Good morning. The four-city brawl over who gets to host a new multilateral defence bank is heating up. In focus today, we weigh the fighting words from Ottawa, Vancouver, Montreal and Toronto.
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In the news
Pipelines: Ottawa and Alberta have agreed to a $130-per-tonne carbon price by 2040, with the federal cabinet set to review the deal this morning, The Globe and Mail’s Ottawa bureau reports, citing provincial and federal sources.
Deals: Calgary-based Keyera Corp. announced it had closed its $5.15-billion acquisition of Plains All American LP’s Canadian natural gas liquids business – even as the Competition Bureau is challenging the deal.
AI: Labour leaders are calling on Ottawa to enact legislation that would mandate employers to consult with employees and unions before they introduce artificial intelligence systems in the workplace.
In focus
The growing offensive to host a new defence bank
Four cities. One prize. An escalating series of claims about who has the stronger realm.
Fight!
From left, Vancouver, Ottawa, Toronto and Montreal are competing to host a new multinational defence bank.ROBYN BECK/AFP/Getty Images
Okay, so it’s not quite as cut-throat as the new Mortal Kombat movie. But as far as municipal battles go, the competition to host the Defence, Security and Resilience Bank is turning into a bloody affair.
Last week, politicians in Quebec accused Toronto of waging a “fear campaign” by raising the possibility of another referendum. The Parti Québécois remains competitive ahead of the province’s October election and continues to lay the groundwork for another sovereignty push. Ontario Premier Doug Ford said yesterday that he wasn’t interested in criticizing other cities’ pitches – even letting loose a “Go Habs!” cheer at a news conference – but you can see how the race might be entering a messier phase in the months since Canada first learned it was in the running to host the bank.
It’s no wonder. The winning city can expect the bank to create about 3,500 jobs, raise its profile on the global stage, and place it at the frontier of a new sector of defence financing in Canada – one that Rod Phillips, vice-chair of Canaccord Genuity Group Inc. and chair of Toronto Global, described as “prospectively as big as mining was” for Canadian capital markets in the late 19th century.
The bank, expected to open by the end of this year, could eventually include as many as 40 participating countries, drawn from NATO members and allied nations. Created to provide long-term, lower-cost financing for defence, security and resilience projects, the bank would place its host city at the centre of a new allied effort to turn geopolitical anxiety into industrial capacity, procurement power and private investment.
The cities have released pitch decks and bid books; held press conferences highlighting access to capital, defence industries, diplomatic networks and specialized talent; rallied local companies and universities; and offered to lend employees from local institutions, The Globe’s Pippa Norman and Maura Forrest wrote earlier this week.
Here, drawn from the cities’ own proposals, are the elevator pitches and fighting words behind each bid.
The National Defence headquarters in Ottawa is the administrative hub of the Canadian Armed Forces and the Department of National Defence.Sean Kilpatrick/The Canadian Press
Ottawa-Gatineau
The elevator pitch: A defence bank in a defence town.
“This is not a region preparing to build a defence economy; it is a region that already has one.”
“You cannot run a sovereign defence-finance institution from the periphery of sovereign financial authority.”
“Its effectiveness depends on daily proximity to Canada’s defence decision makers, integration with our allied diplomatic network, and access to the sovereign financial governance architecture that will regulate and backstop everything it does.”
“Those conditions only exist in Canada’s National Capital Region.”
Bay Street in downtown Toronto.Nathan Denette/The Canadian Press
Toronto
Elevator pitch: Bay Street, but make it NATO.
“As the country’s leading centre of finance, defence manufacturing, research and tech, along with transportation links to the rest of the world unmatched anywhere else in Canada, Toronto is Canada’s most credible option to host the DSRB.”
“Simply put, Toronto offers Canada the best chance of securing global backing to host the DSRB and to welcome all the benefits that hosting the DSRB would bring to the entire country.”
“There is no other Canadian jurisdiction like the GTA that converges critical mineral supply chain, Made-In-Canada nuclear power, advanced industry and world-class talent at this scale.”
“Canada’s political stability, our AAA-rated financial system, and Toronto’s world-class talent make this the strongest case any country can offer.”
A Bombardier employee works on an aircraft in Dorval, Que., April, 2025.Christinne Muschi/The Canadian Press
Montreal
The elevator pitch: Aerospace, diplomacy and deep tech in one hangar.
“Montréal stands alone in Canada as the city that offers all the winning conditions to host and propel the DSR Bank. Nowhere else do finance, aerospace, deep‑tech innovation, and a uniquely robust international organizations community converge with such strength."
“We are a capital of knowledge and a hub for dual‑use industries that bring together defence, artificial intelligence, quantum technologies, cybersecurity, and aerospace. With a track record like ours, the choice is clear.”
“Montréal is the only place in the world capable of assembling an aircraft from end to end.”
The Port of Vancouver.Paige Taylor White/The Globe and Mail
Vancouver
The elevator pitch: “B.C. has what the world needs.”
That’s a quote from B.C. Premier David Eby, who also highlighted that the province offers “major ports and strong relationships with NATO nations and allied partners.”
“As the economic engine of the new Canadian economy, we are ready to seize the economic and strategic advantages in hosting a global institution of this scale.”
“Our city offers a secure, world-class environment that naturally attracts global talent. With a deeply integrated international business community, Vancouver is ready to accelerate the bank’s operations and deliver immediate results for our collective security.”
Charted
Lament for a lost generation
Canada’s affordability crisis is leaving many young workers unable to reach the middle-class milestones their parents took for granted, John Turley-Ewart writes. According to the 2021 census, 16.3 per cent of millennials aged 25 to 39 live with parents, compared to 8.2 per cent of boomers.
Quoted
A lot of people frame startups as zero-sum games. I don’t think that’s the case. If you’re talking about replacing every keyboard on the planet, it’s just such a huge market.
— Neil Chudleigh, creator of Superwhisper
You talk, it types: How a Toronto AI startup hopes to kill the keyboard.
Up next
More files we’re following
Intersect: Join us at theglobeandmail.com around 2 p.m. EST for The Globe and Mail’s Calgary edition of Intersect, an event focused on building a stronger Alberta and Canada. National decision-makers, emerging policy directions, and cross-sector leaders will explore a national vision to spur growth, innovation and economic development in the province and beyond.
By the numbers: The BoC releases its summary of deliberations from its last rate announcement – a hold, but with hints of hikes down the road. The bank’s external deputy governor will deliver a speech on what AI adoption could mean for productivity and economic potential.
After markets close: Earnings today include Manulife Financial Corp., Stantec Inc., CCL Industries Inc. and Cisco Systems Inc.
Morning update
Global markets were muted after a shaky truce held between Washington and Tehran despite a deadlock in peace talks.
Wall Street futures were mixed, while TSX futures edged lower.
Overseas, the pan-European STOXX 600 was up 0.38 per cent in morning trading. Britain’s FTSE 100 edged up 0.04 per cent, Germany’s DAX advanced 0.75 per cent and France’s CAC 40 gave back 0.33 per cent.
In Asia, Japan’s Nikkei closed 0.84 per cent higher, while Hong Kong’s Hang Seng gained 0.15 per cent.
The Canadian dollar traded at 73.03 U.S. cents.