After the coronavirus pandemic, Canadians will return to spending as a way to release pent-up demand — but not in Calgary. Add in the role the city has in the region’s economy, and that’s the argument Mayor Naheed Nenshi is making to the federal government to get added fiscal stimulus to the southern Alberta city.
“Many of the parts of the country are going to be in a massive economic boom when COVID ends,” Nenshi said. “A lot of pent up demand, a lot of economic activity from two whole years, kind of all being spent at once.
“But it won’t happen in Calgary. The fundamentals are still weak here.”
Calgary’s mayor said his city — mired in a pre-pandemic, years-long economic downturn — has an outsized influence on economies across the Prairies and into British Columbia, and that is the reason for Ottawa to make an “asymmetric investment” in Calgary.
“Don’t expect that Calgary will just benefit from national programs,” Nenshi said. “You actually have to invest in the city with the highest unemployment rate in order to see benefit.”
At a meeting of the city’s intergovernmental affairs committee on Thursday, Nenshi said he sent a pre-budget letter to the deputy prime minister and minister of finance that was different from years past.
Nenshi projects the hospitality and arts sectors are going to bounce back and didn’t discount the highest per capita gross income the city still enjoys.
But he pointed to three areas of need for increased federal funding.
7:35 Calgary Mayor Naheed Nenshi discusses his meeting with Prime Minister Justin Trudeau
Calgary Mayor Naheed Nenshi discusses his meeting with Prime Minister Justin Trudeau – Feb 11, 2021
“The things I’ve really been pitching are a new economic development relationship with the federal government, particularly as it relates to our downtown — a real focus on jobs — as well as assistance in helping us with some of the technical aspects around conversion of downtown office buildings to other, more suitable uses as we go through this economic transition,” Nenshi told the committee.
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“These investments in downtown Calgary aren’t just for 20 square blocks — they are for this vast region,” he said.
Nenshi asked for “significant investments in simulative infrastructure” in cultural and sports infrastructure.
The mayor highlighted the need for “real investment” in housing, with the aim to eliminate chronic homelessness in the city, a goal he previously said could be achieved with a “relatively modest” $500-million investment.
Ward 14 Coun. Peter Demong said “it’s prudent and it behooves the federal government” to pay some attention to helping Calgary’s economy.
“The city of Calgary has, in its role as being a lead municipality of Alberta, had an outsized impact on the Canadian economy,” Demong told Global News. “It has led to the economy for decades, has increased the investment to the Canadian economy in general, as has been outsized for a city of its size.”
While the federal government hasn’t announced when it will next table a budget, the House of Commons finance committee did table a pre-budget consultation report on Tuesday.
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The Alberta government is due to release its budget on Feb. 25, a prospect that has Nenshi “very nervous.”
“If (the provincial government) starts cutting capital spending, for example, at the moment when we need stimulus, that’s a kick in the teeth to any economic recovery that we’ve got,” Nenshi told reporters Thursday.
“If they cut operating funding — as little as it is to the city for things like the low-income bus pass or police funding, which I don’t think is likely though they’ve done it before — that’s a real problem for us.”
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.
