heavily-weighted financials rose 2.1% and industrials were up 2.2%.

The real estate sector also advanced 2.2% as data showed home prices in the Greater Toronto Area increased in May from April and sales rose sharply.

In contrast, shares of Canaccord Genuity Group Inc fell 6.8% after a management-led consortium said its C$1.13 billion take-private offer may not result in a deal.

In the U.S., the Senate passing a bill late on Thursday to lift the government’s US$31.4 trillion debt ceiling avoided what would have been a catastrophic, first-ever default.

Passage of the vote eased investor concerns as Wall Street’s fear gauge, the CBOE volatility index, fell to its lowest since November 2021, down 1.1 points at 14.6 points.

The Dow Jones Industrial Average rose 701.19 points, or 2.12%, to 33,762.76, the S&P 500 gained 61.35 points, or 1.45%, to 4,282.37 and the Nasdaq Composite added 139.78 points, or 1.07%, to 13,240.77.

Shares of Verizon Communications Inc, AT&T Inc and T-Mobile US Inc declined after a report said Amazon.com Inc was in talks with the U.S. telecoms to offer low-cost wireless services to its Prime members.

Verizon slid 3.2%, while AT&T and T-Mobile declined 3.8% and 5.6%, respectively; Amazon gained 1.2%.

All 11 S&P 500 sectors advanced, with the materials index leading, up 3.4%, and the consumer discretionary sector, housing Amazon, close behind, rising 2.2%.

Nvidia Corp slid 1.1% for a second day of declines after briefly entering on Wednesday the elite club of megacap stocks valued at $1 trillion or more on hopes artificial intelligence will deliver significant future returns.

But Nvidia’s almost 170% rise year to date highlights investors face of a market dominated by the out-performance of megacaps while most other companies tread water.

“Nobody’s really explained to me how they’re going to make any money from it,” said Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management in Punta Gorda, Florida. “A company like Nvidia going up so much in such a short period of time, that doesn’t make any rational sense.”

Advancing issues outnumbered declining ones on the NYSE by a 4.75-to-1 ratio; on Nasdaq, a 2.73-to-1 ratio favored advancers. The S&P 500 posted 15 new 52-week highs and two new lows; the Nasdaq Composite recorded 74 new highs and 40 new lows. Volume on U.S. exchanges was 11.05 billion shares, compared with about 10.58 billion average for the full session over the last 20 trading days.

Reuters, Globe staff

 

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Gold prices struggling as 339K jobs created in May but unemployment rate rises to 3.7% – Kitco NEWS

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Editor note Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day’s top stories directly to your inbox. Sign up here!

(Kitco News) – The gold market is trying to hold its ground within striking distance of $2,000 but could face an uphill battle as the U.S. labor market remains healthy and robust.  

U.S. nonfarm payrolls rose by 339,000 last month, according to the Bureau of Labor Statistics. The monthly figure was significantly above the market consensus estimate of 193,000. April’s employment data was revised up to 294,000 jobs.

However, looking past the headline number, the report said the unemployment rate rose sharply to 3.7% missing market consensus calls of 3.5% for May. The unemployment rate it at its highest level since December 2022.

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The gold market is seeing some selling pressure in initial reaction to the latest employment data. August gold futures last traded at $1,993.90 an ounce, down 0.08% on the day.

The report also said that wage growth rose in line with expectations, rising by 11 cents or 0.3% to 33.44 in May.

“Over the past 12 months, average hourly earnings have increased by 4.3 percent,” the report said.

While the gold market is seeing rising selling pressure, the latest employment data is not having much impact on interest rate expectations. According to the CME FedWatch Tool, markets still see a more than 65% chance that the central bank leaves interest rates unchanged when it meets later this month.

However, according to some analysts, the robust employment data indicates that while the central bank could pause, it has not yet finished raising interest rates. Some analysts have that this this longer-term shift in rate expectations could weigh on gold.

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One-quarter of Air Canada flights delayed Friday as schedule recovers from IT issue – Yahoo Canada Finance

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More than one-quarter of Air Canada flights experienced delays on Friday as the airline worked to return service to normal following a technical malfunction the previous day.

Air Canada had warned travellers early Friday morning they should be prepared for further flight disruptions. In its daily travel outlook, the carrier said that while its IT system was stable, flights may be affected at nine of Canada’s busiest airports, including Toronto’s Pearson, Montreal, Vancouver and Calgary.

Thursday’s outage led to more than 500 flights — over three quarters of its trips — to be delayed or cancelled on the day, creating what the airline said were “rollover effects” just prior to the weekend.

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A total of 144 Air Canada flights, or 27 per cent of the airline’s scheduled load, had been delayed Friday as of around 4:30 p.m. EDT, along with 33 cancellations, according to tracking service FlightAware.com.

An additional 56 flights with Air Canada Rouge saw delays, one-third of its daily load, plus 23 cancellations.

“Air Canada has stabilized its communicator system and it is functioning normally. However, due to the effects of Thursday’s IT issues on our schedule, some flights may be delayed this morning as we reposition aircraft and crew,” it said in an emailed statement.

“Customers are advised to check the status of their flight before going to the airport. Our flexible travel policy remains in effect for customers to change their travel plans at no charge.”

The airline did not clarify when it expected its flight schedule to fully return to normal.

Thursday’s disruption, sourced to the system used by the airline to communicate with aircraft and monitor their performance, came one week after Air Canada grounded its planes for about an hour when the same system experienced a separate issue.

That day, 241 Air Canada flights — 46 per cent of its trips — were delayed, according to FlightAware. Another 19 flights were also cancelled.

Air Canada said it has been in the process of upgrading the communicator system.

This report by The Canadian Press was first published June 2, 2023.

Companies in this story: (TSX:AC)

Sammy Hudes, The Canadian Press

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