Tuesday, October 31, 2023

Young Canadians more anxious about debt, more likely to miss a bill payment: Equifax

Young Canadians are more anxious about their personal debt and more likely to have missed a bill payment this year, according to Equifax Canada.

"This has been an incredibly stressful time for Canadian households, just managing day-to-day expenses," said Julie Kuzmic, senior compliance officer of consumer advocacy at Equifax Canada. 

Younger adults "appear to be feeling the financial pinch more acutely than their older counterparts," the report said. 

In the survey, conducted in September, 36 per cent of younger adults reported having missed a bill payment this year, compared with 23 per cent overall.

Meanwhile, 52 per cent of those surveyed between the ages of 18 and 34 are anxious about their personal debt, compared with 39 per cent overall.

The credit reporting agency recently noted Canadians' credit card debt hit an all-time high in the second quarter, with lower-income households having a harder time reining in their spending. 

"It's no secret that credit card debt comes at a higher interest rate, and therefore can be more stressful to people who are forced to resort to credit cards in order to meet their daily requirements for living," said Kuzmic. 

"It certainly isn't a surprise to see that the anxiety level across Canadians around their personal finances is relatively high. And unfortunately, there is very much likely to be a link between that those higher balances we're seeing on credit cards and that anxiety that people are feeling."

Housing is a top concern for Canadians, Equifax Canada said, with three in 10 respondents saying they’ve had to seek additional income in order to cover higher mortgage or rent payments. 

She expects this anxiety will continue to rise, as many households have yet to renew their mortgages at significantly higher interest rates, with the Bank of Canada's overnight rate now sitting at five per cent.

Almost 20 per cent said they’re in a precarious financial situation and may need to move due to affordability issues. 

The survey found younger Canadians are more likely to look into second or third jobs or ‘side hustles’ in order to meet their financial obligations. 

"A number of people have agreed that higher mortgage or rental payments have forced them to find additional income," said Kuzmic. 

This report by The Canadian Press was first published Oct. 30, 2023.

CANADA

Mining industry leading the way in adoption of tech, AI: report

Mining companies are leading the way among Canadian businesses in adopting advanced technology such as artificial intelligence, according to a new economic research report.

The Vancouver Economic Commission’s quarterly report, published this month, included a section looking at adoption of advanced technology across industries in Canada.

The report cited data collected by Statistics Canada in 2022 which found that 30.9 per cent of mining businesses had adopted some advanced technologies -- the highest adoption rate of any industry.

At the time, half of the implemented technologies complied with regulatory standards including sustainability, according to the repot.

AI ADOPTION


Artificial intelligence (AI) was the main technology businesses chose to adopt, the report said, with about a third of businesses in natural resource extraction like mining and oil and gas applying the technology in some way.

“Almost one-third of surveyed businesses in mining, quarrying, and oil and gas extraction used AI technologies,” the report read.

“Commonly cited reasons were to develop new or improved processes or operations as well as for process flexibility and cost reduction.”

AI technology has also helped companies make what have historically been dangerous jobs much safer, with automation sometimes eliminating the need for humans to be present at a mining site.

Some Canadian mining companies have publicly discussed how they apply AI in their operations.

Saskatoon-based Nutrien Ltd. — which has been working to develop tele-remote technology at its network of six potash mines in Saskatchewan — successfully mined an entire production wing at its underground Lanigan, Sask., site last fall without a single human setting foot in the area. 

Using a combination of radar, cameras, advanced sensing systems and cutting-edge technologies powered by AI, Nutrien was able to operate one of its massive potash boring machines from a control room a few hundred metres away from the active mining face.

LABOUR SHORTAGES

In Metro Vancouver, the adoption of advanced technologies in the mining industry may also be a response to labour shortages.

The report found that the total number of workers in the mining, quarrying, and oil and gas extraction industries remain below pre-pandemic levels.

Across all industries, the report noted that many businesses have still chosen not to adopt advanced technologies, including AI, for several reasons including a perceived low return on investment or long payback period.

Other roadblocks include challenges in recruiting skilled staff and difficulty integrating new tech with existing systems.

With files from The Canadian Press

MONOPOLY CAPITALI$M

Swoop officially ends operations after WestJet merger

Swoop Airlines has officially ended its independent operations after its parent airline WestJet decided to fold operations under the same banner. 

In a tweet, the low-cost airline marked its final day of operations by thanking customers for their support over its five years in business. 

“As we merge with WestJet, we look forward to new adventures ahead,” Swoop wrote in the tweet. “Thanks to the loyal Swoop travellers for their support.”

Over the summer, WestJet announced Swoop would be ending operations in October after pilots for both airlines reached a deal to bring them to a level pay scale, which made operating a low-cost airline less feasible, the Canadian Press reported back in June.

The move is not resulting in any layoffs and the Swoop fleet will now be repainted with WestJet decals.

With files from The Canadian Press

 

Coastal GasLink is fully built in positive sign for LNG Canada

TC Energy Corp. has welded the last stretch of the Coastal GasLink pipeline into place, adding to signs that a huge facility to export liquefied natural gas off Canada’s west coast is on track to start up on time, or even early.

All of the pipes along the 670-kilometer (416-mile) route through northern British Columbia have been connected — with the so-called “golden weld” occurring on Oct. 7 — as well as coated, lowered into trenches and hydro tested, Calgary-based TC Energy said Monday. The next stage, called mechanical completion, involves additional documentation and engineering analysis before natural gas is introduced. 

The development may add to growing excitement in the Canadian energy industry about the speed of construction at the LNG export project that the pipeline feeds. LNG Canada — backed by Shell Plc, Mitsubishi Corp. and PetroChina Co., among others — has been billed as the single largest private sector investment in Canadian history and a way for the country’s gas producers to ship their output to new markets where they can garner higher prices. 

“Based on everything that we’re hearing and seeing, LNG Canada may start taking some test gas volumes by the middle of next year,” RBN Energy managing director Martin King said in an interview before the Coastal GasLink announcement. That would be earlier than the “middle of the decade” timeline LNG Canada has publicly provided, he said.

“There’s a palpable sense in the gas business that we’re going to actually have a real, viable outlet for Canadian gas exports other than the United States,” he said.

The optimism on LNG Canada’s completion contrasts with the lengthy delays faced by other major energy projects, such as the Trans Mountain oil pipeline expansion. Canada doesn’t currently have a major coastal LNG export facility, forcing it to send all of its excess gas south to the US, where prices are a fraction of what producers would garner in Asia. LNG Canada’s first phase is expected to chill and export enough gas to supply 20 million households in Japan for a year.

The LNG Canada group has dropped a number of clues about its progress. One job posting seeks a candidate who will move from the project site in Kitimat, British Columbia, to Calgary “after the LNG facility has achieved steady state operations” at the end of next year to mid-2025.  

“Everything we’ve heard is that everything is going smoothly,” said Jamie Heard, head of capital markets at Tourmaline Oil Corp., one of Canada’s largest natural gas producers.

LNG Canada spokesperson Brian Hutchinson said that the project is 85 per cent complete overall and that commissioning and startup activities will begin in 2024, though he said they will take a full year. He reiterated the consortium’s previous forecast of first cargoes shipping by the middle of the decade.

LNG Canada’s investors haven’t made a decision yet on a second phase of the project, which would add two more liquefaction units. 

Work on Coastal GasLink “made tremendous progress” through the summer, putting the project on track for mechanical completion prior to the end of the year, TC Energy spokesperson Suzanne Wilton said, adding that reclamation work will continue into 2024. 

The project is expected provide welcome relief for Canadian natural gas producers that have been so frustrated by a lack of LNG export infrastructure that they have launched a project of their own and also sent gas all the way to export facilities in Texas.

“It’ll be huge,” said Cameron Gingrich, managing partner at energy consulting firm Incorrys Inc. “There’s a lot of money that will go toward filling that pipeline and project.”

Liberal democracies struggle most with tech regulation: prof

Amid calls to regulate fast-developing technologies, a Columbia law professor and author says reigning in big tech has proven challenging for democracies.

“If you look at our economy, our society, our cultural life, our interactions, they are increasingly shaped by technology giants,” Columbia Law School Prof. Anu Bradford told BNN Bloomberg in a Friday television interview.

“At the same time, you see a growing need that is recognized by governments from all around the world that they need to be regulated, but there is no consensus on how we regulate these companies.”

Bradford is the author of Digital Empires: The Global Battle to Regulate Technology, which looks at those themes in detail.

She said liberal democracies have the hardest time regulating technology, citing polarization and dysfunction in the American government system and a lack of enforcement in the European Union.


Meanwhile, “authoritarian” countries like China don’t have the same challenges when it comes to tech regulation, according to Bradford.

“If they decide that it's time to crack down on big tech, they will crack down on big tech,” she said.

“We are really struggling to show that there is a liberal democratic model that is also effective when faced with the power of these tech giants.”

CANADA VS BIG TECH

The struggle between governments and big tech companies over regulation has been playing out in Canada with the development of the Online News Act.

It was signed into law in June and requires tech companies to compensate Canadian media organizations when creating and publishing news content on their platforms.

In response to the law, Meta has blocked news links for Canadian users and Google has threatened to do the same over what it sees as “flaws” in the legislation.

Bradford said that if there continues to be a lack of meaningful tech regulation from democratic governments, the global digital economy will remain under the control of either authoritarian regimes or big tech companies themselves.

“Neither is good for liberal democracy,” she added.

ARTIFICIAL INTELLIGENCE

Historically, governments have faced challenges when attempting to regulate new technology that the world isn’t yet familiar with, Bradford said – but she made the case that technological advances in artificial intelligence (AI) have been unlike any others.

“There's something distinct about AI,” she said. “It is fast-evolving, so it feels like you're regulating a moving target, and it is so multifaceted. There are so many different applications of AI.”

Bradford explained that governments setting rules for AI will be attempting regulate everything from the future of warfare to social media algorithms.

In Canada, the federal government recently unveiled a voluntary code of conduct for the responsible development of AI, aimed at mitigating the potential risks posed by the technology.

The code identifies a number of measures that companies are encouraged to apply to their operations when developing and managing AI systems.

While AI does present a number of serious risks, Bradford said there is also immense potential for beneficial applications of the technology, which regulators are also trying to keep in mind. 

“Regulators are struggling to make sure that we can harness this tremendous economic potential of AI, but at the same time that we protect our individuals and societies against some of the really grave risks that the technology presents,” she said.

Biden signs sweeping executive order regulating artificial intelligence

STATISM DEFENDS MONOPOLY CAPITALI$M

U.S. President Joe Biden signed an executive order on artificial intelligence that establishes standards for security and privacy protections and requires developers to safety-test new models — casting it as necessary regulation for the emerging technology.

“To realize the promise of AI and avoid the risk, we need to govern this technology,” Biden said at a White House event Monday, detailing his most significant action yet on a technology whose practical applications and public use have skyrocketed in recent months.

The order will have broad impacts on companies developing powerful AI tools that could threaten national security. Leading developers such as Microsoft Corp., Amazon.com Inc and Alphabet Inc.’s Google will need to submit test results on their new models to the government before releasing them to the public. 

Biden said the Commerce Department will also develop standards for watermarking AI-generated content, such as audio or images, often referred to as “deepfakes.”

“That way you can tell whether it’s real or it’s not,” Biden said, noting that “AI devices are being used to deceive people.”

Biden said he had watched deepfakes of himself speaking and marvelled at how realistic the images appeared, often asking himself, “When the hell did I say that?”

The rule aims to leverage the US government’s position as a top customer for big tech companies to vet technology with potential national or economic security risks and health and safety impacts. Bloomberg Government earlier reported on a draft of the order. 

The order will marshal federal agencies across government. Biden said he will direct the Department of Energy to ensure AI systems don’t pose chemical, biological or nuclear risks and the Departments of Defense and Homeland Security to develop cyber protections to make computers and critical infrastructure safer.

Congressional action

Biden said he would also meet Tuesday with Senate Majority Leader Chuck Schumer and lawmakers from both parties at the White House on artificial intelligence and passing legislation on privacy concerns. Biden has repeatedly pushed lawmakers to approve privacy protections.

Schumer has called for the US to spend at least $32 billion to boost AI research and development and said Monday that he hoped to have legislation setting standards for the technology ready in the coming months. 

Lawmakers have been holding briefings and meeting with tech representatives, including Meta Platforms Inc.’s Mark Zuckerberg and OpenAI’s Sam Altman, to better understand the technology before drafting legislation. Venture capitalists Marc Andreessen and John Doerr have also participated in the closed-door sessions. 

Monday’s action builds on voluntary commitments to securely deploy AI adopted by more than a dozen companies over the summer at the White House’s request and its blueprint for an “AI Bill of Rights,” a guide for safe development and use. 

“This executive order sends a critical message: that AI used by the United States government will be responsible AI,” IBM Corp. Chairman and Chief Executive Officer Arvind Krishna said in a statement. IBM Vice Chairman Gary Cohn, former President Donald Trump’s National Economic Council director, attended Monday’s event.

Microsoft views the order as “another critical step forward in the governance of AI technology,” Vice Chairman and President Brad Smith said in a statement.

Biden’s directive precedes a trip by Vice President Kamala Harris and industry leaders to a UK-hosted summit about AI risks, giving Harris a US plan to present on the world stage. 

“Technology with global impact requires global action,” Harris said Monday. “We will work with our allies and our partners to apply existing international rules and norms with a purpose to promote global order and stability.”

The U.S. set aside US$1.6 billion in fiscal 2023 for AI, a number that’s expected to increase as the military releases more detail about its spending, according to Bloomberg Government data.

Algorithmic bias

Biden has repeatedly called for guidance to be issued that safeguards Americans from algorithmic bias in housing, government benefits programs and by federal contractors. 

The Justice Department warned in a January filing that companies that sell algorithms to screen potential tenants are liable under the Fair Housing Act if they discriminate against Black applicants. Biden directed the department to establish best practices for investigating and prosecuting such civil-rights violations related to AI, including in the criminal justice system. 

The order also asks immigration officials to lessen visa requirements for overseas talent seeking to work at American AI companies. 

With assistance from Jordan Fabian, Amanda Allen and Jenny Leonard.

CANADA

Feds ban WeChat, Kaspersky apps from government-issued devices over security concerns

The federal government is banning WeChat and Kaspersky applications from its phones over security concerns.

WeChat is a social network, messaging and payments app from Chinese company Tencent, while Kaspersky was founded by Russian entrepreneur Eugene Kaspersky and offers cybersecurity and antivirus software.

The government said both apps would be removed from its devices Monday and users will be blocked from downloading WeChat or Kaspersky products in the future.

It said it made the move because the chief information officer of Canada determined that the WeChat and Kaspersky apps present "an unacceptable level of risk to privacy and security."

Kaspersky, in a statement, said it was disappointed and surprised by the decision, claiming it was made without "opportunity for engagement by Kaspersky on the Canadian government’s underlying concerns."


The statement suggested the move seemed to have been "made on political grounds."

"As there has been no evidence or due process to otherwise justify these actions, they are highly unsupported and a response to the geopolitical climate rather than a comprehensive evaluation of the integrity of Kaspersky’s products and services," the company's statement said.

The government's chief information officer said the apps' data collection methods provide considerable access to the contents of any mobile device they're on and the government wanted to ensure their networks and data remain secure.

It said it has no evidence that information has been compromised as a result of employees using the apps.

The statement from Kaspersky noted its data services and engineering practices have been confirmed by independent third-party assessments.

"Kaspersky provides industry-leading products and services to customers around the world to protect them from all types of cyberthreats, and it has stated clearly that it doesn’t have any ties with any government, including Russia’s."

This report by The Canadian Press was first published Oct. 30, 2023.

Telus partners with electric vehicle chargers producer Flo to provide real-time data

Telus Corp. is partnering with electric vehicle charging network operator Flo to help improve reliability as adoption of clean vehicle technology is expected to ramp up.

The Vancouver-based telecommunications company says Flo will use its internet of things connectivity platform to provide real-time visibility on at least 60,000 chargers in Canada and the U.S. over the next five years.

That will allow Flo to monitor public and commercial charging stations, using data it receives to conduct diagnostics remotely and provide support when the products aren't working as they're supposed to.


Flo says its charger network is functional about 98 per cent of the time, while Telus says its network is 99.99 per cent reliable.

Telus vice-president of commercial sales for Quebec and Atlantic Ali Barakat says that with all light-duty vehicles sold in Canada required to be zero-emission by 2035, the company is aiming to support the development of critical infrastructure.

Earlier this year, Telus announced a partnership with Australian electric vehicle charging company Jolt to install up to 5,000 public fast chargers across Canada, running on the company's network.

This report by The Canadian Press was first published Oct. 31, 2023.

CEO of massive rail project says hurdles abound — and express trains may be solution

From his offices on the 34th floor of 1 Place Ville Marie, Martin Imbleau has a nearly panoramic view of Montreal.

Clearly in view are Central Station and Victoria Bridge, which are both essential to passenger and freight traffic through the city.

Less evident is the route to be traced by Via Rail’s planned high-frequency rail (HFR) line from Toronto to Quebec City, a project headed by Imbleau to build a new set of dedicated tracks slated for completion in the mid-2030s.

Simply entering and exiting big cities quickly will be one of the thorniest challenges, Imbleau said.

“If you go to the Gare Centrale or Union Station or even the Gare du Palais in Quebec (City), you realize that on the last segment to reach those train stations the trains go fairly slowly. So it really affects your journey time,” Imbleau, CEO of Via HFR Inc. — an arm’s-length subsidiary of the passenger rail Crown corporation — said in an interview.

“One of the constraints is to get in and get out of the cities in a faster way.”

The existing tracks in and around the Greater Toronto Area are largely owned by regional transport authority Metrolinx and Canadian National Railway Co., with little room for more lines in a dense downtown.

In Quebec, the planned route from its capital along the north shore of the St. Lawrence River to Montreal would likely mean entering that city from the north. This raises the question of whether a new tunnel through Mount Royal would be created — the Caisse de dépôt et placement du Québec’s infrastructure arm has ruled out a second set of tracks through the existing tunnel, where the REM commuter line runs — to reach the heart of the city.

"It's not about frequency only. It's about being fast. It's about being reliable," Imbleau said.

While stops in Peterborough, Ont., Ottawa and Trois Rivières, Que. are mandated, there could be express trains that whiz through those cities without stopping, he said — as well as trains that do serve those communities.

“Imagine being able to (do) Peterborough-Toronto or Trois Rivières-Quebec in around an hour and 15 minutes. That changes completely how you commute between a region and a city,” Imbleau said.

The three consortiums selected to submit proposals for the roughly 1,000-kilometre line must each present two options: one allowing for speeds of up to 200 km/h, and another that can go even faster during high-speed legs of the journey.

Imbleau noted that the average speed of some trains deemed high-speed in Europe, such as France's 600-kilometre Paris-Montpellier route, notch below 200 km/h and takes well over three hours.

“One of the targets is three and a half hours, so it's pretty fast," he said, referring to the Toronto-Montreal route, which would cover roughly the same distance by way of Ottawa.

The second speed option would likely increase the project’s price tag. It was pegged at between $6 billion and $12 billion by former transport minister Omar Alghabra when it launched in 2021. Authorities have since shied away from estimates, however.

“For sure I’d be completely wrong,” said Imbleau, stating it wouldn’t be prudent to discuss numbers until the proposals land.

High-speed rail lines demand full-grade separation at road crossings, potentially requiring hundreds of millions of dollars for construction of dozens of overpasses and underpasses. In rural areas, this also requires drainage pumps, which in turn can require generators, piling onto maintenance costs.

Typically, some crossings are simply removed to save costs, aggravating local residents who may have to travel several more kilometres to traverse the tracks.

A Toronto-Montreal train that takes roughly four hours — the alternative target — would still lure many more riders and make it more financially self-supporting than Via Rail’s current route, which takes five hours between Toronto and Montreal and tolerates speeds no higher than 160 km/h. It runs on tracks owned mainly by CN, whose slower freight trains have priority, preventing more frequent trips.

Via enjoyed a subsidy of $70 per passenger on its Montreal-Ottawa-Toronto route last year, and $1,029 per passenger on its Canadian line between Vancouver and Toronto — all drawn from $672.5 million in government funding.

“One of the goals of the project is to reduce the subsidy being given to operate the service. It's to be as self-sufficient as possible,” Imbleau said.

He projected that the corridor would host 17 million riders per year by mid-century. Last year Via Rail’s eastern corridor, which includes Toronto, Ottawa, Montreal and Quebec City, furnished 2.48 million passengers, or three-quarters of its network-wide ridership.

However, the timeline for the zippy trains has already been slightly delayed, even before the proposals arrive. Initially planned for the early-2030s, Alghabra pinpointed the mid-2030s in July. The deadline for proposals was initially mid-July, but has now been pushed back to next fall, Via HFR said.

As for the speed of the trip itself, Pierre Barrieau, who teaches transportation and urban planning at the Université de Montreal, said steering clear of downtown Toronto and Montreal makes sense. Instead, a promising option is to drop riders at a suburban or midtown station that links up with a local or regional line.

"It’s just too expensive bringing the trains downtown,” he said. “That’s where you’re also going to be wasting incredible amounts of time.”

This report by The Canadian Press was first published Oct. 31, 2023.

BHP pushes ahead with giant fertilizer mine expansion in Canada

RECESSION WHAT RECESSION

BHP Group approved an accelerated expansion of its giant potash project in Canada, as fertilizer markets remain buoyed by expectation of tight supplies and as the mining giant seeks to become less dependent on polluting fossil fuels.

The world’s biggest miner, which is entering production of the crop nutrient to add exposure to population growth, has been searching for ways to speed up the Jansen project for more than a year as the long-term outlook for fertilizer prices improves. 

The company said Tuesday that it was now going ahead with its so-called stage two expansion, even before the first phase of the mine is in production. BHP, which had already committed more than US$10 billion to the project, said the second stage would cost another $4.9 billion.

Fertilizer prices surged after Russia’s invasion of Ukraine as soaring natural gas prices — a crucial feedstock — raised costs. Sanctions on Belarusian potash and moves by China to rein in shipments also tightened the market. While prices have come off their highs, companies like BHP expect the market to remain tight.

BHP finally approved construction of the Jansen mine in Saskatchewan in 2021 after years of debate over the huge price tag. Jansen could operate for a century, and eventually grow to a scale that would rival the size of the company’s flagship Pilbara iron ore operations, BHP has said. 

Jansen is expected to start production in 2026, producing just over four million tons a year. The phase two expansion will see that double to around 8.5 million tons a year, making it one of the world’s biggest fertilizer mines.

Cameco shares up after reporting Q3 profit and raising revenue outlook for 2023

RECESSION WHAT RECESSION

Shares in Cameco Corp. rose nearly 10 per cent after it raised its revenue outlook for 2023 and reported a profit of $148 million in its latest quarter compared with a loss a year ago.

The uranium miner says the profit amounted to 34 cents per diluted share for the quarter ended Sept. 30 compared with a loss of $20 million or five cents per diluted share a year earlier.

Revenue for the quarter totalled $575 million, up from $389 million in the same quarter last year.

On an adjusted basis, Cameco says it earned 32 cents per diluted share, up from an adjusted profit of three cents per diluted share a year earlier.

In its updated outlook, Cameco says it now expects consolidated revenue between $2.43 billion and $2.58 billion for 2023, up from its earlier expectations for between $2.38 billion and $2.53 billion, primarily driven by higher expected average realized prices under its contract portfolio. 

Cameco shares were up $4.85 at $57.21 in early Tuesday trading on the Toronto Stock Exchange.

This report by The Canadian Press was first published Oct. 31, 2023.