AGF Management : A Smooth Start — Except With Canada

Insights and Market Perspectives

Author: 8

January 21, 2021

A Smooth Start - Except for Canada
January 21, 2021
IT WAS A REMARKABLY SMOOTH Inauguration Day: No violence, no snags, a well-delivered speech. Calls for unity were aspirational, of course, but there was a clear sense that the temperature will be lowered.

ONLY ONE SURPRISE FROM JOE BIDEN: It may take a while to get used to the new president's style - he telegraphs action and usually doesn't blind-side anyone; he issued executive orders last night that were largely expected. But the timing of one raised eyebrows.

THE NEW ADMINISTRATION HAS ITS FIRST CONTROVERSY - with Canada, of all countries, over oil pipelines. There's disappointment in Ottawa and energy-centric Alberta that the Keystone Pipeline has been killed by the U.S. without any discussions - or, apparently, without a heads-up.

IN A CLEAR ATTEMPT TO SMOOTH RUFFLED FEATHERS, Biden's first phone call as president to a foreign leader will be on Friday with Justin Trudeau. The Canadian Prime Minister, who is considering a snap election this year, now faces an uproar in Alberta, where Premier Jason Kenney blasted the U.S. move; his government has an equity stake in the Keystone project.

THE PIPELINE WOULD HAVE TRANSPORTED about 800,000 barrels a day of oil from Alberta to Nebraska to the Gulf Coast. It has been fiercely opposed by U.S. environmental activists and - several years ago - the Obama Administration, which led to a chill between the two countries. Donald Trump never had much chemistry with Trudeau, but at least they agreed on the pipeline.

TRUDEAU, WHO SUPPORTS THE PIPELINE, discussed it with Biden a few days after the U.S. election, and there may have been an understanding to discuss it further in early 2021. But Biden decided to act quickly this week; Trudeau called the U.S. move 'disappointing.'

AND THERE'S ANOTHER CONTROVERSY - over the Line 5 pipeline that transports oil from Alberta to the U.S. via a pipeline that runs underground in Wisconsin and Michigan. The latter state wants to close it - still another dispute for Trudeau and Biden to discuss tomorrow.

THIS IS PART OF BIGGER STORY - the deep antipathy throughout the Biden Administration toward fossil fuels (and support for the Paris climate accord). The long-term goal is to eliminate the use of oil, as Biden candidly acknowledged in the final presidential debate. He was criticized for that assertion, but he never fully retracted it.

The views expressed in this blog are those of the author and do not necessarily represent the opinions of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies.

The views expressed in this blog are provided as a general source of information based on information available as of the date of publication and should not be considered as personal investment advice or an offer or solicitation to buy and/or sell securities. Speculation or stated believes about future events, such as market or economic conditions, company or security performance, or other projections represent the beliefs of the author and do not necessarily represent the view of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and AGF accepts no responsibility for individual investment decisions arising from the use of or reliance on the information contained herein. Any financial projections are based on the opinions of the author and should not be considered as a forecast. The forward looking statements and opinions may be affected by changing economic circumstances and are subject to a number of uncertainties that may cause actual results to differ materially from those contemplated in the forward looking statements. The information contained in this commentary is designed to provide you with general information related to the political and economic environment in the United States. It is not intended to be comprehensive investment advice applicable to the circumstances of the individual.

AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). AGFA and AGFUS are registered advisors in the U.S. AGFI is a registered as a portfolio manager across Canadian securities commissions. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. The subsidiaries that form AGF Investments manage a variety of mandates comprised of equity, fixed income and balanced assets.

Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF's suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.

For further information, please visit AGF.com.

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