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In today's Globe and Mail, a couple of articles point reassuringly at the economic growth in Asia, in particular, emerging Asia,Ā and how that is fuelling commodity demand, today's featured commodity being coal, and how that is expected to continue to drive M&A activity. It is however, the resultant investment opportunity Canadians have in our own backyard that keeps resonating. We are asleep at the wheel, while foreigners bid for ownership of what should remain Canadian-domiciled for the sake of the Canadian economy's long-term eminence.
Our corporate landscape is a multicultural, multi-national tapestry of ownership that is led by companies from countries whose protectionist barriers are high, including the U.S. Other than the most obvious reason being, that they are sources of capital, why do we make it so easy for large Indian and Chinese (and American) companies to bid and takeover our natural resources by proxy of mergers and acquisitions? Are we that short sighted that we can't see that we should be funding these same companies from homegrown sources. Are Canadians still too timid to take those risks?
We have highlighted in the past that Canadian investors for the most part are behind the proverbial eight ball, while foreign investors, Americans included, have been swallowing up once-Canadian domiciled interests in businesses and natural resources. On one hand, its evident that our companies need foreign capital to expand operations, but how is it advantageous to us in the long term, to give so much of what makes Canada great in order to get there.
As Asia Rolls on, a New World Order Emerges, Globe and Mail, April 15, 2010
Kevin Carmichael
Asia's economy is no longer hot, it's scorching, a shift that will force policy makers in the region to be more aggressive in efforts to contain inflation.
Singapore's monetary authority increased the value of the island nation's currency yesterday after a government report showed gross domestic product expanded at a gravity-defying annual pace of 32.1 per cent in the first quarter, the fastest recorded rate dating back to 1975.
...China also reported evidence of inflation, saying residential and commercial real estate prices in 70 cities jumped 11.7 per cent in March from a year earlier, a record increase that economists said will force President Hu Jintao's government to take further steps to constrain its housing market or risk a bubble.
China's economic growth surges in 1st quarter
Analysts say strong performance might allow a loosening of politically volatile currency controls
China's economic growth surged to 11.9 per cent in the first quarter, possibly giving Beijing room to allow its currency to rise, but analysts warned it faces growing pressure to cut back stimulus and keep the world's third-largest economy from overheating.
Chinaās move on oil sands is about more than money, Globe and Mail, Campbell Clark, April 14, 2010
This is a test. Chinese oil company Sinopecās move to buy a piece of Alberta oil sands producer Syncrude is the latest move in Beijingās step-by-step gauging of the investment waters in Canada.
China is watching to see if the deal sets off alarm bells in Canada, particularly in Prime Minister Stephen Harperās Conservative caucus.
King Coal rides Wave of Asian Demand (only in print as of now), April 15, 2o1o, Brenda Bouw, Mining Reporter, G&M
Asia's hunger for coal to make steel and provide electicity is creating a global shortage that is driving up prices and spurring a new wave of consolidation as companies try to secure supply and take advantage of rising margins for the coveted commodity.
The renewed coal craze is highlighted by the ongoing takeover battle for Australia's MacArthur Coal Ltd., the world's top exporter of pulverised coal, a cheaper and cleaner-burning type of metallurgical coal used in steel production.
Its time we took a long-termĀ domestic stance alongside foreign investors, whose need seems greater than ours for what we take for granted; Canada's natural resources.
