Construction firms fear gridlock as Ottawa delays decision on Trans Mountain pipeline - Financial Post

CALGARY/OTTAWA – A one-month delay by the federal government to decide on the Trans Mountain pipeline expansion will drive up the costs of the project in a tight labour market and at a time when the Canadian oil industry has lost patience with the federal government, industry executives say.

Natural Resources Minister Amarjeet Sohi announced Thursday the federal government would make its reconsideration decision on the Trans Mountain expansion pipeline project between Alberta and British Columbia on June 18 – roughly a month later than its previous deadline of May 22.

Sohi said that affected First Nations requested more time for consultations on the project’s impacts. “The government has consistently said that a decision would only be made on the project once we are satisfied that the duty to consult has been met,” he said in a release.

In Edmonton, Jason Kenney, the incoming premier, said Trudeau had notified him Wednesday of the impending delay.

“I agreed with the Prime Minister that they need to make sure that they cross every T and dot every I when it comes to the federal government’s duty to consult,” Kenney said. “We certainly don’t want them to have to go back to the drawing board a third time.”

Work stalled on the Trans Mountain project following a Federal Court of Appeal decision overturning approvals last year, but the company, which was bought by Ottawa from Kinder Morgan Ltd. for $4.5 billion, has said it will be prepared once a decision is made.

“While we await that decision, we will continue doing what we can to be poised to re-start the expansion project,” Trans Mountain Corp. president and CEO Ian Anderson said in a release.

Despite these assurances, oil executives are angry at continued delays from the federal government, which also extended its deadline for consultations the first time the project was approved only to have those approvals overturned in court.

But concerns are emerging that the labour market could tighten just as Trans Mountain construction is set to begin.

“When Trans Mountain gets going, there’s going to be a migration of workers away from other projects,” said Matthew Deeprose, president and CEO of Vault Pipelines Ltd.

Deeprose said delays in pipeline construction make it difficult for contractors and subcontractors to retain workers and therefore can cause price estimates to creep up. Vault is not among the contractors building Trans Mountain but the company has taken part in a number of other major projects such as Enbridge Inc.’s Line 3 project, which is also delayed.

“It’s a very tricky waiting game,” he said. “It’s a huge point of frustration no matter what your politics are.”

One high-level executive at a company building a portion of Trans Mountain said some subcontractors are beginning to second guess their Trans Mountain commitments as a number of other natural gas pipeline projects get underway.

“Some of them are contemplating should they even hang onto (their Trans Mountain subcontracts) because there’s so much other work coming up,” the person said.

Several natural gas pipeline projects by TransCanada Corp. including the Coastal GasLink and North Montney Mainline projects are expected to increase competition for skilled labourers, raising costs across the industry.

Leaders in the oil and gas industry blasted the most recent delay on Thursday and said they were running out of patience with Ottawa.

“It just seems that there is not a desire to move forward with this project,” said Tristan Goodman, president of the Calgary-based Explorers and Producers Association of Canada. “Setbacks now are unacceptable. This is not an acceptable result.”

Goodman said the government’s actions in delaying a decision contradict its public statements about understanding the importance of the project.

The government had fulfilled its obligations laid out by the Federal Court of Appeal and, at this point, there is a growing risk that construction on the project could be delayed beyond this year – which would drive up costs for the project, he said.

A report released in Jan. 2010 from the Parliamentary Budget Office found a one-year delay to the $9.3-billion project would reduce its value to the federal government by $693 million. The report also showed that costs could escalate to a total of $10.4 billion.

“We’re not going to have an industry to deal with if we keep this up,” Goodman said.

Construction on the project came to an abrupt halt at the end of August 2018, when the Federal Court of Appeal ruled the federal government had not properly consulted with First Nations and the pipeline regulator had failed to account for impacts on marine wildlife.

Eight months later on the heels of a fresh regulatory review and consultations, the industry is looking for the project to restart.

“We think this is a critical project for our industry and for Alberta,” Cenovus Energy Inc. spokesperson Brett Harris said. “It needs to go ahead as soon as possible.”

With a file from Tyler Dawson

• Email: gmorgan@nationalpost.com | Twitter: geoffreymorgan

• Email: jsnyder@nationalpost.com | Twitter: jesse_snyder

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April 19, 2019 at 04:16AM

Tepid Reaction in Canadian Weedstocks Following Big Canopy Growth Corp (TSE:WEED) Acquisition - Midas Letter

Although Canopy Growth Corp (TSE:WEED) (NYSE:CGC) (FRA:11L1) delivered an unexpected surprise to the market yesterday, Canadian weedstocks have reacted with a collective yawn. This may be somewhat surprising to investors—many of whom were expecting this cross border M&A to send shock waves throughout the market. We explore further.

To recap, Canopy Growth administered an official press release this morning that confirmed yesterday evening’s hysteria. The company announced that they have entered into a definitive arrangement agreement that grants them the right to acquire 100% share ownership in Acreage Holdings Inc., at such time as cannabis production and sale becomes federally legal in the United States. All told, the transaction is valued at approximately US$3.4 billion on a fully-diluted basis—in both cash and stock—on a 0.5818 CGC – ACRG exchange ratio basis. 

Both companies will also execute a licensing agreement granting Acreage access to Canopy Growth’s brands such as Tweed and Tokyo Smoke, along with other intellectual property. Once the all rights are exercised, Acreage will become part of the world’s biggest and most expansive cannabis company. Until then, the two companies will continue to operate independently.

Given that M&A is traditionally one of surefire ways to spark animal spirits, why is the Canadian side of the market not responding? Perhaps the answer lies in timing.

As we’ve witnessed lately, Canadian weedstocks have been mostly weak outside of a few pockets of strength—cannabis oil stocks specifically. Remember, the weakness in HMMJ is occurring despite an historic melt-up rally in broad market indexes that are attaining new all-time highs. This shouldn’t occur in a strong market.

Disappointing earning report follow-through in Cronos Group, Tilray, CannTrust Holdings and Aphria has put a damper on near-term earnings expectations. Despite Canopy Growth blazing M&A trails, leading to today’s strong response ($61.78, $4.67, ↑8.18%), somehow it seems all too far away. The market sports a decidedly “show-me” attitude right now.

Hey, price action doesn't lie. Here's what the back half of March/early April looks like (HMMJ top, QQQ bottom). pic.twitter.com/ljn4c628CH

— Benjamin A. Smith (@BenjaminA_Smith) April 4, 2019

🐂$CGC news is not impacting CDN #weedstocks like some might have hoped. Market is up a paltry +1 percent on lackluster vol and price nowhere near changing $HMMJ current downtrend. I'd like to see a daily close above $21.03 before getting excited. Careful – Macro mkt looks toppy! pic.twitter.com/fZDNaIlNoI

— Benjamin A. Smith (@BenjaminA_Smith) April 18, 2019

As well, Canopy Growth’s announcement is completely contingent on U.S. lawmakers allowing cannabis production and sale becomes federally legal in the United States. Until that happens, the M&A taking place is only 1/2 complete. That doesn’t mitigate the importance of today’s announcement, but it does minimize its potential impact on price action in the marketplace right now. The importance of SAFE Banking Act/STATES Act (the first in progress; the second upcoming) legislation passing on Capitol Hill and signed into law have taken on a whole new meaning.

For its part, U.S, multi-state operators (MSOs) have fared much better today. The U.S. Marijuana Index is currently ↑2.56%—around 2.5x its Canadian benchmark counterpart (HMMJ)—although early euphoria has faded somewhat. Several leading MSOs touched high-single-digit and double-digit percentage gains, and have kept the majority of them. Ultimately, MSOs will be the biggest near-term beneficiaries of upcoming cross border M&A, even if much of the premium is tethered to Canadian acquirers stock prices. Once Canadian weedstocks prices turn around, both markets will benefit.

Midas Letter congratulates Canopy Growth for leading yet another forward-looking and market-changing initiative, at a time when collective market performance is rather skittish on the Canadian side. Just like in mid-August 2018, Canopy Growth has changed the narrative and given investors something to look forward to. We wouldn’t expect anything less from King Canopy.

Midas Letter will have additional coverage as events warrant.

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April 19, 2019 at 12:12AM

Toronto Stock Exchange sets record for highest close — here’s why - Global News

TORONTO — Canada’s main stock index closed at an all-time high Thursday as it overcame a correction late last year that saw it lose 17 per cent of its value.The S&P/TSX composite index gained 68.57 points to 16,612.81, surpassing the previous record close of 16,567.47 set last July.READ MORE: Canopy Growth signs deal to buy U.S. pot giant Acreage HoldingsStock markets are feeling “calm and bliss” following a reversal in language from central banks towards advocating a slow rise in interest rates, says Kash Pashootan, CEO and chief investment officer at First Avenue Investment Counsel Inc.“That has the market feeling much more comfortable and confident, which has continued to push equity markets higher,” he said in an interview.The TSX has recovered 2,832 points or 20.6 per cent since sinking to its December low.WATCH: What Canada’s 1st inverted yield curve in 12 years tells us


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April 19, 2019 at 05:07AM

Which Zoom? Mistaken-Identity Trades Send Tiny Stock Up 70,000% - Bloomberg

[unable to retrieve full-text content]Which Zoom? Mistaken-Identity Trades Send Tiny Stock Up 70,000%  Bloomberg

Zoom is surging. No, not that Zoom. Zoom Technologies Inc., a Beijing-based maker of mobile phone components whose shares traded for less than 1 cent each ...

View full coverage on Google News

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April 18, 2019 at 11:36PM

WestJet files appeal - Canada News - Castanet.net

Photo: The Canadian Press

WestJet Airlines Ltd. is going to the Supreme Court of Canada in an attempt to have a proposed class-action lawsuit launched by a former flight attendant thrown out of court.

The airline lost efforts to scuttle the action in both the B.C. Supreme and Appeal courts, but documents asking for leave to appeal filed with the high court say the case raises several questions of national importance.

Mandalena Lewis worked for WestJet for eight years and alleges in her legal action that the employer broke its promise to provide a harassment-free workplace for women.

WestJet claims in its filing that the high court needs to decide if the Canadian Human Rights Commission and Tribunal have exclusive jurisdiction over the claims of sexual harassment in a non-unionized, federal company.

The documents say if the case is allowed to proceed to court, the jurisdiction of the commission and tribunal have effectively been nullified, which couldn't have been the intent of Parliament when they were created.

Lewis alleges in her civil lawsuit that she was sexually assaulted by a pilot while on a stopover in Hawaii in 2010 and that WestJet breached its anti-harassment promise in her contract.

WestJet has denied allegations that it failed to take appropriate action after Lewis reported what happened.

Her lawsuit proposes to represent all current and former female WestJet flight attendants whose employment contract included the airline's anti-harassment promise.

Lewis issued a statement Thursday saying WestJet's individually signed employment contracts include an anti-harassment policy that surpasses what is required under the Canadian Human Rights Act.

Lewis says the company's attempt to appeal to the Supreme Court of Canada is a delay tactic "meant to wear down survivors seeking justice."

However, WestJet says in its application that by hearing the appeal, the Supreme Court would provide clarity to the law on the proper forum for systemic sexual harassment allegations, as between human rights bodies and class-actions in the courts.

Before an appeal is heard by the Supreme Court, one must ask the court for leave, or permission, to appeal. The court website says approximately 600 leave applications are submitted each year and only about 80 are granted.

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April 19, 2019 at 05:57AM

National Enquirer to Be Sold to James Cohen, Heir to Hudson News Founder - The New York Times

The National Enquirer, President Trump’s favorite supermarket tabloid, is about to have a new owner: James Cohen, a son of the founder of the Hudson News franchise. American Media Inc., the Enquirer’s publisher, announced the deal Thursday.

The money-losing title was put up for sale several weeks ago, after its principal owner no longer wanted to be associated with the magazine, which attracted the attention of federal investigators for its role in the 2016 presidential campaign, according to several people familiar with the matter.

American Media had been in talks with several potential buyers, including the California billionaire Ron Burkle, but those talks fell apart last week. Since then, Mr. Cohen, whose father started the chain of Hudson News shops, swooped in to purchase the troubled tabloid.

American Media, led by David J. Pecker, a longtime friend of Mr. Trump’s, has also agreed to sell the Globe and the National Examiner as part of the deal with Mr. Cohen. The Washington Post first reported on the sale, which it pegged at $100 million.

Image

James Cohen and his wife, Lisa.CreditNick Mele/Patrick McMullan, via Getty Images

The principal owner of American Media, the hedge fund Chatham Asset Management, led by Anthony Melchiorre, pushed Mr. Pecker to sell the tabloid after it found itself in the cross hairs of a federal investigation. Mr. Melchiorre no longer saw an upside in being associated with The Enquirer, and the tabloid’s financial losses and falling circulation numbers provided further motivation for a sale.

Mr. Pecker is said to have helped Mr. Trump’s candidacy through American Media’s deal to buy a story from Karen McDougal, a Playboy model who said she had an affair with the president. The company acquired it for $150,000 and never published it, following a practice known in the tabloid business as catch-and-kill. Federal prosecutors from the Southern District of New York gave Mr. Pecker an immunity deal in its investigation of the arrangement.

American Media also signed a non-prosecution deal with federal prosecutors. As part of the agreement, the company affirmed that it had made the payment to Ms. McDougal to “influence the election.” The deal, signed in September, also stipulated that American Media “shall commit no crimes whatsoever” for three years and that, if it did, the company “shall thereafter be subject to prosecution for any federal criminal violation of which this office has knowledge.”

That agreement has put American Media in a difficult position, now that federal prosecutors have started investigating claims by Jeff Bezos, the founder of Amazon, that he was threatened by the company. Mr. Bezos, the subject of an 11-page Enquirer investigation in January, accused American Media of extortion in a blog post.

Hudson News, founded by the Mr. Cohen’s father, Robert B. Cohen, was sold to the Swiss retail company Dufry in 2008. Mr. Cohen is no longer involved in the business but sits on the board of the new parent company.

This story will be updated.

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https://www.nytimes.com/2019/04/18/business/media/national-enquirer-james-cohen-hudson-news.html

2019-04-18 19:43:15Z
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Pinterest shares soar 25 percent on trading debut - UPI News

April 18 (UPI) -- Social media company Pinterest began its first day of trading at $23.75, up 25 percent from its initial public offering of $19 per share.

The move pushed Pinterest' market cap above $12 billion, compared to the company being valued at $10 billion had it stayed with the IPO topping out at $19.

Furthermore, the stock kept rising more than 28 percent to a market cap of $13 billion.

The company had raised $1.4 billion for its IPO.

Pinterest last saw a valuation in 2017, when a private funding round pegged it at $12.3 billion.

A valuation lower than $12 billion could have created losses for some investors, but the company's "road show" pitches ahead of its debut attracted investors, spurring the increase in share price.

The digital bulletin board debuted Thursday on the New York Stock Exchange in one of this year's big tech IPOs. It follows the debut of ride-hailing company Lyft earlier this month.

Pinterest, which traded under the ticker symbol PINS, originally set a price range of $15 to $17 per share but investors showed strong demand for the stock, which pushed the price up.

Atlantic Equities analyst James Cordwell said Pinterest is probably worth $16 billion, putting it on par with Snap Inc. Pinterests calls itself a "visual discovery" platform where people search for inspiration for food, clothing combinations, vacations, weddings or home decor.

"The ability to monetize that audience is much higher," Cordwell said. "When you're at Snap you're in the business of communicating with friends or wasting time; when you're going to Pinterest there's high purchasing intent: you're planning something, looking for a product. That's exactly what advertisers are looking for."

Founded in 2010, Pinterest has 265 million monthly users but experts say growth has slowed in recent years. Founder Ben Silbermann's stake is worth $1 billion at the IPO price. Various venture firms have similar stakes.

One of the year's most highly anticipated IPOs is that of ride-share giant Uber next month. Experts say it should be valued at more than $100 billion. Zoom Video debuted Wednesday and began trading Thursday. Other tech IPOs this year could include Slack Technologies Inc., Postmates Inc., Palantir Technologies and Airbnb.

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https://www.upi.com/Top_News/US/2019/04/18/Pinterest-to-debut-on-NYSE-with-value-of-10B/7021555584517/

2019-04-18 19:43:00Z
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