Will Donald Trump withdraw from NAFTA?

Posted by on Jan 24, 2017 in Donald Trump, Economy, NAFTA, News, Press Releases |

Donald Trump has stated that “NAFTA is the worst trade deal maybe ever signed anywhere.” He has vowed to renegotiate NAFTA, threatening to withdraw completely if more favourable terms for U.S. workers aren’t reached.  If he does withdraw the U.S. from the trade pact, the hardest hit sector would likely be the extremely interwoven automotive industry.  So how bad could this get?...

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Donald Trump said to plan orders approving Keystone, Dakota Pipelines today: report

Posted by on Jan 24, 2017 in breaking, Donald Trump, Energy, Keystone Pipeline, Press Releases |

President Donald Trump intends to take action today to advance construction of the Keystone XL and Dakota Access pipelines, according to a person familiar with the matter. TransCanada Corp.’s Keystone pipeline was rejected under former President Barack Obama, and Energy Transfer Partners LP’s US$3.8 billion Dakota Access project was stalled when the Obama administration halted work on land near Lake Oahe in North Dakota amid protests by Native American groups. The moves, taken on Trump’s fourth full day in office, illustrate his plan to fulfill his campaign pledge to give the oil industry more freedom to expand infrastructure, create jobs and ease transportation bottlenecks. RelatedCelebrating likely over for Dakota Access Pipeline protesters as Trump pledges to sweep away hurdles in U.S. oil’s wayObama had a pen, ‘Trump has an eraser’: New ‘America First Energy Plan’ lists early energy changesCanada scrambles to find ‘points of intersection’ with U.S. as energy policies diverge TransCanada climbed as much as 1.1 per cent to US$63.25 at 9:33 a.m. in New York. Energy Transfer Equity LP and Energy Transfer Partners LP climbed as much as 3.3 per cent and 1.7 per cent, respectively. TransCanada had no immediate comment on the president’s proposed actions and Energy Transfer didn’t immediately respond to requests for comment. A spokesman for the Standing Rock tribe that opposes the Dakota project says they’ll comment “if it happens.” White House press secretary Sean Spicer on Monday said Trump’s goal was to balance environmental protection and projects that can grow jobs and the economy. TransCanada may need to submit another formal application to build the pipeline. But the company’s plans for Keystone XL already have been vetted, with years of environmental scrutiny culminating in former president Barack Obama’s 2015 decision that the pipeline was not in the U.S. interest. TransCanada has not said it would reapply for permission to build the pipeline, but the day after Trump’s election, the Calgary-based company said it was looking for ways to convince the new administration of the project’s benefits to the U.S. economy. The company has previously said it remains “committed to Keystone XL.” Environmentalists fiercely battled the project, making it a flashpoint in broader debates about U.S. energy policy and climate change. Landowners in the pipeline’s path warned that a spill of dense crude could contaminate the Ogallala aquifer, a source of drinking water that stretches from Texas to South Dakota. And activists said it would promote further development of oilsands in Alberta that generally require more energy to extract. Dakota Access opponents say the pipeline would damage sites culturally significant to Native Americans and pose an environmental hazard where it crosses the Missouri River. Earlier this month, the Department of the Army withheld the final...

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Which Canadian large cap energy stocks you should buy and sell

Posted by on Jan 24, 2017 in Canadian Natural Resources Ltd., EnCana Corporation, Energy, Imperial Oil Ltd., Press Releases, Suncor Energy Inc., Trading Desk |

Encana Corp. is in, while Cenovus Energy Inc., Imperial Oil Ltd, and Suncor Energy Inc. are out. That’s the takeaway from Macquarie Capital Markets’ update on large cap Canadian energy stocks. “Because of the collapse in crude prices in 2014, we are nearly at the end of the major oil sands growth cycle that started in the mid-2000s,” analyst Brian Bagnell said in a research note. “For that reason, we believe there is a higher chance that oil sands weighted companies will distribute free cash to shareholders in the form of dividends and share buybacks than many U.S. and other global peers, especially if crude prices improve further.” Bagnell upgraded Encana from neutral to outperform, where it joins Canadian Natural Resources Ltd., as both companies offer production per share growth and free cash flow yields at the high end of the large cap peer group. Cenovus and Imperial fall at the other end of the spectrum, with Bagnell noting that the latter is at the very high end of the group’s range on a valuation basis. The analyst thinks this is unjustified given Imperial’s track record at the Kearl oil sands project. Both Cenovus and Imperial were downgraded to underperform from neutral. “Cenovus’ valuation is relatively more attractive, however, we believe better options exist for similar valuations,” he said. Meanwhile, Suncor was downgraded to neutral from outperform, despite appearing attractive in the near-term on growth and yield measures. However, Bagnell noted that profile falls off in later years. “We prefer Canadian Natural to Suncor despite their similar current valuations,” he said. The analyst also pointed out that he believes Canadian Natural and Imperial are the mostly likely candidates for a dividend hike in the near...

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Federal Court of Appeal dismisses First Nations’ challenge of B.C.’s Site C dam

Posted by on Jan 24, 2017 in diplomacy, News, Press Releases, Richard Boivin, U.S. Courts |

The Federal Court of Appeal has rejected a legal challenged filed by two British Columbia First Nations that argued the $8.8-billion Site C dam project violated their treaty rights. The Prophet River First Nation and the West Moberly First Nation appealed a Federal Court judge’s decision to deny an application for a judicial review of the federal government’s approval of the project. A three-member panel issued a unanimous decision Monday to uphold the earlier ruling, which rejected the First Nations’ claims that the environmental review and ensuing government approval should have assessed their treaty rights and determined whether the project infringed on those rights. “The (environmental assessment) process is an information-gathering process and not a process intended to result in a binding determination of aboriginal or treaty rights,” wrote Judge Richard Boivin on behalf of the panel. The case is the tenth court challenge of the massive hydroelectric dam project to be dismissed or discontinued, while four legal actions remain, BC Hydro spokesman David Conway said. Site C will flood more than 5,500 hectares of land along the Peace River in northeast B.C., creating an 83-kilometre-long reservoir and providing enough power to light up 450,000 homes a year. Project construction started in the summer of 2015 and is scheduled for completion in 2024. Prophet River and West Moberly are among the Treaty 8 First Nations, which signed a historic treaty in 1899 that granted them hunting, trapping and fishing rights within treaty territory. RelatedB.C. Premier wants share of Trans Mountain profits for province The appeal was dismissed with costs. The chiefs of the two First Nations and their lawyers did not immediately return requests for comment on Monday. The environmental review of Site C was conducted jointly by the federal and provincial governments. It examined the effects of the project on Aboriginal Peoples and rights and determined it would cause significant harm to fishing, hunting and other traditional uses of the land. The federal cabinet said these effects were justified in the circumstances when it approved the project in October 2014. The two First Nations filed an application for judicial review shortly after, and Federal Court Judge Michael Manson dismissed it in August 2015. He ruled that the Crown had fulfilled its duty to consult, and the First Nations didn’t appeal that element of the ruling. Boivin wrote in the ruling issued Monday that the bands did not provide adequate information to the environmental review process to support the allegation that Site C would violate their treaty rights. There’s no evidence that the rights of West Moberly and Prophet River cover the entire Treaty 8 area of 840,000 square kilometres, an area larger than the province of Manitoba, Boivin...

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Outgoing CP Rail boss barred from hiring managers except chief of staff

Posted by on Jan 24, 2017 in News, Press Releases, Rail Transportation |

MONTREAL, Jan 23 — The outgoing chief executive of Canadian Pacific Railway Ltd, said to be in advanced talks with a partner to shake up CSX Corp, cannot hire any CP management except its chief of staff, according to details of an agreement published on Monday. Hunter Harrison “cannot solicit or hire the company’s employees above the level of manager,” apart from chief of staff Mark Wallace, during a 36-month period, the separation agreement said. Canadian Pacific last week announced Harrison’s early departure from the railway company he led after activist fund Pershing Square tossed out the previous CEO in a 2012 proxy fight. Harrison and former Pershing Square partner Paul Hilal are said by a source to be teaming up to invest in CSX, with Harrison playing a similar leadership role to improve the company’s performance as he did at Canadian Pacific. Under the agreement filed on Monday, Harrison would be forbidden from working for CP rivals Canadian National Railway Co, BNSF Railway Co and Union Pacific Railway Co. CSX stock soared 20 percent following news of the...

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