By Angela Harmantas
Commodity price bloodshed, bankruptcy filings and coming to a consensus on a national resources and energy strategy – here are three things we’re watching today:
Commodities had a terrible time of it yesterday, with gold in particular taking a tumble below $1100. At this point we’re all wondering how much lower it can possibly go, and how much more of a price decline the market can handle before panic sets in. I think we should see a slight increase in commodity prices this week as the shock dissipates, but I’m fully aware that I might be eating my words come Friday. I had the chance to chat with Rob McEwen yesterday about weathering this gold storm, so look for the full interview on Smallcappower this week.
A&P filed for bankruptcy yesterday – actually its second Chapter 11 filing in the past five years. During the grocery chain’s peak it owned over 16,000 stores in North America (I know, I was surprised as well) but it just couldn’t compete with the likes of Wal-Mart on the low end and Whole Foods on the high end. Should we view A&P’s downfall as something of a cautionary tale about a business that became too complacent, or is it symptomatic of the wider trend of declining small-to-medium-sized enterprises in North America? My view is the former, but I’ll acknowledge that it could be based on nostalgic memories of going to the neighbourhood A&P with my mother.
The annual Energy and Mines Ministers Conference is happening now in Halifax, and it’s coming at a critical time when commodity price softness is exposing the vulnerability of the Canadian economy. Many of the talking points seem to be same old, same old, however – namely market access for Canadian crude, which federal Natural Resources Minister Greg Rickford highlighted in his speech on Monday. At this point the Keystone XL approval is likely a matter of when, not if, but shouldn’t we be putting a priority on getting more short-term viable solutions?
Angela Harmantas has covered the mining, energy and natural resources markets in North America, South America, Australia and Africa. Her work appears in major international trade publications, national newspapers and online platforms. Be sure to read her daily blog exclusively on SmallCapPower.
