
U of M defence, security experts urge Canadians to watch what Trump does, not what he says
As Donald Trump continues to muse about making Canada the "51st state" and prepares to impose tariffs on Canadian goods, the U.S. president is moving Washington closer to Moscow.
If you find this topsy-turvy state of affairs bewildering, you're not alone. Trump's desire to hold talks with Vladimir Putin about ending the Russia-Ukraine war — and the U.S. vote on Monday against a United Nations resolution to blame Russia for the invasion — has shocked the director of the University of Manitoba's Centre for Defence and Security Studies.
"The Trump administration has decided that it can trust and align itself with adversaries more so than allies — and that's concerning for all allies," Andrea Charron said Tuesday in an interview.
Trump's move to thaw U.S. relations with Russia have left NATO allies in Europe considering how they can reduce their reliance on the United States for defence.
Canada, however, has fewer options, given our geography and the deeply integrated nature of North American defence.
In this regard, Charron has some advice for Canadians: Don't assume Trump's overtures to Putin will mean the worst for the future of NATO or Canada's close, 85-year-old military alliance with the United States.
At least not yet.
"One of the things we've learned from the first Trump administration is he makes a lot of pronouncements, but then we have to sort of wait and see how he follows through," Charron said.
"This might be the start of a bromance between Trump and Putin, but the proof is going to be in the pudding about, 'OK, well, what is it then that Russia can supply to the U.S.?'"
In a theoretical one-for-one swap, Russia doesn't have much to offer the United States as a strategic or economic replacement for Canada, its closest military and trading partner.
James Fergusson, a senior scholar at the U of M's Centre for Defence and Security Studies, said Trump's overtures to Moscow harken back to the periods during the Cold War, when the U.S. and Soviet Union held talks to ensure they could peacefully co-exist.
Like Charron, Fergusson said Canada-U.S. defence is too integrated to be disentangled, even when there are tensions between Ottawa and Washington.
"I don't think we're at this stage of a complete realignment. Certainly the emotional rhetoric that we've seen coming out of this government and elsewhere implies this is where we're headed down the road," Fergusson said Tuesday in an interview.
Instead, he suggested this moment in history provides Canada with the impetus to follow through on longstanding commitments to increase defence spending, particularly when it comes to surveillance of the vast Canadian Arctic.
"This is a great irony: Trump is going to be good for us. We may finally have to get our house in order," Fergusson said.
Fergusson urged Canadians to pay more attention to what Donald Trump does, compared to what the mercurial president says he will do.
"Don't be emotional, be practical and be objective as we can," he suggested, describing the rising nationalism in Canada as understandable but not useful when it comes dealing with Trump.
"The rhetoric won't help the relationship. We know how he responds to these things," he said. "We have got to try to be more mature than him."
While Canada's close military alliance with the United States dates back to the Second World War, the two nations have had disagreements about defence over the decades.
During the Cuban missile crisis, Canada initially refused to support the U.S. naval blockade of Cuba or allow the U.S. to place nuclear-armed Bombers on Canadian soil.
Canada also declined to support the Vietnam War or the U.S. invasion of Iraq during the Second Gulf War.
In this context, Canada's full-throated support for Ukraine's territorial integrity and the potential U.S. support for a ceasefire that could allow Russia to maintain its Ukrainian holdings is only the latest difference of opinion, as disorienting as it may be.
It would be rash to assume this disagreement means the United States can no longer belong to NATO, Charron said.
"I think the allies are prepared to do a lot of bending to keep the U.S. as a member," she said, adding there have been other problematic members of the 32-member NATO alliance, most notably Hungary and Turkey.
"It's not perfect. There are certain members that do more than others. There are certain members who are more helpful than others. But together, that alliance is stronger than any one adversary out there."
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Winnipeg Free Press
38 minutes ago
- Winnipeg Free Press
Letters, June 9
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Winnipeg Free Press
39 minutes ago
- Winnipeg Free Press
Finding what's missing in the Winnipeg housing market
Opinion Last week, Winnipeg city council spent several long days and late nights debating a sweeping set of zoning bylaw amendments that could fundamentally change how our city is built in the future. Like all Canadian cities that signed on to the federal government's Housing Accelerator Fund (HAF), Winnipeg is being asked to revamp its planning policies to allow greater density and more diverse housing types to be built in every neighbourhood across the city. The federal government recognizes that if we are going to build more housing supply in cities to balance market demand and create more affordability, it can't be accommodated by simply expanding outward in sprawling low-density suburbs. Brent Bellamy photo New rules for infill housing can invigorate Winnipeg neighbourhoods. The costs of infrastructure and municipal services can no longer be supported by low density growth, evidenced by increasing taxes, reduced services, and deteriorating infrastructure. 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Globe and Mail
2 hours ago
- Globe and Mail
Stocks Climb on Hopes of Easing US-China Trade Tensions
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Stocks also garnered support from today's economic news that showed the US trade deficit in April shrank to a 20-month low, a positive factor for Q2 GDP. Stocks were under early pressure today on concerns about the US labor market after weekly jobless claims unexpectedly rose to a 7-3/4 month high. Also, today's downward revision to US Q1 nonfarm productivity and upward revision to Q1 unit labor costs were bearish for stocks. In addition, higher bond yields are negative for stocks as the 10-year T-note yield is up +3 bp to 4.39% as it rebounded from a 4-week low of 4.31% on negative carryover from a slide in 10-year German bunds after ECB President Lagarde said the ECB was nearing the end to its rate cutting cycle. US weekly initial unemployment claims unexpectedly rose +8,000 to a 7-3/4 month high of 247,000, showing a weaker labor market than expectations of a decline to 235,000. The US Apr trade deficit shrank to a 20-month low of -$61.6 billion, narrower than expectations of -$66.0 billion. US Q1 nonfarm productivity was revised lower to -1.5% from -0.8%. Q1 unit labor costs were revised upward to 6.6% from the previously reported 5.7%. Comments Wednesday evening from Minneapolis Fed President Kashkari signal he favors keeping interest rates steady when he said, 'The economy is seeming like it's pretty resilient so far, and so for me right now is the time to get data, see how the tariff negotiations shake out before we reach any firm conclusions about the direction of interest rates.' The markets are discounting the chances at 1% for a -25 bp rate cut at the next FOMC meeting on June 17-18. The markets this week will focus on any fresh trade or tariff news. On Friday, May nonfarm payrolls are expected to climb +125,000, and the May unemployment rate is expected to remain unchanged at 4.2%. Finally, May average hourly earnings are expected to rise +0.3% m/m and +3.7% y/y. Overseas stock markets today are mixed. The Euro Stoxx 50 is up +0.02%. China's Shanghai Composite climbed to a 1-1/2 week high and closed up +0.23%. Japan's Nikkei Stock 225 closed down -0.51%. Interest Rates September 10-year T-notes (ZNU2 5) today are down -5 ticks. The 10-year T-note yield is up +3.0 bp to 4.385%. Sep T-notes today fell from a 4-week high, and the 10-year T-note yield rose from a 4-week low of 4.310% and is moving higher. T-notes gave up early gains today and turned lower as stocks rallied on hopes of easing US-Chian trade tensions after the Xinhua news agency reported that President Trump and President Xi Jinping spoke by telephone today. T-notes also have a negative carryover from a slide in 10-year German bunds on hawkish comments from ECB President Lagarde, who said the ECB is nearing the end of its rate-cutting cycle. In addition, T-notes fell after today's news that showed US Q1 nonfarm productivity was revised downward and Q1 unit labor costs were revised higher. T-notes today initially moved higher when weekly US jobless claims unexpectedly rose to a 7-3/4 month high, a sign of labor market weakness and a dovish factor for Fed policy. Also, an easing in inflation expectations is bullish for T-notes after the US 10-year breakeven inflation rate fell to a 3-week low today at 2.297%. European government bond yields today are moving higher. The 10-year German bund yield rebounded from a 4-week low of 2.476% and is up +5.8 bp to 2.587%. The 10-year UK gilt yield rebounded from a 3-1/2 week low of 4.554% and is up +2.1 bp to 4.628%. Eurozone Apr PPI fell -2.2% m/m and rose +0.7% y/y, weaker than expectations of -2.1% m/m and +1.1% y/y. German Apr factory orders unexpectedly rose +0.6% m/m, stronger than expectations of -1.5% m/m. The ECB, as expected, cut the deposit facility rate by -25 bp to 2.00% from 2.25% and said, 'Inflation is currently at around the Governing Council's 2% medium-term target.' ECB President Lagarde said risks to growth 'tilted to the downside' as recent survey data points to weaker near-term prospects for the Eurozone economy. However, a stronger labor market and rising incomes will help the economy, and she wouldn't exclude further upward revisions to growth. She added that the ECB is getting toward the end of its rate cut cycle with today's rate cut. Swaps are discounting the chances at 42% for a -25 bp rate cut by the ECB at the July 24 policy meeting. US Stock Movers The strength of chip makers is supportive of the broader market. Micron Technology (MU) is up more than +4% to lead gainers in the Nasdaq 100. Also, ARM Holdings NV (ARM), Texas Instruments (TXN), ASML Holding NV (ASML), Applied Materials (AMAT), and Microchip Technology (MCHP) are up more than +1%. In addition, Lam Research (LRCX) and Analog Devices (ADI) are up more than +0.90%. Mining stocks are climbing today as the price of gold rose to a 4-week high and silver prices soared to a 13-year high. As a result, Freeport-McMoRan (FCX) is up more than +4%, and Anglogold Ashanti Plc (AU) is up more than +1%. MongoDB (MDB) is up more than +15% after reporting Q1 adjusted EPS of $1.06, well above the consensus of 67 cents, and raising its 2026 adjusted EPS forecast to $2.94-$3.12 from a previous estimate of $2.44-$2.62, stronger than the consensus of $2.60. Five Below (FIVE) is up more than +7% after reporting Q1 comparable sales rose +7.1%, better than the consensus of +6.37%, and forecast 2026 comparable sales will climb +3% to +5%, the midpoint above the consensus of +3.78%. Dollar Tree (DLTR) is up more than +7% to lead gainers in the S&P 500 after JPMorgan Chase upgraded the stock to overweight from neutral with a price target of $111. Verint Systems (VRNT) is up more than +6% after reporting Q1 adjusted EPS of 29 cents, better than the consensus of 19 cents. Brown-Forman (BF.B) is down more than -17% to lead losers in the S&P 500 after reporting Q4 net sales of $894 million, well below the consensus of $968.4 million. PVH Corp (PVH) is down more than -17% after cutting its 2026 adjusted EPS forecast to $10.75-$1.00 from a previous forecast of $12.40-$12.75, well below the consensus of $12.46. Ciena Corp (CIEN) is down more than -11% after reporting Q2 adjusted EPS of 42 cents, weaker than the consensus of 52 cents. Tesla (TSLA) is down more than -3% to lead losers in the Nasdaq 100, adding to Wednesday's -4% slide, after reporting its May vehicle shipments from China fell -15% y/y to 61,662 units, the eighth straight monthly decline. Costco Wholesale (COST) is down more than -2% after reporting May total comparable sales rose +4.3%, weaker than the consensus of +4.7% Procter & Gamble (PG) is down more than -1% to lead losers in the Dow Jones Industrials after announcing it expects to take a $1.6 billion charge over the next two years as it cuts its workforce by 7,000 or 15%. Earnings Reports (6/5/2025) Broadcom Inc (AVGO), Brown-Forman Corp (BF/B), Ciena Corp (CIEN), Docusign Inc (DOCU), Lululemon Athletica Inc (LULU), Toro Co/The (TTC), Vail Resorts Inc (MTN).