Canada Must Step Up ‘global Energy Game,’ Says Ex-minister

Canada Dollar Rises to Three-Month High as Fed Retains Stimulus

The two-year notes dropped six basis points on the week. Canadas 10-year note yields fell seven basis points to 2.69 percent. Moving Average The loonies failure to stay above the 200-day moving average was due to Canadian companies that do business across the border taking the opportunity to buy U.S. dollars at the most attractive levels in three months, Spitz said. That and corporate buying of the U.S. dollar will serve to mitigate Canadian dollar gains going forward, he said. The currency fell yesterday as Canadas inflation rate slowed in August, with the consumer price index rising 1.1 percent (CACPIYOY) from a year earlier, following Julys 1.3 percent pace, according to a report from Ottawa-based Statistics Canada. The core rate, which excludes eight volatile products, slowed to 1.3 percent from 1.4 percent. Canadian retail sales in July are forecast to rise 0.6 percent after a 0.6 percent decline the previous month, according to the median estimate of 17 economists surveyed by Bloomberg. Statistics Canada will report the figures Sept. 24.

Canada to set up new markets watchdog but scope limited

(Sean Kilpatrick/Canadian Press) “This hard new reality that we are facing the so-called global energy game is one that we are forced into, and frankly one that we are not yet playing with sufficient skill, foresight or cohesiveness.” The energy industry is being radically transformed, and Canada has to diversify its energy market beyond the United States where 99 per cent of our energy exports now go, said Prentice. Canada is affected by the fact that the U.S. is well on the way to becoming the world’s largest oil producer and achieving energy self-sufficiency, said Prentice, who was giving the keynote address at a forum on Canada-U.S. business relations in Ottawa sponsored by the Canadian American Business Council. Canada needs new customers because it is selling its oil at 35 per cent less than the going global rate, he said. “That makes us a price-taker, not a price-maker.” Moreover, Prentice said, when the U.S. administration decided to delay the construction of the Keystone XL pipeline that would have carried Alberta oilsands crude to the U.S., there was nothing Canada could do about it. All of that amounts to a major vulnerability for Canada’s economy, said Prentice, now an executive at CIBC. Keystone pipeline just one issue Prentice played down the importance of the stalled Keystone XL deal which could be approved next year as well as the $15.1-billion bid by China’s state-owned CNOOC to buy Calgary-based Nexen Inc. Canada’s energy future is bigger than one pipeline deal, said Prentice, and while CNOOC-Nexen “is a big deal, it’s important, it’s not the main issue.” Harper was to address the group and participate in a question-and-answer session later in the day. Harper has made selling energy to Asian markets a priority after the rejection of the Keystone XL pipeline. U.S. President Barack Obama delayed the project after massive environmental protests in what was an election year. Harper has said that while he understood the realities of U.S. electoral politics, Canada needed to look elsewhere for energy customers.

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In the infamous Bre-X scandal of the late 1990s, investors lost billions of dollars after a massive gold find turned out to have been a fake. No one was ever charged with fraud, and the lone figure who was charged with insider trading was acquitted. Canada has been criticized by the International Monetary Fund for being the only advanced economy without a national capital markets regulator. The version of the plan revealed on Thursday is less ambitious than earlier efforts, but is designed to win over additional provinces before its 2015 launch. Still, the French-speaking province of Quebec, led by a separatist government, rejected the plan and hinted at fighting it in court. Flaherty said the agreement “represents the best of what can be achieved when a shared responsibility becomes a mutual goal.” He expects others to join the plan quickly, but the intention is to push ahead with the initiative even if there are holdouts. The three governments said they would enact provincial legislation and complementary federal legislation by the end of 2014 so that the new regulator can start operating in July 2015. TOUGHER WATCHDOG SOUGHT The new body will replace the Ontario Securities Commission, which is now Canada’s major securities regulator, and the British Columbia Securities Commission as well as their counterparts in any other provinces that choose to participate. The plan is intended to make it easier for companies and investors to navigate the system by eventually having a single set of rules nationwide, and to give Canada a single voice in global discussions of regulatory issues. Ontario Finance Minister Charles Sousa said the partial deal beat the alternative: a federal agency that Flaherty had threatened to create if he couldn’t reach a deal with the provinces. “To introduce yet possibly another federal regulator, with all the others included, would create an international reputational signal that would say, you know, we don’t have our act together,” Sousa said.