05/05/2025

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Carney vows to transform Canada o Premier seeks to create new economy to enable country to withstand Trump

OTTAWA: Prime Minister Mark Carney promised last week to oversee the biggest transformation of Canada’s economy since the end of World War II to enable it to “stand up” to Donald Trump. Carney led the Liberal Party to a dramatic fourth mandate in elections last Monday after a campaign focused on the US president’s threats to Canada’s economy and sovereignty. Liberals fell just short of the 172 seats needed for majority control of Parliament, but with 169 confirmed wins they will be in a strong position to pass legislation. Recounts in two closely contested electoral districts saw the party lose a seat in Quebec province but gain another in Ontario. At his first press conference since his victory, Carney struck a determined note. Known for weighing his words carefully, he said that he was “in politics to do great things, not to be something”. “And now that Canadians have honoured me with a mandate to bring about big changes quickly, I will work relentlessly to fulfill that trust,” he said. Canada’s strained relations with the United States – historically, its close ally and biggest trading partner – was among “immediate priorities”, he said, announcing a trip to Washington tomorrow to meet with Trump on trade and security issues. Canadians elected him “to stand up to President Trump”, Carney said, adding that he will act “with focus and determination”. “Our focus will be on both immediate trade pressures and the broader future economic and security relationship between our two sovereign nations.” But he warned also not to expect any “white smoke” from their first meeting signaling a sudden breakthrough. Carney reiterated his message from the campaign that he believes the old relationship between the two North American neighbours “based on steadily increasing integration is over”. “The questions now are how our nations will cooperate in the future,” he said. The oil major has been more seriously discussing the feasibility and merits of a takeover with its advisers in recent weeks, the report said, adding that any final decision will likely depend on whether the rival’s stock continues to slide. For several years, BP and Shell were almost equal in size, but over the past few years Shell has grown to almost twice the size of BP, with a market value of about £149 billion (RM842 billion). On Friday, when asked about a possible takeover bid for BP, Shell CEO Wael Sawan told the Financial Times he would rather buy back more Shell stock. A Shell spokesperson confirmed the comments. When asked on an earnings call about Shell’s capacity to launch sizable acquisitions, he said “we have to have our own house in order” and have “more work to do” despite progress over the last couple of years.

Carney speaking at a press conference in Ottawa. – AFPPIC

VIENNA: Eight Opec+ member countries on Saturday announced a sharp increase in oil production for the month of June at the risk of driving down already very low prices. Saudi Arabia, along with Russia and six other members of the oil cartel, will implement a production adjustment of 411,000 barrels a day out of the ground, as in May, according to a Opec+ statement, whereas the initial plan called for an increase of just 137,000 barrels. Numbering a total of 22 countries, most of which are highly dependent on oil, the group had until recently been exploiting supply scarcity to boost prices, holding millions of barrels in reserve. “OPEC+ has just thrown a bombshell to the oil market,” Jorge Leon, analyst with Rystad Energy, told AFP. “Last month’s decision was a wake up call. “Today’s decision is a definitive message that the Saudi led group is changing strategy and pursuing market share after years of cutting production,” he added. That about-face will also provide an opportunity to build good relations with Donald Trump’s United States, he said. Shortly after taking office in January Trump called on Saudi Arabia, which heads the cartel, to up production in order to bring prices down. Last month the group slightly lowered its forecast for oil demand growth, citing the impact of US tariffs on the world economy. The Organisation of the Petroleum Exporting Countries in 2016 came up with Opec+ to strengthen their weight on the global market. The eight countries that have agreed additional increases are Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman. – AFP Opec+ countries to increase oil output next month

“Canada has what the world needs, and we uphold the values the world respects.” Carney announced also that he would unveil his new Liberal government in the week of May 12 and that Parliament would return on May 26. King Charles III – Canada’s head of state, as it is a British Commonwealth country – will deliver the opening speech, Carney said. “This is a historic honour which matches the weight of our times. “It clearly demonstrates the sovereignty of our country,” Carney said in a pointed reference to Trump’s ambitions to make Canada the 51st American state. The ceremonial speech, which marks the opening of a new session of the Canadian Parliament and outlines the government’s goals, is usually delivered by the governor general, who is the King’s representative in the country. – AFP another suitor to make a first move, and its current work could help it get prepared for such a scenario, some of the people told Bloomberg News. Deliberations are in the early stages and Shell may opt to focus on share buybacks and bolt-on acquisitions rather than a megamerger, the report added. “As we have said many times before we are sharply focused on capturing the value in Shell through continuing to focus on performance, discipline and simplification,”a Shell spokesperson said when asked about the report. Under pressure to improve profitability and cut costs, BP chief Murray Auchincloss has announced plans to sell US$20 billion of assets through to 2027, reduced spending and share buybacks. It also announced the departure of its strategy chief as it tries to shore up investor confidence. Activist investor Elliott Investment Management had wanted a change of strategy chief as it seeks higher free cash flow through deeper cuts to spending and costs, sources familiar with the matter told Reuters. It has increased its stake in BP to just over 5%, placing it between top shareholders BlackRock and Vanguard, according to a regulatory filing. – Reuters

Trump “respects strength”, he added, explaining that this was why he was preparing the country for major changes including a massive build-up of infrastructure and new housing. The Conservatives, the main opposition party, as well as the Bloc Quebecois, the third-largest party in Parliament, both called for unity after the elections to fight US levies including on the automotive and steel sectors. Carney, who previously headed the Bank of Canada and the Bank of England, promised to maintain counter-tariffs on American products as long as Washington’s measures were in place. “This will be an incredibly exciting time as we take control of our economic destiny to create a new Canadian economy.” To this end, he promised to abolish existing trade barriers between Canadian provinces by July 1 to expand the economy, and to strengthen trade with “reliable allies”.

Shell studying merits of buying BP: Bloomberg LONDON: Shell Plc is working with advisers to evaluate a potential acquisition of rival BP Plc, though it is waiting for further stock and oil price declines before deciding whether to pursue a bid, Bloomberg News reported on Saturday, citing people familiar with the matter.

A Shell petrol station in London. – REUTERSPIC

A takeover of its cross-town London rival would make Shell an even bigger force in the global energy industry, giving it scale to rival the likes of Exxon and Chevron. A merger would also likely certainly invite regulatory scrutiny, considering the size of the deal. Shell this week reported strong first-quarter results surpassing profit expectations and launched a US$3.5 billion (RM14.9 billion) share buyback. Shell may also wait for BP to reach out or for