Compiled by Glen Hallick, MarketsFarm
WINNIPEG, Sept. 2 (MarketsFarm) – The following is a glance at the news moving markets in Canada and globally.
– Baskin Wealth Management called on Canadian National Railway (CN) on Thursday to give up its pursuit to acquire the Kansas City Southern Railway (KCS). The US$30 billion deal was blocked by the United States Surface Transportation Board (STB) on Wednesday, citing the voting trust failed to meet requirements. Also, TCI Fund Management Inc. demanded on Wednesday the resignations CN chief executive officer Jean-Jacques Ruest and board chair Robert Pace, claiming they should be held responsible. Both Baskin Wealth and TCI own shares in CN. For the latter to withdraw its bid would require it to pay US$1 billion in break fees, which would be on top of the US$700 million it previously paid KCS to halt its negotiations with chief rival Canadian Pacific Railway (CP).
– The China-based tabloid Global Times stated on Thursday that Canadians Michael Spavor and Michael Kovrig allegedly shared photos and videos of secret Chinese military equipment. The two Michaels were detained by Chinese authorities in December 2018, shortly after Canadian authorities arrested Huawei executive Meng Wanzhou at the request of U.S. After months of being held behind bars, the two Michaels were charged with espionage. In August Spavor was sentenced to 11 years in prison, while Kovrig still awaits his sentence after being found guilty in March. Canada and several other countries have condemned China’s treatment of Spavor and Kovrig. The Global Times is published by the People’s Daily, which is owned by the Chinese Communist Party.
– China warned the U.S. on Thursday that souring relations between the two countries would undermine efforts to tackle climate change. Chinese Foreign Minister Wang Yi told visiting U.S. climate envoy John Kerry that co-operation on climate between their countries was an “oasis.” Wang added, “But surrounding the oasis is a desert and the oasis could be desertified very soon.” Kerry retorted that China needs to take additional measures to reduce its emissions.”