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Ottawa rejects calls to shut down rail blockades, will focus on negotiation – The Globe and Mail

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A protester carries a sign at a rail blockade in Tyendinaga, near Belleville, Ont., on Saturday, Feb. 15, 2020.

Lars Hagberg/The Canadian Press

The federal government is ramping up its efforts to convince Indigenous communities to peacefully end a series of rail blockades, as Canadian National Railway Co. announced 1,000 temporary layoffs on Sunday, reflecting the growing economic impact of the protests.

Prime Minister Justin Trudeau on Sunday cancelled a trip to the Caribbean to focus on the blockades and Indigenous Services Minister Marc Miller said that Ottawa doesn’t believe police intervention is the solution to anti-pipeline protests that have shut down much of the country’s rail system. Some premiers and the federal Conservative opposition had called on the government in recent days to take a hard line, enforce injunctions and remove protesters.

Businesses have warned of economic damage as trains typically carrying tens of thousands of commuters and billions of dollars worth of freight have been idled in railyards and sidings across the country since the blockades began on Feb. 6. CN sent out 450 of an estimated 1,000 temporary layoff notices on Sunday, spokesman Alexandre Boulé confirmed, as protests have shuttered much of the railway’s eastern Canadian network.

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Late Sunday, federal Transport Minister Marc Garneau relaxed a ministerial order that had limited the speed of trains transporting combustible cargo such as crude oil. The order followed a fiery derailment in Saskatchewan in early February. CN said the change would allow it to increase the speed of its shipments in Western Canada, which would help compensate for the blockades in the east.

The protests have been spearheaded by groups opposed to the Coastal GasLink pipeline in northern British Columbia and the RCMP’s enforcement of injunctions to dislodge protesters who had been blocking construction of the $6.6-billion pipeline. All 20 elected First Nation councils along the natural gas pipeline’s route support the project, but a group of eight Wet’suwet’en hereditary house chiefs have led a vocal campaign to oppose the pipeline’s construction.

Crown Indigenous Relations Minister Carolyn Bennett is expected to meet with Indigenous leaders in British Columbia on Monday. The Gitxsan First Nation temporarily took down a rail blockade near Hazelton, B.C., last week pending a proposed meeting with the minister, provincial officials and Wet’suwet’en hereditary chiefs.

Chantal Gagnon, a spokeswoman for the Prime Minister, said Mr. Trudeau has been in communication on the weekend with Deputy Prime Minister Chrystia Freeland, Public Safety Minister Bill Blair, Mr. Garneau and Ms. Bennett.

“Our priority remains the safety and security of all Canadians and the swift resolution of this issue to restore service across the rail system in accordance with the law,” she said in a statement.

Opinion: Every day rail blockade lasts, Trudeau’s stock drops lower

Mr. Miller, the Indigenous Services Minister, said the federal government has learned from two bloody police raids on First Nations encampments in recent decades, in Oka, Que., in 1990 and in Ipperwash, Ont., in 1995. More dialogue with Indigenous leaders and communities is the only solution to the continuing blockades, he said on Sunday.

“We have the experience of Oka 30 years ago where people went in with police and someone died. My question to Canadians, my questions to myself and to fellow politicians regardless of the party, is whether we do things the same old way and repeat the errors of the past, or do we take the time to do it right?” he said in an interview.

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A blockade in the Tyendinaga Mohawk Territory near Belleville, Ont., has stopped most traffic on CN’s rail network east of Winnipeg.

Via Rail said on Sunday that it has cancelled all trains across Canada, except for two secondary routes, until the end of Monday. More than 83,000 passengers have had their trips cancelled since the Ontario blockade started.

One of Montreal’s commuter lines has been shut down by a blockade in the Kahnawake Mohawk Territory outside the city. The provincial authority that operates the line said it is planning to run buses for commuters on Monday.

Smaller protests were also held on the weekend in Vancouver, Vaughan, Ont., and Niagara Falls, Ont.

Protesters at the Tyendinaga blockade declined to speak to media, including regarding Mr. Trudeau’s plans – except to say they believed it was unlikely that he would show up and speak to them in person.

Four Ontario Provincial Police officers hung back several hundred metres from the blockade Sunday, coming closer only for a brief check-in with the protesters in the late afternoon. “The dialogue is still open,” said Sergeant Cynthia Savard, the OPP’s regional community safety officer, in a phone interview. “It’s about keeping a peaceful, safe environment.”

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Several dozen supporters arrived over the course of the day, delivering supplies including pizza, propane, firewood and Tim Hortons coffee. Some came from hundreds of kilometres away to share their support for the blockaders and the Wet’suwet’en hereditary chiefs, and share their fears over the natural gas pipeline in B.C.

“It’s our future that’s going to be destroyed – it’s really important for youth,” said Malika Gasbaoui, 17, who is Ojibwa-Métis and visited from the Laurentians in Quebec. Her mother, Anna, added that “a lot of people have been saying that the majority of native people, and non-native people in Canada, are for pipelines – which is not true. … The more these guys destroy, the less we’re going to have.”

Mike Salmon came with his family from Kitchener, Ont. to bring the protesters tarps, toilet paper and batteries. “I think it’s such a sign of the times that Canada’s been going through this wake-up call about reconciliation, and the whole planet is going through a wake-up call around climate change,” he said.

Kenneth Deer, the secretary of the Mohawk Nation at Kahnawake, said his community’s blockade has been supported by the local band council and he expects it will remain in place until the Wet’suwet’en hereditary chiefs tell them to stand down. Kahnawake was one of the communities at the centre of the Oka crisis.

“They blocked highways and railroads during the Oka crisis. They helped us. Now the shoe is on the other foot and we’re going to help them,” said Mr. Deer. “This has to be dealt with over there, with the Wet’suwet’en. All of this is for them. This is not for Tyendinaga and not for Kahnawake.”

Last week, federal Conservative Leader Andrew Scheer called on police to enforce court orders and end the blockades, and criticized protesters as misguided activists who are damaging the economy and ignoring the wishes of elected First Nations leaders.

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Ontario Premier Doug Ford said Sunday evening that he had urged Mr. Trudeau to focus on ending the blockades, calling it a “serious issue of national significance.”

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Japan’s SoftBank returns to profit after gains at Vision Fund and other investments

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TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.

Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.

Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).

SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.

The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.

WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.

SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.

SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.

SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.

The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.

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Yuri Kageyama is on X:

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Trump campaign promises unlikely to harm entrepreneurship: Shopify CFO

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Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.

“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.

“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”

Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.

On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.

If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.

These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.

If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.

However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.

He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.

“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.

Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.

The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.

Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.

Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.

Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.

Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.

Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”

In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.

“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.

This report by The Canadian Press was first published Nov. 12, 2024.

Companies in this story: (TSX:SHOP)

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RioCan cuts nearly 10 per cent staff in efficiency push as condo market slows

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TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.

The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.

The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.

RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.

The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.

RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.

This report by The Canadian Press was first published Nov. 12, 2024.

Companies in this story: (TSX:REI.UN)

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