House Speaker John Boehner , also speaking in the Capitol this morning, said Reid and President Barack Obama should negotiate. Obama has scheduled a press conference at 2 p.m. in Washington . The U.S. government has been partially shut down since Oct. 1 and could default on its debt if lawmakers fail to reach an agreement to raise the borrowing limit by Oct. 17. Devastate Markets Economists say failure by the worlds largest borrower to pay its debt will devastate stock markets from Brazil to Zurich and throw the U.S. and world economies into a recession that probably would become a depression. U.S. equities retreated 0.8 percent, pushing the S&P 500s two-day decline to the biggest in two months. Eight of 10 groups in the Canadian benchmark equity gauge dropped, led by a 2.3 percent decline among health-care stocks.
Canada blocks network sale to Egypt’s Sawiris, citing security – Reuters
Consumers and a housing boom have provided most of the muscle in Canada’s economic growth since the 2008-09 recession but policymakers see that as unsustainable and are watching for signs the private sector is taking the lead through greater exports and investment. A silver lining in Tuesday’s trade report was that in volume terms exports and imports rose by 1.5 percent and 1.7 percent, respectively, which will help the monthly gross domestic product figures. But economists said the weak export performance could shave one percentage point off annualized growth in the third quarter. Scotiabank economists Derek Holt and Dov Zigler said exports were down 4.4 percent on a seasonally adjusted annual rate in the first two months of the quarter while imports gained 2.7 percent. “We have to see how September shapes up, but thus far, trade is looking to be a considerable drag on growth,” they said in a note to clients. The Bank of Canada sharply cut its third-quarter growth forecast in a speech on Oct. 1. Senior Deputy Governor Tiff Macklem said annualized growth in the third and fourth quarters would be in the 2 to 2.5 percent range. In its July forecasts, the bank had predicted 3.8 percent and 2.5 percent growth in the third and fourth quarters. Imports in August hit C$41.08 billion on higher shipments of energy products, aircraft and motor vehicles as volumes rose 1.2 percent and prices increased by 0.9 percent. The previous high was the C$40.89 billion recorded in April 2013. Exports advanced on higher shipments of energy products and mineral products. Volumes grew by 1.4 percent and prices edged up by 0.4 percent. Exports to the United States, which comprised 75.7 percent of all Canadian exports in August, grew by 1.9 percent while imports rose by a mere 0.1 percent.
Air Canada Adds Montreal-Barcelona and Montreal-Nice non-stop flights for Summer 2014 Schedule
Manitoba Telecom Services Inc (MTS) had announced in May it would sell its Allstream fiber optic network for C$520 million to Accelero Capital Holdings, which is controlled by the Egyptian telecom magnate. But MTS said late on Monday the federal government blocked the deal, citing unspecified national security concerns. The government also rejected MTS and Acceleros offer to take necessary actions to address those concerns, the company said in a statement on Monday. Canadian Industry Minister James Moore confirmed in a brief statement that the deal was blocked under the national security provisions of the Investment Canada Act. The statement did not provide any specific details on the governments concerns, but it noted that MTS Allstream operates a national fiber optic network that provides critical telecom services to businesses and governments, including the Canadian government. The government declined to comment further. TAKEOVERS RARELY BLOCKED Canada has rarely used its veto power to block a foreign acquisition of a Canadian asset under the Investment Canada Act. The legislation gives the government wide-ranging powers to review whether such deals are of net benefit to the country and whether they pose a threat to national security. In 2010 it blocked mining giant BHP Billitons $39 billion bid for the worlds top fertilizer company Potash Corp, stating that the deal was not of net benefit to Canada. This followed a 2008 decision to block MacDonald Dettwilers attempt to sell its satellite division to Alliant Techsystems Inc, due to national security concerns. The rejection of the Allstream deal comes as struggling smartphone maker BlackBerry Ltd, one of Canadas best- known technology companies, is in talks with foreign players including Cisco Systems, Google Inc and SAP about selling them all or parts of itself, sources have told Reuters. Accelero said in a statement it was very disappointed by the Canadian governments unexpected rejection of its proposed acquisition of Allstream.
UPDATE 2-Canada August trade deficit widens, hitting Q3 growth
Seats on these new Air Canada and Air Canada rouge flights are now available for purchase at aircanada.com and through travel agents. As new Boeing 777-300ER and 787 aircraft enter the Air Canada mainline fleet, Air Canada will continue growing Air Canada rouge to reach a total of up to 50 aircraft, as demand warrants. The growth of its leisure carrier, in tandem with the mainline fleet renewal and international network expansion, is a key element of Air Canada’s overall strategy for sustainable, profitable growth, both at the mainline and leisure carrier. “The expansion of Air Canada’s global network to include new European destinations is a significant turning point in Air Canada’s international growth strategy. With the addition of Air Canada rouge service from Montreal to popular holiday destinations such as Nice and Barcelona , we are offering customers great new options when making their travel plans beginning next summer,” said Ben Smith , Executive Vice President and Chief Commercial Officer. “The growth of Air Canada’s international network,within forecasts previously announced,is possible due to our ability to deploy capacity and continue growing at significantly lower incremental cost. Air Canada rouge’s successful inaugural season underscores its growing popularity among vacation- goers. Similarly, the introduction of our new international Premium Economy cabin has also met with extremely positive customer feedback and we are pleased to continue its introduction with our five specially-configured Boeing 777-300ER aircraft on routes such Montreal – London where market demand calls for a larger supply of Economy and Premium Economy seats, in addition to continuing to offer Executive First business class service. “As Canada’s preferred airline by business travellers, and voted Best Airline in North America for the fourth consecutive year, we are pleased to offer a wide range of premium products as well as high value options together with Air Canada rouge. We will continue leveraging Air Canada’s strengths in fleet, product and network while responding to demand on both a price and cost competitive basis to serve customers across Canada and around the world,” concluded Mr. Smith. Said James Cherry , president and CEO “Aeroports de Montreal is pleased with these new non-stop services and increased capacity on existing destinations as it reinforces Montreal-Trudeau’s appeal as an efficient hub to Europe .” Air Canada will have taken delivery of five new Boeing 777-300ER aircraft for the mainline fleet between June 2013 and February 2014 , and the first three of 37 Boeing 787 aircraft by the summer of 2014. Air Canada is scheduled to take delivery of six 787-8 aircraft in 2014 and the remaining 31 787-8 and -9 aircraft between 2015 and 2019. Highlights of the Air Canada mainline Montreal Summer 2014 flight schedule: Montreal-London Heathrow Aircraft upgauged from Airbus A330-300 to Boeing 777-300ER service featuring new international Premium Economy cabin, in addition to Executive First and expanded Economy cabins, from June 15 – September 30, 2014 . Montreal- Brussels Aircraft upgauged from Boeing 767-300ER to Airbus A330-300 service featuring choice of Air Canada Executive First and Economy cabins, from March 29 – October 25, 2014 . Montreal- Geneva Aircraft upgauged from Boeing 767-300ER to Airbus A330-300 service year-round featuring choice of Air Canada Executive First and Economy cabins. Montreal- Frankfurt Addition of a second non-stop flight five times weekly from May 16 – October 12, 2014. The Air Canada codeshare flight will be operated by Star Alliance partner, Lufthansa, and will complement Air Canada’s daily Airbus A330-300 year-round non-stop service, Highlights of the Air Canada rouge Montreal Summer 2014 flight schedule: Montreal- Nice New three times weekly service from June 5 to October13, 2014, subject to government approval.