Canada on the cusp of investment surge, NBF’s Marion says

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeInvestorNewsCanada on the cusp of investment surge, NBF’s Marion saysForeign investors have already poured record amounts into Canadian government bonds as federal issuance has ramped upAuthor of the article:Last updated 59 minutes ago Stefane Marion sees the lack of investment in recent years as having worsened regional divides in Canada, and he’s hopeful that Carney’s recent actions will keep separatism at bay. Photo by Tiffany Hagler-Geard/Bloomberg via Getty ImagesNational Bank Financial’s chief economist sees Canada starting to take business investment seriously after a decade of what he calls “stagnant” growth, and is forecasting a surge in foreign capital.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountStéfane Marion — who even donned a baseball cap with a logo that stands for “Make Canada Investable Again” at one point — spoke at the Bloomberg Canadian Finance Conference on Tuesday in New York.This advertisement has not loaded yet, but your article continues below.Marion was sanguine about the country’s growth prospects, even amid slowing population growth and an escalating trade war with the United States.Canada's best source for investing news, analysis and insight.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try again“I’m the most optimistic I’ve been on growth prospects in over a decade because I think we’re writing a new chapter on business investment,” he said.Marion said Prime Minister Mark Carney’s government’s plans to develop major projects, reduce regulations, cut taxes and boost competition are a major reassurance after a decade of sluggish business investment.“We can now exploit our comparative advantages,” Marion said, pointing to the country’s relatively inexpensive natural resources, including natural gas and electricity. Amid the artificial intelligence boom, that makes Canada an attractive trade partner, which can also help contain costs in other countries.Marion also sees an eventual resolution of the trade tensions with the U.S., saying the trading relationship between the two countries isn’t “going away anytime soon.”“We’re part of the solution to allow the U.S. to enjoy lower inflation if we work in partnership with them.”This advertisement has not loaded yet, but your article continues below.Foreign investors have already poured record amounts into Canadian government bonds as federal issuance has ramped up. But Marion says the bigger prize is attracting long-term capital directly into businesses and projects.“The holy grail of capturing durable investment in the country is foreign direct investment. And we haven’t done so well on that front over the past decade,” he said.Carney recently hosted the world’s biggest money managers in Toronto for the inaugural Canada Investment Summit, and soon after he unveiled marquee economic legislation to shorten federal permitting times to one year and curb the risk of labour disputes.Marion also sees the lack of investment in recent years as having worsened regional divides in Canada, and he’s hopeful that Carney’s recent actions — including supporting a new Alberta oil pipeline and expanding Quebec’s electricity capacity — will keep separatism at bay.“I think the referendum fears right now are just resentment for the past 10 years,” Marion said. “Ottawa got the message recently and by deploying these new policies, there’ll be a lot less frustration,” he said.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.The Bank of Canada next sets rates Oct. 28, and the current key policy rate is 2.25 per cent. Traders in overnight swaps put the odds of a hike at about a coinflip for next month’s meeting, but are pricing 100 basis points of hikes by June.Marion expects the central bank to raise rates next year, largely because of the fiscal push and a potential resolution of trade tensions with the U.S. He said the Canadian investment boom could create a different problem for monetary policymakers: stronger demand and inflation pressures.“The key reason why I see the Bank of Canada raising rates next year is not so much about the second round effects of the energy prices or the energy shock,” he said. “It’s more about the deployment of fiscal policy that might be more inflationary than previously assumed.”We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. 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