00:00Matt, interesting column, lots of data in here.
00:03You follow the money and you found that it is actually going to Canada.
00:06This is one of the greatest periods for overseas investment in Canada that we've seen in the
00:12century.
00:12And it may be unprecedented because, you know, we have to wait for the rest of the year.
00:17But the short answer to your question is that money is pouring into Canada like we have
00:24not seen from everywhere.
00:26The stocks and bonds are the obvious beneficiaries.
00:31One example is there's this company in the suburb of Toronto called IMAX.
00:36You may have seen the hit movie Odyssey this summer.
00:40Have you seen it yet?
00:41I have not seen it.
00:43I have, yes.
00:43Did you travel across countries or even get on an airplane to see it in 70 millimeter?
00:48No, actually, I saw it with my grandchildren in a non-IMAX theater.
00:52But my team, which includes Shin Pei, who compiles a lot of the data that we share with you,
01:00we are planning to see it at an IMAX theater again for me this summer.
01:05But the point is that whether it's IMAX, Son of Us, which is an energy company, Canada,
01:13since Mark Carney became the prime minister in March of 2025, has outperformed everyone
01:21in America and also the Eurozone and anywhere in the world.
01:26But 10 largest stock markets in the world.
01:28Canada appreciated the most, more than 40 percent, OK?
01:32And we know the past year has been pretty good for stocks.
01:35Yeah.
01:36Canada's done great.
01:38Its bond market is also doing great, partly because the inflation rate in Canada, unlike
01:43the Eurozone or America, is actually trending lower, OK, and is outperforming both the Eurozone
01:50and the U.S.
01:53aside from the money coming in, Canada is beloved.
01:57When I say that, if you go to Atlas, World Atlas, Canada is right up there with Switzerland
02:03as the most loved country in the world, OK?
02:07And guess why?
02:09Because of its policies being so reasonable to everybody else in the world.
02:15And where do you think that comes from?
02:16It comes from this guy, Mark Carney.
02:19Who is he?
02:19Well, he happens to be a Rhodes Scholar.
02:22He was a governor of the Bank of England as the first non-British citizen to do that.
02:28He was governor of the Bank of Canada.
02:31He was running Goldman Sachs operations before he got to the Bank of Canada.
02:35So this is somebody the world is...
02:37Oh, and spectacular Davos man.
02:39So this is somebody the world knows very well.
02:42He's very reasonable.
02:44He's very circumspect about, you know, anything without having the data, the evidence, and
02:50everything else.
02:51And the world likes this.
02:52And it now shows.
02:53Full disclosure, also former chair, right, of the Bloomberg Board.
02:57He just happens to be a former chair of the Bloomberg Board.
02:59That was his last job.
03:00He's done a lot.
03:01But then he went to be prime minister.
03:02Then he became prime minister.
03:03Yeah, I guess that's what happens after you get to Bloomberg.
03:05But I knew him back when.
03:07It's fascinating considering this is, right, I mean, really the closest ally, right, in
03:12American history.
03:13And yet we know it's...
03:14We share the biggest border.
03:15Right.
03:15And we know it's been tense.
03:16And yet they're off and running in a big way.
03:19And they're moving on in terms of doing deals and so on and so forth.
03:22I mean, look, I have to say tariffs, we all know, are taxes on consumers.
03:28And it should be said that way.
03:30And what has happened, especially that is egregious to the United States,
03:35is that we export a lot of booze.
03:39Okay, we're pretty good at that, you know, liquor and wine.
03:43California is hemorrhaging because provinces in Canada, not the federal government,
03:50but provinces in Canada are so understandably annoyed at the U.S.
03:56that they have decided to keep American alcohol off their shelves.
03:59And the California wine industry is just hemorrhaging at this point.
04:04I mean, it's something like $500 billion we're talking about.
04:08So that's an example of how bad this is.
04:10And, oh, I forgot to mention, you know, the energy company that is a top performer
04:16on the Toronto Stock Exchange, some of us, it is doing so well because 50% of its revenues
04:23come from the U.S.
04:24and it's not included in the tariffs.
04:26And why is that?
04:27Because energy is something that we need here to keep costs down.
04:32Right, exactly.
04:33Matt, you remind us that it's the U.S.'s largest trading partner behind Mexico.
04:37Correct.
04:37And I'm wondering, is it, should we think about it like a zero-sum game?
04:41Like, is Canada's gain, the U.S.'s loss in some of these cases?
04:45Without a doubt.
04:47You know, not only having been our most steadfast ally in American history since Canada became
04:54a country separated from the Commonwealth, but, you know, so much of the U.S. depends
05:01on Canada in so many ways.
05:03And it's a symbiotic relationship.
05:07And right now, you know, the worst part of the bargain is actually south of the border,
05:12not north of the border.
05:13And as long as this continues, that's going to be the case.
05:17One of the things I think is interesting, Matt, and I think about this a lot in this
05:20time where we are with a certain administration, a certain set of policies, but I wonder about
05:24the lasting and longer-term effect.
05:26And you include in your story that how Canada was looking to a non-U.S. company when it was
05:34looking to buy as many as 12 new submarines.
05:37And I guess in the past that they would have looked to the United States.
05:40Well, on submarines, probably not.
05:43Okay.
05:43Okay.
05:43However, you're right.
05:45That is the biggest, you know, military purchase for Canada ever.
05:53So it's significant that way.
05:54And when Carney made the decision to buy those German submarines from ThyssenKrupp this summer,
06:02you know, he did it with more than 50% approval.
06:05And so what's happening here is that Canada, and Carney specifically, is traveling around
06:11the world.
06:12He's connecting with just about every potential trading partner there is, which is something
06:17that his predecessors didn't really have to do.
06:20They didn't have to think about it.
06:21He's doing it.
06:22And this is going to pay off for Canada.
06:24It's going to get increasingly more of a partnership arrangement with countries around the world
06:31that it didn't have before.
06:33And that's because of Trump tariffs.
06:35And the Mark Carney factor here, is it all him or is it the Liberal Party?
06:40Canadians are like hobbits.
06:43They'll save the world for you.
06:45You know, they're consistently underestimated.
06:48Carney has consistently been underestimated, certainly by Trump and his enablers.
06:54And he's somebody who does the work.
06:56And that's sort of what Canada is about.
06:58He does the work, whatever the work is.
07:00And Canadians like that.
07:02They like people who have integrity, commitment, and gratitude.
07:07Yeah.
07:07Well, go figure.
07:09It seems pretty straightforward to me.
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