Trudeau’s troubling reputation in Asia

Hello, readers! Welcome back to Business Cycle – a look at what The Globe and Mail’s business columnists are talking about this week. In the latest edition, we’re talking about the economic opportunity of Taylor Swift’s visit to Canada, Canada’s troubling international trade with Asia and Alberta’s dismissal of the entire AIMCo leadership team.?

(Don’t forget - Subscribe to this newsletter from The Globe and Mail’s LinkedIn page to get a notification when the latest edition is published every Thursday.)

Toronto and Vancouver must seize the economic opportunity that is Taylor Swift

By Viet Vu

Taylor Swift's The Eras Tour is making its Canadian debut. The pop icon has six concerts in Toronto – Nov. 14 to 16 and Nov. 21 to 23 – and three concerts in Vancouver – Dec. 6 to 8 – to end off her record-breaking international tour.??

Contributing columnist Viet Vu writes that The Eras Tour, which is expected to bring in close to 100,000 visitors, presents an economic opportunity for Toronto and Vancouver: make those tourists enchanted with our cities. Short-term rental demand is up and hotel prices are surging, he argues, but it is critical to prepare and properly manage everything from transit to tourist attractions since it will determine the appeal of these cities for years to come.?

"Toronto and Vancouver occupy a blank space in these visitors’ minds. Their experience attending this concert will determine the appeal of the cities for years to come. If both can successfully host the finale of the Eras Tour, it will project to the world that we are, in fact, open for business. To some, this may seem like champagne problems. But how the world views our cities and country can impact investment opportunities, talent attraction and even instill a sense of pride for those who already live here."

Do you agree that The Eras Tour will offer economic opportunity for Canadians cities? Check out the full opinion piece here.

Asia does not take Team Trudeau seriously. This hobbles Canada’s international trade

By Stephen Nagy

There was a time when progressive Asians welcomed Prime Minister Justin Trudeau and his liberal ideas on ethnicity and gender representation, immigration and the environment, contributing columnist Stephen Nagy writes. But that is no longer the case – in fact, Mr. Trudeau no longer enjoys such favourable sentiments in Asia.?

He argues that Canada’s trade pillar is hobbled by the government’s misreading of the region and mishandling of consequential relationships. He points to fractured relationships with China over electric vehicle tariffs, India over foreign interference, Trudeau’s last-minute walkout at the 2017 Trans-Pacific Partnership – and the list goes on.

"Today, Canada is seen in the region as a nice but distant country that is not a credible or a serious partner. Mr. Trudeau is perceived as decadent, distracted and doing everything except listening to voters to hang on to power."

What needs to happen to repair Canada’s international relations with Asian countries? Check out the full opinion piece here.

Alberta Premier Smith must resist the temptation to treat AIMCo as the province’s cookie jar

By Andrew Willis

Last week, the Alberta government dismissed chief executive officer Evan Siddall and the entire board of Alberta Investment Management Corp. (AIMCo), its public-sector pension manager, citing a need for “a clean slate” after a run-up in costs. The province later appointed long-time provincial bureaucrat Ray Gilmour to take over as the company’s head.

Columnist Andrew Willis writes that this extraordinary intervention in an organization from government promises to be “a disaster” for Alberta retirees and a setback for what’s known around the world as the Canadian model: capital pools set up to deliver on the promise of a reliable pension.

"AIMCo has always followed the global mandate adopted by the country’s other large pension funds – known globally as the Maple Eight – and Norway’s massive, oil-fuelled sovereign wealth fund. The Edmonton-based fund focused on earning the best possible risk-adjusted returns for Albertans. That remains the smart strategy. AIMCo’s approach offsets the biggest risk facing the province’s finances: a downturn in the oil patch. If Ms. Smith’s UCP puts a finger on the AIMCo scale in favour of investments in Alberta, they are tying their citizens’ future retirement income to fossil fuels."

What do you think of Alberta’s intervention in AIMCo? Is it justified? Check out the full opinion piece here.

More business headlines we’re following this week:?

• Can Canada’s psychedelic drug developers shake off the sector’s bad trip?
• Cryptocurrency CEO kidnapped for ransom in Toronto
• Relaxed mortgage rules will cost homebuyers in the long run, BoC senior deputy warns

The Globe's business opinion pieces are commissioned and edited by Ethan Lou. If you would like to write in this section, please send pitches to [email protected].?

Thank you for reading our latest edition! We'll be back next Thursday with another Business Cycle roundup.

Until then, sign up for more great newsletters from The Globe and Mail and continue reading at www.theglobeandmail.com. And let us know what you think by sending an email to [email protected].