What is the future of investing in emerging markets? - Al Jazeera America - Canada News Media
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What is the future of investing in emerging markets? – Al Jazeera America

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Since the 1990s, globalisation gave the impression that emerging markets were and could converge with developed nations.

The BRICS and Next 11 became the latest investment craze. Hundreds of millions were lifted out of poverty and millions more climbed the social escalator into the middle class.

But something has gone wrong. The end of the commodity supercycle and easy money came long before populism and the threat to globalisation.

And it can be argued that most emerging market growth was attributable to China and India.

To dissect what countries really want from globalisation and more importantly, Foreign Direct Investment, our panel at the Doha Forum 2019 is at the cutting edge of policymaking.

Panel:

Arancha Gonzalez – executive director of the International Trade Centre

Murat Emirdag – chief executive of Hepsiburada

Ali Alwaleed Al Thani – chief executive of the Investment Promotion Agency Qatar

Issam Abousleiman – regional director for the GCC at the World Bank

Source: Al Jazeera News

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Aphria lines up $100-million investment as CEO touts balance sheet strength – BNNBloomberg.ca

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Aphria Inc. announced Friday it has lined up a $100-million investment from an unidentified institutional investor, representing a fresh capital injection which the Canadian cannabis producer has earmarked for “opportunistic” international expansion efforts.

Aphria Chief Executive Officer Irwin Simon told BNN Bloomberg in a phone interview that the investment demonstrates confidence in Aphria as well as the company’s management and strategy.

“It shows [the investor] is a believer in the [cannabis] category where a lot of licensed producers have had trouble finding any type of financing,” Simon said.

“We didn’t have to do this. We have close to $600 million on our balance sheet. It just gives us a much stronger balance sheet to continue doing what we’re doing.”

Cannabis companies have faced a capital crunch in the past several months following a broad sell-off in the legal marijuana space and weaker-than-expected quarterly revenue figures. However, Aphria has emerged as one of the few Canadian cannabis producers to report positive adjusted earnings before interest, tax, depreciation and amortization, a key metric that other major companies have yet to achieve.

The yet-to-be-named investor will acquire about 14 million units at $7.12 apiece. Each unit includes one common share in Aphria as well as one-half of a common share purchase warrant priced at $9.26. The warrants are set to expire two years after the deal closes, Aphria said in a statement.

If the investor exercises all warrants, they will acquire about 21 million shares in the company, making it Aphria’s leading shareholder, according to Bloomberg data. John Cervini, an Aphria co-founder, is currently the company’s leading shareholder with about 9.8 million shares, or about 3.9 per cent of the company, according to Bloomberg data.

Simon declined to specify who the institutional investor is, citing a confidentiality agreement, but noted it would assume less than 10 per cent ownership of the company if the warrants are exercised in full.

“When someone writes a $100-million cheque, that’s going to be a sophisticated investor who knows Aphria and believes in Aphria,” he said. “It’s one investor with one cheque. With the warrants, it’s an opportunity to have an additional $64 million available to us.”

He also said Aphria is eyeing “opportunistic acquisitions” globally as well as within Canada to deploy its new capital, but declined to specify any areas where he is particularly interested in investing.

“There’s going to be opportunistic assets and a lot of stuff to do,” he said. “Over the next six months, the industry will condense and consolidate and I’d like to be prepared and have the right balance sheet to do that.”

Raymond James cannabis analysts Rahul Sarugaser and Michael Freeman said the $100-million investment signals that there still remains positive sentiment around cannabis players with strong balance sheets.

“The market clearly expects [Aphria] to not only weather the present storm, but to then flourish when the market recovers, likely during the back half of 2020,” the analysts said in an email to BNN Bloomberg.

Cannabis Canada is BNN Bloomberg’s in-depth series exploring the stunning formation of the entirely new — and controversial — Canadian recreational marijuana industry. Read more from the special series here and subscribe to our Cannabis Canada newsletter to have the latest marijuana news delivered directly to your inbox every day.

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How the coronavirus could sicken stocks — plus other top investing tips – MarketWatch

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Don’t miss these top money and investing features:

Money and investing stories getting attention from MarketWatch readers include reports on how the coronavirus outbreak in China could affect stock prices, how the U.S. stock market performs following a strong first month of the year, the Dow Jones Industrial Average’s faces a stiff test, and why investing in companies promoting environmental sustainablility is good for the planet and your portfolio.

— Jonathan Burton

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Bullish sentiment extremes, overbought conditions leave equity markets vulnerable: analysts
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How the stock market has performed during past viral outbreaks

Wall Street investors may have little to fear.
How the stock market has performed during past viral outbreaks

Here’s what the Super Bowl ‘Predictor’ sees for stocks in 2020, depending on whether the 49ers or the Chiefs win

Basing investment decisions on a football game is a good way to get sacked, writes Mark Hulbert.
Here’s what the Super Bowl ‘Predictor’ sees for stocks in 2020, depending on whether the 49ers or the Chiefs win

Legendary investor Paul Tudor Jones says market today is like early ’99, driven by ‘insane monetary policy’

He predicts the market will experience a ‘blow-off top’
Legendary investor Paul Tudor Jones says market today is like early ’99, driven by ‘insane monetary policy’

Some big coal players may escape BlackRock’s planned divestment

BlackRock has set out plans to rid its portfolio of coal companies. But for diversified miners that dig up an array of products, it’s not obvious which companies will be axed from the fund management giant’s active funds and which will stay.
Some big coal players may escape BlackRock’s planned divestment

The Dow is about to face its stiffest test in years

Nearly half of index, 14 out of 30 companies, expected to report holiday-season results in busiest week of the season.
The Dow is about to face its stiffest test in years

Investing in sustainability helps the planet and your portfolio

In Barron’s annual ranking of ESG funds, Leslie Norton finds that sustainable fund managers outperformed other actively managed funds.
Investing in sustainability helps the planet and your portfolio


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HANNEN: Province needs to optimize child care investments – Toronto Sun

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BY ANDREA HANNEN

This week, the Provincial Standing Committee on Finance and Economic Affairs received submissions from stakeholder groups offering input on Ontario’s spring budget.

These public consultations allow MPPs and citizens to work together to improve the performance of taxpayer spending.

The Association of Day Care Operators of Ontario (ADCO) was one of the groups that made a formal submission. ADCO represents Ontario’s independent licensed child care centres — those not run by a public sector organization such as a municipality or a school board, or a quasi-public sector organization such as a YMCA.

Most independent licensed child care centres are small businesses run by women. One of the things that distinguishes these child care providers from municipalities, school boards and quasi-public sector agencies is their ability to create new licensed child care spaces without burdening taxpayers with the cost of expansion.

Both the McGuinty and Wynne governments seemed to see these small businesses as barriers to the growth of institutional child care. That’s what the Full-Day Kindergarten program (FDK) was all about. It also seems to be what prompted the Wynne government to enact the Child Care and Early Years Act (CCEYA), which allows municipalities to limit the supply of licensed child care within their boundaries, so that parents have fewer alternatives to these institutional settings.

A 2019 report by the Ministry of Education reveals that some 2000 of Ontario’s licensed child care centres closed between 2008 and 2018.

In recent weeks, the impact of these closures has been felt by tens of thousands of Ontario parents as they struggled to find alternative care arrangements for their children when strikes by teacher unions shut down not only FDK but also licensed child care centres and before-and-after-school programs located in public schools.

For this reason alone, the Ford government should stop investing taxpayer dollars in school-based child care spaces.

It should also do so for financial reasons.

Currently, municipalities and school boards may receive anywhere from $30,000 to $60,000 per space to create more child care. Yet, independent licensed child care owner/operators are able to create similar, if not better, facilities for half this amount and they do it at no cost to taxpayers. All they need is assurance from the Province that it is safe for them to invest in expansion.

The province can provide this assurance by:

– Amending the Child Care and Early Years Act (CCEYA) with an eye to eliminating the provincial red tape and municipal conflicts of interest that make it harder for new independent licensed centres to open;

– Creating an online, self-serve portal where parents can explore, calculate and/or apply for the various child care funding support options available to them without having to consult with a municipal bureaucrat;

– Expanding the CARE tax credit so that more families qualify for it and fewer are forced into the chaos and uncertainty of the Provincial fee subsidy system, which is run differently by every municipality;

– Respecting parental choice by ensuring that fee subsidies follow children to whatever licensed child care programs their parents choose to use;

– Simplifying the Provincial funding formula used to allocate child care dollars to municipalities, so that less taxpayer money winds up being diverted into needless municipal overhead instead of actually helping families.

Currently, the province invests more than $3 billion annually into FDK and municipal child care system management. This investment needs to yield a better return.

At minimum, it should serve more families and be more responsive to their needs. It should also help shield children’s early years from the whims of big labour.

To achieve these goals, the province needs to stop burdening taxpayers with the cost of licensed child care expansion and start focusing on policy reforms that will enhance parental choice by increasing small business investment in the sector.

— Andrea Hannen is Executive Director of the Association of Day Care Operators of Ontario (ADCO)

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