Jun. 21, 2019

ENERGY AND ENVIRONMENT

  • The Federal Cabinet has approved the construction of the Trans Mountain Pipeline expansion.
    • The pipeline will stretch 1,150km from Edmonton to Burnaby; increase shipping capacity by 590,000 bpd (15% increase to total Western Canadian shipping capacity)
    • Construction cost is expected to be more than the recent estimate of $7.4 billion and is expected to begin ‘this construction season’
    • Inland indigenous groups want to buy a stake while coastal groups will oppose
    • Strong legal opposition from environmental and coastal indigenous groups is expected
  • The Senate approved Bills C-69 (environmental review) and C-48 (tanker) by votes of 57/37 and 49/46. Senate accepted virtually no amendments supported by Alberta or the oil industry.
    • The Senate also passed Bill C-88 enshrining a moratorium on offshore drilling in the Arctic
  • Permafrost in the Canadian Arctic is thawing 70 years ahead of predictions indicating the climate is warmer now than any time over the past 5,000+ or more years.
  • New York State passed a ‘Green Deal’ requiring all electricity sources be emission-free by 2040.
  • Poland has blocked the EU’s proposal to end greenhouse gas emissions by 2050.

IMMIGRATION

  • Canada resettled the most refugees (28,100 of 92,400) in 2018 ahead of the US (22,900).
    • 1.4 million refugees had need of resettlement in 2018
    • During 2018, Turkey hosted 3.7 million refugees, followed by Pakistan (1.4m)
  • Trump says authorities will begin removing millions of illegal immigrants next week.
    • An estimated 12 million immigrants are in the US illegally
    • ICE will target families that have received removal orders from immigration courts
    • US Senate committee approved a $4.6 billion emergency spending bill for programs assisting families seeking asylum with housing, food and transportation
  • Mexico has agreed to hold Central American immigrants seeking asylum in the US until their cases are heard by US courts.

CANADIAN ECONOMY

  • Inflation in May was 2.4% vs 2% in April, core inflation was 2.1%, the highest since 2012.
    • Excluding energy (inflation of -0.1) the inflation rate would have been 2.7%
    • Fresh vegetables drove the increase, up 16.7% Y/Y
  • Job vacancies rose 9.6% in Q1 Y/Y creating 44,000 new vacancies.
    • Vacancies increased in 6 provinces lead by Quebec (23% increase) and BC (10.1%)
    • Vacancies in Alberta and Saskatchewan fell by 1.8% and 4.7% respectively

TIDBITS

  • The US Federal Reserve left the fed funds rate unchanged at 2.25-2.50%.
  • Mexico has become the first country to ratify CUSMA (or the ‘New NAFTA’).
  • Molson Coors will start selling a selection of pot beverages on Canadian shelves the first day they can be legally sold (expected Dec 16).
  • Shoppers Drug Mart is beginning a pilot program to track medical cannabis from seed to final product, looking to utilize blockchain to provide quality assurance to doctors and pharmacists.
  • The personal information of 2.7 million people and 173,000 businesses has been leaked by a Desjardin employee who improperly accessed and shared the information.
  • Canada has officially banned the import of shark fins making it the first country to ban both the import and export.