Federal bank loaning $1B for BC Ferries to buy Chinese-made ships
VICTORIA - A federal Crown corporation is loaning BC Ferries $1 billion to help buy four Chinese-made ferries, a purchase that federal transport minister Chrystia Freeland recently said was dismaying and should involve no federal funds.
Canada Infrastructure Bank confirmed the loan on Thursday, saying the new electric ferries 'wouldn't likely be purchased' without the financing.
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Winnipeg Free Press
2 hours ago
- Winnipeg Free Press
Chinese factory activity improves slightly with delay on tariffs, but still lags
BANGKOK (AP) — Chinese factory activity improved somewhat in June after President Donald Trump agreed to delay imposing higher tariffs on imports from China for 90 days, but overall activity was still contracting, according to a survey released Monday. The purchasing managers index, which reflects new orders and other measures, rose to 49.7 from 49.5 in May, the National Bureau of Statistics reported. That's on a scale of 0 to 100 where 50 and above shows expansion. Other reports showed similar trends in Japan and Korea. Trump has said he's not planning to extend the 90-day pause on tariffs on most nations beyond July 9. The delay for imposing much higher tariffs on China, agreed to in early May, expires about a month later. The hiatus for tariffs brought a revival of manufacturing activity as companies and individuals rushed to take advantage of lower import duties. But that mainly helped large manufacturers, with small and mid-size companies' output still contracting. Hiring also fell. New export orders and exports also remained below the 50-level that marks expansion. In Japan, manufacturing output edged 0.5% higher in May, well below analysts' estimates for a 3.5% increase. 'The subdued rise in industrial production in May means that firms were not benefitting from sky-high U.S. tariffs on Chinese imports, and their production forecasts point to continued weakness,' Marcel Thieliant of Capital Economics said in a report. South Korea's government reported that its 'all industry' measure of output fell 2.9% from a year earlier in May, with production of computer chips falling 2%. Production of vehicles fell 2.3% year-on-year, after falling 4.1% in April. Monday Mornings The latest local business news and a lookahead to the coming week. In an interview with Fox News Channel's 'Sunday Morning Futures,' Trump said he's not planning to extend a 90-day pause on tariffs on most nations beyond July 9. The delay for imposing much higher tariffs on China, agreed to in early May, expires about a month later. Trump said his administration will notify countries that the trade penalties will take effect unless there are deals with the United States. He had played down the deadline at a White House news conference Friday by noting how difficult it would be to work out separate deals with each nation. The administration had set a goal of reaching 90 trade deals in 90 days. Despite a recent trade deal with Beijing over rare earth exports from China, establishing a fairer relationship will require significant tariffs. Details of the latest agreement to deescalate trade tensions are scarce and major issues between the world's two biggest economies remain unresolved. 'I think getting along well with China is a very good thing,' Trump said. 'China's going to be paying a lot of tariffs, but we have a big (trade) deficit, they understand that.'
Winnipeg Free Press
3 hours ago
- Winnipeg Free Press
China lifts a nearly 2-year ban on seafood from Japan over Fukushima wastewater
BEIJING (AP) — China has reopened its market to seafood from Japan after a nearly two-year ban over the discharge of slightly radioactive wastewater from the tsunami-destroyed Fukushima nuclear power plant. A notice from the customs agency said the ban had been lifted Sunday and that imports from most of Japan would be resumed. The ban, imposed in August 2023, was a major blow to Japan's fisheries industry. China was the biggest overseas market for Japanese seafood, accounting for more than one-fifth of its exports. The nuclear plant at Fukushima was heavily damaged by a deadly tsunami that followed a huge offshore earthquake in 2011. Water still must be pumped in to cool the radioactive fuel. The water is then stored in what was an ever-growing complex of tanks on the property. After years of debate, the utility won government permission to discharge the water gradually into the sea after treating it to remove most of the radioactive elements. Japanese officials said the wastewater would be safer than international standards and have negligible environmental impact. China disagreed and imposed a ban, saying the discharge would endanger the fishing industry and coastal communities on its east coast. The ban will remain in place for seafood from 10 of Japan's 47 prefectures, including Fukushima and nearby ones. Japanese seafood exporters will have to reapply for registration in China and all imports will have to include a health certificate, a certificate of compliance for radioactive substance testing and a certificate of origin, the Chinese customs agency said.
Global News
2 days ago
- Global News
B.C. billionaire's plan to take over Bay leases facing legal battle
A group of Hudson's Bay's landlords don't want to transfer more than two dozen leases to British Columbia billionaire Ruby Liu, but the department store still has a chance to get its way. The Bay, which filed for creditor protection in March, ran a process over the last several months to find buyers for leases belonging to it and Saks Canada. It agreed to sell up to 28 spaces to Liu. Three leases were transferred to her without any hiccups because they're in B.C. malls she owns, but another 25 are at properties held by a who's who of Canadian commercial real estate firms. 2:00 What will Montreal do with the vacant Hudson's Bay building? Landlords for 23 of those sites oppose the transfer. Several have said in court they've been 'very troubled' with their interactions with Liu and have had 'no productive discussions, no meaningful disclosure.' Liu insists if the court hands her the leases, landlords will warm to her and her plan to open a new department store in their properties. Story continues below advertisement While the disagreement could serve as a roadblock to the Bay closing on its agreement with Liu, lawyers not involved in the case say the retailer has another route it can take to get a deal done. That route lies in changes to the Companies' Creditors Arrangement Act — Canada's main insolvency law — made in 2009, said Jeff Lee, a Saskatoon-based partner at MLT Aikins LLP. The changes laid out three criteria courts must consider when asked to assign leases to a new tenant. The first is whether or not the sale has the support of the monitor, a court-appointed, independent third party which helps guide businesses through creditor protection. In the Bay's case, the monitor is Alvarez & Marsal. It has yet to reveal whether it supports the Liu deal and did not respond to requests for comment. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'Before any court application is brought forward, typically the company will test that out with them,' Lee said. 'They're not going to just sort of fly in blind and hope for the best.' The second aspect for the court to mull is whether the proposed new tenant is suitable. Lee said that's determined by looking at whether they can perform the duties of the tenant and pay rent. Liu, who made her money in Chinese real estate, appears to have deep pockets, but her experience comes from being a landlord rather than a tenant. Story continues below advertisement 1:47 Nostalgic Vancouver shoppers flock to 'The Bay' on its final day The final aspect the court will consider is whether a transfer of a lease to Liu is 'appropriate.' Lee said people should think of it as asking this question: 'Is what's proposed for this post-assignment lease relationship what people signed up for, or are they seeking to rewrite the lease or change the playing field so radically that it's not appropriate?' That's where much of the tension could lie in the Bay case. 'You can't go into CCAA as a tenant and then force your landlords to renegotiate their leases as a result,' said Peter Tolensky, a Vancouver-based partner at Lawson Lundell LLP. The Canadian Press obtained a document last week that Liu's lawyer sent landlords outlining her plans. It says she will take on the leases on an 'as is, where is' basis but doesn't mention the dining, entertainment, children's and fitness experiences she's told media she'd like to include in her department stores. Story continues below advertisement It's unclear whether the leases allow for uses other than a Bay-like department store. A court faced with a request to reassign leases will weigh this context and think about whether 'the landlord's world is being turned upside down by having this new tenant,' said Geoffrey Dabbs, a B.C.-based founding partner at Gehlen Dabbs Cash. 'The more it's a minor inconvenience for the landlord, the more likely the judge will order it,' he said. While the Bay hasn't said whether it will seek an assignment, it's likely because any company in creditor protection has a duty to show the court it's doing its best to pay back companies and people it owes money to, Dabbs said. The Bay has a 26-page list of creditors, with some lenders owed more than $100 million each. 2:08 Hudson's Bay last day Liquidation sales and a deal to sell the Bay trademarks to Canadian Tire for $30 million have put a dent in what's owed but selling leases to Liu would also help. Story continues below advertisement Anyone who made an offer for leases had to make a deposit of 10 per cent of their estimated purchase price. Court documents show Liu made a deposit of $9.4 million, in addition to $6 million for the three approved leases, which would equate to a purchase price of $100 million for 28 leases. When a deal like this is reached, Dabbs said a company typically seeks landlord consent because commercial leases tend to have provisions stopping anyone from transferring a lease without a property owner agreeing. It's not uncommon for landlords to object because any leases that can't be sold and aren't assigned get turned back over to property owners who can choose how to fill them and under what terms. 'Remember, these are anchor leases, so they're probably very favourable to the Bay or to the tenant in a lot of respects,' said Tolensky, alluding to the fact that anchor tenants are often given attractive rents or terms. Thus, it's more advantageous for landlords to get their properties back, said Monica Beffa, founder of an Oakville, Ont., law firm. If they do, they can then charge higher rents, develop them for entirely new uses such as residential units or break them up into smaller parcels that can be rented by a wide array of tenants. If they don't and a court assigns the leases to Liu, landlords will likely be watching her closely to ensure she doesn't violate any terms of the agreement. Story continues below advertisement 'The landlord may be cranky, if the tenant breaches, but put it this way, they don't want to rely on that,' Dabbs said. 'If they don't want this lease being assigned, they will fight it right up front.'
