Canada's Pipeline Announcements Loom as RBC Warns of Capital Rush
Royal Bank of Canada (RBC) CEO Dave McKay believes that Canada is on the cusp of major pipeline announcements, but warns that the country needs to move fast to secure capital. McKay spoke at a Bloomberg Newsmakers event in Toronto, saying he expects news related to pipelines soon.
Canada's economy has been resilient despite sectoral tariffs and inflation, according to McKay, who noted that policy uncertainty around the Canada-United States-Mexico Agreement (CUSMA) is the primary factor in restrained business investment. He expressed confidence that negotiators are making progress on CUSMA, but acknowledged that it's a protracted process.
RBC has launched a $1 billion growth fund to help Canadian companies scale and remain in the country. The firm's first two investments through the fund were in Vancouver quantum-computing company Photonic Inc. and Ontario healthcare platform League Inc., McKay said.