Prime Minister Mark Carney’s Canada Investment Summit in Toronto has entered its second day, as the government looks to drum up billions in commitments to jumpstart the economy.
Fund managers controlling upwards of $120 trillion in assets have travelled from as far abroad as Australia and Singapore, as well as from the United States. They are here to evaluate infrastructure projects such as pipelines, ports and transportation networks and explore opportunities in Canada’s resource sector, from energy to critical minerals.
- For more in-depth coverage from the Canada Investment Summit, click here.
The summit formally kicked off with a gala dinner Monday night in Toronto. Earlier in the day, we saw major commitments from Canadian banks and a prioritized tax ruling from the Canada Revenue Agency.
Tuesday’s agenda includes a series of fireside chats and panel discussions with Canadian financial leaders and private one-on-one meetings where discussions of private mandates can take place.
Here’s the latest news from the Canada Investment Summit:
Carney: Ottawa to raise tens of billions by privatizing airport operations
Prime Minister Mark Carney kicked off the main day of the Canada Investment Summit Tuesday by announcing that Canada will seek private investment to operate the country’s four biggest airports and use the capital raised — expected to be in the “tens of billions of dollars” — to reinvest in other priorities.
“Following best practice in other countries, the Government of Canada will retain ownership of the underlying land and assets, but we will unlock their true value, by bringing in new capital and expertise into their operations and growth,” Carney said in his opening remarks.
The four largest airports are Toronto Pearson, Vancouver International, Montreal Pierre Elliott Trudeau International and Calgary International.
“Canadian pension funds already invest successfully in many airports around the world. It is time to bring that same expertise home to more directly benefit all Canadians,” Carney said.
The prime minister also said during the address that the government is on track to balance its “operating budget” ahead of schedule next year, “while maintaining the lowest overall deficit in the G7.”
Carney’s government split the budget into operating and capital segments.
–Financial Post Staff
The world is becoming more dangerous, says Carney
“Sovereignty and openness are now in tension. Economic integration is being weaponized. Tariffs are used as leverage,” Prime Minister Mark Carney said. “Financial plumbing as coercion. Supply chains as vulnerabilities to be exploited.”
He said in such a situation, “First, we must take care of ourselves,” and that means building strength at home and diversifying trade partnerships abroad.
He also reiterated the federal government’s goal of catalyzing $1 trillion of investment in Canada over the next five years in sectors such as energy, transportation, data and defence.
“We are unleashing our full potential as an energy superpower,” he said.
Canadian businesses now enjoy tariff-free access to 1.5 billion consumers, Carney said, and Ottawa intends to double that through new trade deals from the Association of Southeast Asian Nations (ASEAN) to India over the next six months.
He also had a message for the United States.
“We will always be neighbours and Canada will continue to be the U.S.’s most important partner in many key areas,” he said. “After all, even at times of disagreement during our long history, we have always maintained deep ties.”
But these arrangements will only work when “we engage as true partners that respect each other’s traditions and sovereignty.”
He said Canada will be an even better partner, one that’s stronger, more resilient and more independent, when those opportunities return.
— Naimul Karim
CPP, Brookfield launch $50-billion Maple Fund
The Canada Pension Plan Investment Board and Brookfield Asset Management Ltd. have announced a new $50-billion Maple Fund for large-scale investments in Canada, including funding for critical infrastructure and “strategic industries.”
The fund, which will be a joint cooperation framework, will structure the investments on a 50-50 basis, with up to $25 billion in equity capital from each organization over an initial five-year period.
According to a news release, the Maple Fund will focus on opportunities with total project values greater than $5 billion in equity capital. Other investors are also welcome to partner with the two companies to expand the capital and capabilities on individual investments.
Each project will be independently assessed and approved by CPP Investments and Brookfield.
The new fund was announced as investors attend Prime Minister Mark Carney’s investment summit in Toronto, which aims to attract trillions of dollars in new investment for various projects across Canada over the next five years.
“Canada is entering a period of new ambition to advance major projects and build for the future, creating compelling investment opportunities across the country,” said John Graham, chief executive of the Canada Pension Plan Investment Board, in the release Tuesday morning.
“The Maple Fund positions us well to meet this moment and move with speed on opportunities of unusual scale and complexity when they offer compelling value for the CPP Fund.”
Connor Teskey, chief executive of Brookfield Asset Management Ltd., said the Maple Fund can help drive a generational investment program that will invest in critical infrastructure, industries and businesses that will, in turn, support the growth of globally competitive Canadian businesses.
— Paula Tran
What’s on the docket today?
Tuesday’s docket at the Canada investment summit is packed with big name CEOs and investment powerbrokers from around the world. Here is a look at some of the highlights.
Morning sessions
- 8:50 AM: Prime Minister Mark Carney delivers keynote address and fireside chat.
- 9:20 AM: Panel session on critical minerals featuring Tim Gitzel, chief executive of Cameco Corporation and Jonathan Price, chief executive of Teck Resources Ltd.
- 9:55 AM: Panel session on technology featuring Aidan Gomez, chief executive of Cohere Inc. and Christian Weedbrook, chief executive of Xanadu Quantum Technologies.
Afternoon sessions
- 1:10 PM: Panel session on global capital featuring Larry Fink, chief executive BlackRock Inc. and Jon Gray, chief operating officer of Blackstone Inc.
- 1:50 PM: Panel session on defense and advanced manufacturing featuring Daniel Goldberg, chief executive of Telesat Corporation and Éric Martel, chief executive of Bombardier Inc.
- 2:25 PM: Panel session on growth equity in Canada featuring Dave McKay, chief executive of Royal Bank of Canada.
Evening sessions
- 4:00 PM: Panel session on financing Canada’s future from a global perspective featuring Christian Sewing, chief executive at Deutsche Bank AG and C.S. Venkatakrishnan, group chief executive at Barclays.
- 4:20 PM: Panel session on Canada’s energy sector featuring Rich Kruger, chief executive at Suncor Energy Inc. and François Poirier, chief executive at TC Energy Corporation.
- 5:55 PM: Closing remarks delivered by former prime minister Stephen Harper
–Serah Louis
TD, Scotiabank commit billions
Toronto-Dominion Bank and the Bank of Scotia have joined the other big Canadian banks in committing to deploy billions of dollars in the next five years into sectors critical for the Canadian economy.
TD has committed $150 billion with a focus on energy, critical minerals, defence, artificial intelligence and infrastructure.
“Canada is entering a defining period of investment and industrial growth that will shape the country’s economy for decades to come,” chief executive Raymond Chun said in a statement on Monday. “TD will connect investors with opportunity, help businesses scale and strengthen the sectors critical to Canada’s next era of growth.”
Scotiabank is committing $100 billion to similar sectors and is launching an institute to help policymakers, business leaders and markets decide what’s best for Canada’s competitiveness.
Carney says trade deal with U.S. still possible
In an interview with Bloomberg News at the Canada Investment Summit, Prime Minister Mark Carney said he is not going to slow down expanding trade with other nations, but that a deal with the United States is still possible.
Negotiations fell apart last month, with both sides pointing the finger when it comes to who’s to blame.
The U.S. has since upped tariffs on Canada to as much as 50 per cent and Canada has responded in kind with dollar-for-dollar tariffs of their own.
“We’ll sit down when it makes sense,” Carney said. “Canada and the U.S. have a very long relationship. We sometimes go through periods where there are tensions in that relationship. Provided we continue this approach, we’ll come to some agreement at some point.”
With files from Barbara Shecter, Naimul Karim and Bloomberg News