Varcoe: ATCO head says separation talk 'impacting investments now,' as Canada aims to be energy superpower
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ATCO Ltd. chief executive Nancy Southern is feeling optimistic about the federal government's focus on building major projects across Canada — but concerned about the effect separation talk in Alberta is having on business investment.
During the Calgary-based company's annual meeting on Wednesday, Southern spoke about the Carney government's commitment to developing energy corridors and getting new infrastructure built.
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CBC
3 hours ago
- CBC
Indigenous business leaders support push to build major projects — but want 'terms that work for us'
Social Sharing Indigenous business leaders gathered outside Calgary this week for an energy industry conference say they're not opposed to building major projects quickly — in fact, they're all for it. But as Ontario and B.C. pass bills criticized by First Nations in those provinces for trampling on their rights in the service of fast-tracking infrastructure, they warn that Canada risks backsliding into a more contentious relationship with Indigenous communities that will ultimately delay projects further. "Broadly speaking, are First Nations or Indigenous communities opposed to development? Absolutely not. Are we opposed to resource projects? Absolutely not. Energy generation? Absolutely not. We want to participate on terms that work for us," said John Rowinski, CEO of the Zhooniya Makak Limited Partnership with Hiawatha First Nation, who is from the Mohawks of the Bay of Quinte near Belleville, Ont. "Frankly, they would likely find much less opposition to these projects if they showed a willingness to talk in advance as opposed to after the fact," he said in an interview. WATCH | Why Ontario's Bill 5 has sparked opposition: Ontario passes Bill 5 despite opposition from First Nations, environmental groups 2 days ago Duration 2:39 Doug Ford's government has passed the controversial Bill 5 that aims to speed up mining projects and other developments in areas deemed to have economic importance. As CBC's Lorenda Reddekopp reports, the move has sparked outrage among First Nations and environmental groups. Amid an increasingly tumultuous trade relationship with the U.S., politicians at both the federal and provincial levels have been scrambling to show they can get major projects built quickly and boost the country's economy. But recent bills passed in Ontario and B.C. aimed at speeding up major projects have already been subject to significant criticism from First Nations. In both provinces, the legislation includes an aim to fast-track projects that could include critical mineral mines and has been met with concern from First Nations that it could trample over their rights. In Ontario, Premier Doug Ford has said he will consult with First Nations over the coming months, while in B.C., Infrastructure Minister Bowinn Ma said she will "work to come back together" and heal any rifts that have been created. The federal Liberal government also tabled a bill Friday that pledges to advance national interest projects, in part by speeding up approvals from five years to two. The Assembly of First Nations, which met with Prime Minister Mark Carney on Thursday, has previously said that while it supports efforts to protect Canada from geopolitical uncertainty, it had concerns that draft legislation could " violate many collective rights of First Nations." In a statement, a spokesperson for the federal government said the proposed act recognizes that Indigenous consultation and partnership are key to building projects in the national interest. "To that end, Section 35 rights are constitutionally protected. There is no possibility of any government overriding those rights. This legislation acknowledges that and considers Indigenous consultation and partnership as integral," said Gabriel Brunet, a spokesperson for Dominic LeBlanc, who is the minister responsible for Canada-U.S. trade and intergovernmental affairs. Pro-development, to a point Business leaders gathered in Alberta this week say they agree with the urgency of getting projects built and diversifying trade away from the U.S. "I see Canada as one of the richest countries in the world with our resources, we just need to get it to market," said Karen Ogen, CEO of the First Nations Natural Gas Alliance and former elected chief of the Wet'suwet'en First Nation in B.C., speaking on the sidelines of the Indigenous Cleaner Energy Forum on Tsuut'ina Nation, just west of Calgary. Until this point, Ogen said Canada had been making progress in how capital projects are built in partnership with First Nations, with more and more communities participating through an equity stake. She pointed to the in-development Cedar LNG project off the coast of B.C., a collaboration between Calgary-based Pembina Pipeline Corp. and the Haisla First Nation. "That's a showcase for the rest of Canada, for the rest of B.C., that this is how projects get built." WATCH | First Indigenous-owned natural gas export facility in the world approved in B.C.: B.C. approves first Indigenous-owned LNG project in Canada 2 years ago Duration 1:57 Another positive step, Ogen said, is the Indigenous Loan Guarantee Program, which facilitates access to capital for Indigenous communities and was recently doubled from $5 billion to $10 billion. But Ogen said the bills out of Ontario and B.C. are a move in the wrong direction, and that First Nations won't be afraid to push back. "If there's going to be opposition and blockades, so be it, the government has to listen," said Ogen, who noted the federal bill does seem to include Indigenous people, but that she hopes this inclusion is meaningful. Steven Vaivada, CEO of Scout Engineering and a member of the Kainai First Nation in southern Alberta, agrees. He said that while Canada certainly needs more development, governments could end up undermining their own plans if they try to rush projects forward without including First Nations. "Indigenous opposition occurs when rights and title and the duty to consult and free, prior and informed consent are not incorporated into these discussions and legislation that's put forward," he said in an interview. In the long run, Glenn Hudson, former Chief of Peguis First Nation in Manitoba, said collaboration with First Nations will also help ensure projects are built with sufficient environmental protection. "That in itself will also protect the settlers of this country in terms of their sustainability going forward," Hudson, who is also CEO of Sovereign Energy Projects, told CBC News. As global demand for electricity ramps up, Rowinski, with the Zhooniya Makak Limited Partnership, said there's plenty of opportunity for Canada — but dialogue between different levels of government and First Nations is critical. "We're very fractured as a nation right now," he said. "We've got a history that we can learn from, so it's time to sit down, roll up our sleeves and work together to build on from that history so the future is that much better."
Winnipeg Free Press
4 hours ago
- Winnipeg Free Press
TACO time
Opinion The stock market says, 'Yes.' And the bond market says, 'No.' This sums up much of the recent sentiment about the economy in the United States, and for that matter the global economy, amid the back-and-forth policies of U.S. President Donald Trump. Stocks have largely recovered their losses this year, as investors believe the One Big Beautiful Bill Act — with its tax cuts largely focused on the wealthy — will power a surge in growth. Michael Probst / The Associated Press files The curve of the German stock index DAX is seen in the background as U.S. President Donald Trump is shown on a TV screen at the stock market in Frankfurt, Germany. What's more, many investors ascribe to 'TACO', a term coined by a Financial Times columnist that stands for 'Trump always chickens out,' meaning most of the tariffs threats are bluster meant to make him appear to be a master deal-maker and they won't be here to stay. 'That is quite a diverging opinion from what the bond market is saying,' says Jonathan Baird, Toronto-based editor and publisher of the Global Investment Letter. Bond investors view the One Big Beautiful Bill as a recipe for inflation, eventually adding more than US$3.8 trillion to the annual budget deficit. Tariffs, too, are inflationary, which further make the case for more investors to sell their U.S. bonds. Average investors, not Wall Street, are likely feeling indecisive and maybe even fearful. A dose of caution is warranted, says John De Goey, portfolio manager with Design Wealth Management in Toronto, and author of Stand Up to the Financial Services Industry. Even without Trump-induced mayhem, 'stocks are very expensive and therefore very risky.' He points to the cyclically adjusted price-to-earnings — or CAPE — for the S&P 500. CAPE helps determine if an investment — based on a 10-year average of inflation-adjusted earnings — is valued appropriately. Right now, the S&P 500 is highly overvalued, according to CAPE. De Goey says the metric may not be a good predictor of bear markets. 'But it's extremely reliable for determining what the annualized return will be for the asset class … over the next decade,' he says. 'So when the S&P 500 is in the 30s or higher, the return over the next decade has historically been around zero.' The CAPE for the world's largest stock index has been about 35 in recent weeks. What's more, many seasoned investors see a decade ahead that could be similar to the 1970s when 'stagflation' weighed on markets. Characterized by higher than normal inflation and slow economic growth, stagflation can be toxic for stock and bond returns. 'I would suggest probably being as defensive as you're comfortable being,' says Baird, who expects stagflation to be a problem for the next few years. He doesn't recommend moving all of the portfolio to cash to preserve capital. That is tricky to time correctly on getting out of the market and, even more so, getting back into the market. Broadly, stagflation fighting strategies should focus less on growth stocks. Instead, consider companies selling goods and services consumers can't go without — like groceries and housing. Bonds should have shorter durations to reduce the impact of inflation. Commodity- and currency-based strategies can also provide some upside amid volatility. As well, alternative investments — private equity and credit, private real estate and hedge funds — are increasingly used by portfolio managers. 'The low-hanging fruit is increasing alternatives exposure,' De Goey says, noting these assets are less correlated to stock and bond markets, providing portfolio stability. Previously only available to wealthy investors, alternatives are now widely available as mutual funds and exchange-traded funds (ETFs). That said, investors should still own stocks, including those in the U.S., but they should consider reducing exposure to overvalued companies like the so-called Magnificent Seven (including Amazon Inc., Tesla Inc., Apple Inc. and Meta Inc.), says Jai Gandhi, investment adviser with Endeavour Wealth Management, iA Private Wealth in Winnipeg. 'We're not cutting our weight to the U.S. market compared with a year ago, but we're conscious of the high values of companies that hold more risk.' That said, owning good companies never goes out of style for long-term investors. 'We don't worry too much about short-term price movements,' says Hardev Bains, president and chief investment officer at Lionridge Capital Management in Winnipeg. Rather, the focus for Bains and other fundamental investors is owning companies with long-term profitability growth, strong balance sheets (significantly more assets than liabilities) and competitive advantages. These companies, however, are only purchased when their share price reflects fair value relative to those qualities. What's more, even holding great companies can be risky when they become steeply overvalued. At that point, it's worthwhile selling those holdings or at least reducing their portion in the portfolio. 'Part of our discipline is if we sell companies and can't find anything to buy — which happens in periods of expensive markets — we go to cash, as we're doing right now,' Bains says Companies may have great business models, but their share price today is generally too high to purchase with a margin of safety. Still, Lionridge's equity portfolio obviously must hold stocks — currently about 20 companies that are likely to weather stagflation and even a recession better than other stocks. A recession is likely already underway, De Goey notes, pointing to gross domestic product (GDP) in the first quarter contracting in the U.S. 'No reasonable person expects the economy to grow in Q2 given tariffs are now having more of an impact.' Monday Mornings The latest local business news and a lookahead to the coming week. The best companies should remain profitable, and market drops will put their shares on sale from time to time, Baird says. In the meantime, beware of FOMO — fear of missing out — when markets surge higher, he adds. That often leads to buying high and, worse, selling low in a knee-jerk reaction to markets plunging in fear. 'We're all fallible and prone to psychological traps,' Baird adds. 'So the biggest thing for any investor is managing our emotions.' Joel Schlesinger is a Winnipeg-based freelance journalist joelschles@
Japan Forward
10 hours ago
- Japan Forward
Japan Trials First Full-Flat Sleeper Bus
Japan's first trial run of a highway bus with full-flat seats is now underway, aiming to challenge the common view of night buses as cramped and tiring. The seats were jointly developed by Kochi-based operator Kochi Ekimae Kanko, a local model-making company, and a machinery manufacturer. Made entirely in Kochi, they meet the full-flat seating guidelines introduced by the Ministry of Land, Infrastructure, Transport and Tourism in November 2024. Since March, Kochi Ekimae Kanko has been operating a weekly round trip between Tokyo and Kochi on a trial basis, receiving positive feedback. With hotel prices climbing due to increasing inbound tourism, the service also aims to appeal to cost-conscious travelers. The full-flat seats are called Sommeil Profond, French for "deep sleep." Two rows of seats, front and back, convert into bunk-style beds, creating a private space similar to a capsule hotel. A large coach was remodeled to accommodate 24 seats across 12 bunk-style units arranged in three rows. The trial service began on March 11, running once a week between Tokyo and Kochi or Tokushima. The longest stretch of the trip takes about 13.5 hours one way. Passengers can stay fully reclined the entire time. Each seat is enclosed by curtains for privacy and comes with amenities like a blanket and pillow, offering a semi-private experience. The regular fare is expected to be around ¥13,000 JPY (about $90 USD), though the trial price has been set between ¥7,000 and ¥7,500. On the morning of May 21, the trial bus arrived at Kochi Station fully booked with passengers traveling for sightseeing or business. Yukari Ikezawa, a 37-year-old office worker from Kochi who took the round trip, said, "The vibrations bothered me a little, but on the way back, I was so tired I slept soundly. I felt much less fatigued compared to a regular bus." A company representative added, "These seats significantly reduce fatigue compared to standard ones. And since passengers can sleep while traveling, it also helps cut down on hotel expenses." Seats arranged to make full-flat "beds." (Courtesy of Kochi Ekimae Kanko) About 30 years ago, Kochi Ekimae Kanko's Chairman Kuninori Umehara saw sleeper buses during a visit to China. The company considered bringing the concept to Japan but had to put the idea on hold due to the lack of a legal framework at the time. Around 10 years ago, the company confirmed that there were no regulations on seat reclining angles. This opened the door to the idea of converting traditional seat designs into fully flat beds, and development began. Creating bus seats involves specialized knowledge and technical skills. To take on the challenge, the company partnered with local model maker Thermal Kobo and industrial machinery manufacturer Kakiuchi. Together, they repeatedly refined prototypes that could fold flat, maximize cabin space, and meet safety standards. They also consulted closely with Japan's transport ministry. It was determined that as long as the seats could return to an upright position, the bus would pass inspection under the Road Transport Vehicle Act. At the time, international safety standards for vehicle seating were based on a 25-degree seatback angle, and there was no established method to assess the safety of fully flat seats. However, as global discussions around safe seating in various postures began to grow, the ministry anticipated rising demand and introduced formal guidelines in November 2024. The guidelines require the following: A fall-prevention plate that can withstand 900 kilograms of force Two-point seatbelts Padding and safety features to prevent falls from the head and sides Clear evacuation routes and secure luggage storage Kochi Ekimae Kanko refined its design to meet these standards and successfully turned the concept into reality. Since the trial began, buses equipped with Sommeil Profond seats have been nearly full. Surveys show that about 80% of users gave the ride high marks, especially for reduced fatigue and improved sleep quality. The most common complaint, however, was the narrow bed size. In bed mode, each seat measures 180 cm (5.9 ft) in length, 48 cm in width, and 51 to 73 cm in height, depending on the seat. Some larger passengers reportedly have to curl up to fit. "There's definitely room for improvement," said a company representative. "But seat size is closely tied to pricing, so we have to be careful when considering any changes to the design." Wider seats would improve comfort but reduce the total number of seats. Since operating costs per bus trip — such as fuel — are mostly fixed, fewer seats would lead to higher fares. For reference, a standard 28-seat, three-row bus charges about ¥10,000 on the Kochi–Tokyo route. The full-flat model accommodates 24 seats, allowing fares in the ¥13,000–¥14,000 range. Passengers have also requested more storage space and power outlets. The company is reviewing these suggestions and plans to expand service this fall with two buses offering four round trips per week. Looking ahead, Kochi Ekimae Kanko aims to market the Sommeil Profond model nationwide. Talks are already underway with bus operators in Tohoku and Kyushu, and interest has been strong. A representative said, "Eventually, we believe half of all overnight highway buses could adopt full-flat seating. By switching between upright and flat modes, these buses could even serve as a new option for inbound tourism. We want to keep improving and expand this model across Japan." ( Read the article in Japanese . ) Author: Koji Maekawa, The Sankei Shimbun
