Manitoba’s Official Opposition is demanding transparency about Premier Heather Stefanson’s participation in a fund for affluent investors, despite the fact there are no laws requiring provincial politicians to disclose which companies they invest in.
The NDP noted that Stefanson is a client of the capital management company Manitou Investment Management Ltd., which she disclosed in her conflict of interest declaration. The firm said in a conference call it boosted client portfolios by a quarter billion dollars in 2021.
The Portfolio Management Association of Canada says the firm requires a minimum $5 million investment, but the premier’s office says “the minimum is a guideline” and Stefanson invested “nowhere near that amount.”
During question period at the legislature on Thursday, NDP finance critic Adrien Sala argued Stefanson, as the highest office-holder in the province, should be forthcoming about investments in an exclusive fund that could be worth millions of dollars. He alleged the premier invested at least $5 million into the fund.
“The people of Manitoba expect their leaders to be transparent and open, and when it comes to millions of dollars of investments by the premier, the expectations are rightly even higher,” Sala said.
In speaking with reporters, Sala said transparency from the premier is particularly important given that a judge recently ruled she violated conflict of interest rules by failing to promptly disclose property sales worth $31 million.
He raised the possibility Stefanson could have invested in companies that might put her in conflict with Manitoba’s interests, but offered no proof she has done so.
Sala, however, didn’t call for stricter transparency laws for Manitoba’s MLAs, nor would he commit to seeing NDP caucus members disclosing which companies they invest in.
Some of their MLAs are financially well-off too, including leader Wab Kinew, who wasn’t eligible for the inflationary relief cheque issued this year by the government for households with a net income less than $175,000.
“Not having done a survey of my colleagues, I can say as the Manitoba NDP we do not have colleagues that have, like the premier, these kinds of obscene amounts of money to throw around,” Sala said.
Asked what he considers “obscene,” Sala said “an obscene amount of money is when you forget about $31 million,” referring to the conflict of interest violation that led to last month’s Court of King’s Bench ruling against the premier. The judge wrote in a written decision she couldn’t penalize Stefanson because she had made an unintended mistake.
Stefanson’s office slammed the NDP’s claims as “incorrect and misleading.”
“What is true is Wab Kinew is a millionaire and he doesn’t want Manitobans to know,” the premier’s spokesperson alleged.
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.
