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The stock market is not the economy in an important way – Yahoo Canada Finance

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This post was originally published on TKer.co

The U.S. economy is closely related to the U.S. stock market. But that relationship is not perfect in a number of ways.

An important way the two differ is international exposure.

According to FactSet, S&P 500 companies1 generate around 40% of revenue outside of the U.S.2 That means these companies are significantly dependent on the health of the international economies in which they operate. They employ abroad, source goods abroad, and sell abroad.

This is not to say the U.S. economy is totally decoupled from the rest of the world: Annual exports account for $3 trillion of the $25 trillion worth of U.S. GDP.

<img class="caas-img caas-lazy has-preview" alt="The S&P 500 is a global story. (Source: FactSet)” data-src=”https://s.yimg.com/ny/api/res/1.2/KmdlLzyr.Jf1Dxb.EaKV7Q–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MA–/https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Fabe02f11-9712-4997-821c-5e82fa02dbd2_1118x642.png”><img alt="The S&P 500 is a global story. (Source: FactSet)” src=”https://s.yimg.com/ny/api/res/1.2/KmdlLzyr.Jf1Dxb.EaKV7Q–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MA–/https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Fabe02f11-9712-4997-821c-5e82fa02dbd2_1118x642.png” class=”caas-img”>
The S&P 500 is a global story. (Source: FactSet)

But when you think of the U.S. economy, you generally think about activity inside the borders of the U.S. This includes U.S. employment levels, U.S. manufacturing activity, U.S. services sector activity, etc. This, by the way, includes non-U.S. companies with footprints in the U.S. like Toyota, B.P., Samsung, and Nestle.

We’re discussing this now because of news from FedEx FDX -1.25%↓ , a U.S.-based S&P 500 company. From the company’s press release on Thursday (emphasis added):

First quarter results were adversely impacted by global volume softness that accelerated in the final weeks of the quarter. FedEx Express results were particularly impacted by macroeconomic weakness in Asia and service challenges in Europe, leading to a revenue shortfall in this segment of approximately $500 million relative to company forecasts. FedEx Ground revenue was approximately $300 million below company forecasts.

FedEx is one of the so-called “early reporters” — that is, companies whose quarters end a month earlier than most companies. The last two months of FedEx’s quarter overlaps with the first two months of most companies’ Q3. And so the company’s warning may serve as a leading indicator for the upcoming Q3 earnings season, which kicks off in mid-October.

As Asia struggles with COVID-related lockdowns and Europe wrestles with surging energy costs, companies with significant exposures in these regions may underperform those with greater dependence on the U.S., where the economy has been resilient.

There’s also the matter of the surging U.S. dollar, which is leading to the dollar value of revenue generated abroad shrinking for U.S.-based multinational companies. Morgan Stanley analysts recently estimated that every 1% increase in the dollar index represents a roughly 0.5% reduction in S&P 500 earnings per share.

While dollar strength may be good news for U.S. importers and American vacationers traveling abroad, it’s bad news for everyone else watching their own currencies lose purchasing power in the international markets.

All of this raises doubt about analysts’ current forecasts for earnings growth, which appear at risk of getting revised down further. This is a big deal because, as TKer readers know, earnings are the most important driver of stock prices over the long run.

For investors and traders, the key question is what’s priced into the markets. The strong dollar and economic weakness abroad are known stories that have weighed on markets for a while. So, while these are clear headwinds, it’s very possible to see markets climb as analysts factor in the deteriorating macro backdrop into their earnings forecasts.

More from TKer:

Reviewing the macro crosscurrents ????

There were a few notable datapoints from last week to consider:

  • ???? Inflation is still high. The consumer price index climbed 0.1% month over month in August, unexpectedly accelerating from 0.0% in July. Economists had expected the metric to decline 0.1% amid falling energy prices. While energy prices indeed fell during the period (gasoline prices tumbled 10.6%), prices for food and shelter remained hot, rising 0.8% and 0.7%, respectively. Excluding food and energy prices — which tend to be more volatile in the short run — core CPI growth unexpectedly accelerated to 0.6% in August from 0.3% in July. On a year-over-year basis, CPI was up 8.3% (hotter than expected), and core CPI was up 6.3% (also hotter than expected).

<img class="caas-img caas-lazy has-preview" alt="Inflation is still high. (Source: BLS)” data-src=”https://s.yimg.com/ny/api/res/1.2/wuQwMF_BQtkO39wdlfC7Nw–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MA–/https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F561de75c-dde2-430d-bf71-b55ef32d2f01_923x453.png”><img alt="Inflation is still high. (Source: BLS)” src=”https://s.yimg.com/ny/api/res/1.2/wuQwMF_BQtkO39wdlfC7Nw–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MA–/https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F561de75c-dde2-430d-bf71-b55ef32d2f01_923x453.png” class=”caas-img”>
Inflation is still high. (Source: BLS)
  • ???? Expectations for inflation are coming down. From the University of Michigan’s September Survey of Consumers: “With continued declines in energy prices, the median expected year-ahead inflation rate declined to 4.6%, the lowest reading since last September. At 2.8%, median long run inflation expectations fell below the 2.9-3.1% range for the first time since July 2021.“ The New York Fed’s August Survey of Consumer Expectations released Monday echoed this sentiment. The median expectation for inflation one year ahead was 5.7% in August, down from its June high of 6.8%. From the NY Fed: “Expectations about year-ahead price increases for gas also continued to decline, with households now expecting gas prices to be roughly unchanged a year from now.“

<img class="caas-img caas-lazy has-preview" alt="Expectations for inflation have improved. (Source: NY Fed)” data-src=”https://s.yimg.com/ny/api/res/1.2/TGSXxLhw44yVw5onXhrylA–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MA–/https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F66874a5f-6447-4a4a-ac8d-711aff75fccb_737x583.png”><img alt="Expectations for inflation have improved. (Source: NY Fed)” src=”https://s.yimg.com/ny/api/res/1.2/TGSXxLhw44yVw5onXhrylA–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MA–/https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F66874a5f-6447-4a4a-ac8d-711aff75fccb_737x583.png” class=”caas-img”>
Expectations for inflation have improved. (Source: NY Fed)
<img class="caas-img caas-lazy has-preview" alt="Plans for prices are coming down. (Source: NFIB)” data-src=”https://s.yimg.com/ny/api/res/1.2/YJG5nd2nl2BcyczWStTk_Q–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MA–/https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F0d9ee563-7f48-42da-8539-e13afcf62c55_833x570.png”><img alt="Plans for prices are coming down. (Source: NFIB)” src=”https://s.yimg.com/ny/api/res/1.2/YJG5nd2nl2BcyczWStTk_Q–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MA–/https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F0d9ee563-7f48-42da-8539-e13afcf62c55_833x570.png” class=”caas-img”>
Plans for prices are coming down. (Source: NFIB)
  • ???? The labor market is strong. Even as the economy cools and hiring slows, employers seem to be holding on tight to their employees. Initial claims for unemployment insurance came in at 213,000 for the week ending September 10, down from 218,000 the week prior. While the number is up from its six-decade low of 166,000 in March, it remains near levels seen during periods of economic expansion.

<img class="caas-img caas-lazy has-preview" alt="Initial claims have lower. (Source: DOL)” data-src=”https://s.yimg.com/ny/api/res/1.2/wkOqAjwGSSO40do1qeY3aA–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MA–/https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Fa6897e7b-c70c-4cea-9047-247e52130f88_767x294.png”><img alt="Initial claims have lower. (Source: DOL)” src=”https://s.yimg.com/ny/api/res/1.2/wkOqAjwGSSO40do1qeY3aA–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MA–/https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Fa6897e7b-c70c-4cea-9047-247e52130f88_767x294.png” class=”caas-img”>
Initial claims have lower. (Source: DOL)
  • ???? Small businesses are hiring. From Bank of America: “…small businesses continue to see strength in payroll payments. The three-month rolling average of payroll spend per client rose 11% year-over-year (YoY) in August, suggesting robust hiring and wage growth momentum. Restaurant and bar payroll payments may be moderating the most from recent highs, partly reflecting easing wage inflation in leisure & hospitality, but even here 18% YoY growth in August is reassuring.”

<img class="caas-img caas-lazy has-preview" alt="Small business wages are up. (Source: Bank of America)” data-src=”https://s.yimg.com/ny/api/res/1.2/OZV6uRYwdw059LTfwF1TrQ–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MA–/https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F9c683a98-018f-45c0-9702-d812a274caef_949x389.png”><img alt="Small business wages are up. (Source: Bank of America)” src=”https://s.yimg.com/ny/api/res/1.2/OZV6uRYwdw059LTfwF1TrQ–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MA–/https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F9c683a98-018f-45c0-9702-d812a274caef_949x389.png” class=”caas-img”>
  • ???? Retail sales are holding up. In August, retail sales unexpectedly climbed by 0.3% month over month. Autos sales climbed 2.8% while gas station sales fell 4.2%. Excluding autos and gas, sales increased by 0.3%, which wasn’t as strong as the 0.5% gain expected. The report reflected strength in “doing stuff” — restaurant and bar sales were up 1.1% — and weakness in “buying stuff” — furniture sales were down 1.3%. Note: Retail sales figures are not adjusted for inflation. Real sales levels are lower.

<img class="caas-img caas-lazy has-preview" alt="Retail sales rose. (Source: @USCensusBureau)” data-src=”https://s.yimg.com/ny/api/res/1.2/0hfVu8x8S5WFKcfh6Dptew–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MA–/https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Fbb0a88ec-b2be-4c15-bb33-d0a522e76452_1920x1123.jpeg”><img alt="Retail sales rose. (Source: @USCensusBureau)” src=”https://s.yimg.com/ny/api/res/1.2/0hfVu8x8S5WFKcfh6Dptew–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MA–/https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Fbb0a88ec-b2be-4c15-bb33-d0a522e76452_1920x1123.jpeg” class=”caas-img”>
<img class="caas-img caas-lazy has-preview" alt="Inventory levels are up. (Source: @USCensusBureau)” data-src=”https://s.yimg.com/ny/api/res/1.2/VbGYINz7zJvY9WPPyU6nQg–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MA–/https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F49e55381-7a0b-484d-ab1e-09d07db7f74d_1036x598.png”><img alt="Inventory levels are up. (Source: @USCensusBureau)” src=”https://s.yimg.com/ny/api/res/1.2/VbGYINz7zJvY9WPPyU6nQg–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MA–/https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F49e55381-7a0b-484d-ab1e-09d07db7f74d_1036x598.png” class=”caas-img”>
<img class="caas-img caas-lazy has-preview" alt="Industrial production cools a bit. (Source: Federal Reserve)” data-src=”https://s.yimg.com/ny/api/res/1.2/Jug2CYAWmiIOqwt6HZbTcg–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MA–/https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F0ef8c7bd-48a3-4f27-94e3-3e794e10adf9_858x588.png”><img alt="Industrial production cools a bit. (Source: Federal Reserve)” src=”https://s.yimg.com/ny/api/res/1.2/Jug2CYAWmiIOqwt6HZbTcg–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MA–/https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F0ef8c7bd-48a3-4f27-94e3-3e794e10adf9_858x588.png” class=”caas-img”>
<img class="caas-img caas-lazy has-preview" alt="Manufacturing activity continues to soften in the Mideast. (Source: Philly Fed)” data-src=”https://s.yimg.com/ny/api/res/1.2/RPSXfIjrJET1YPCBkEs8tQ–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MA–/https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Fb7286c4a-f99d-430f-965b-cf537035133b_1424x981.png”><img alt="Manufacturing activity continues to soften in the Mideast. (Source: Philly Fed)” src=”https://s.yimg.com/ny/api/res/1.2/RPSXfIjrJET1YPCBkEs8tQ–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MA–/https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Fb7286c4a-f99d-430f-965b-cf537035133b_1424x981.png” class=”caas-img”>
Manufacturing activity continues to soften in the Mideast. (Source: Philly Fed)

undefined

<img class="caas-img caas-lazy has-preview" alt="Mortgage rates are up. (Source: Freddie Mac)” data-src=”https://s.yimg.com/ny/api/res/1.2/xz5J2Wj_B8poJ.t6pfq6CA–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MA–/https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F88fdc680-4099-41aa-b705-e5c7671266cb_1200x630.png”><img alt="Mortgage rates are up. (Source: Freddie Mac)” src=”https://s.yimg.com/ny/api/res/1.2/xz5J2Wj_B8poJ.t6pfq6CA–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MA–/https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F88fdc680-4099-41aa-b705-e5c7671266cb_1200x630.png” class=”caas-img”>
  • ???? Stocks tumbled last week with the S&P 500 falling 4.7% to close at 3,873.33. The index is now down 19.2% from its January 3 closing high of 4,796.56 and up 5.6% from its June 16 closing low of 3,666.77.

Putting it all together ????

Retail sales and manufacturing activity data confirm that the economy continues to cool. Meanwhile, inventory levels continue to rise, suggesting supply chains constraints continue to ease.

The strong labor market — marked by low layoff activity — continues to put money in consumers’ pockets, preventing the bottom from falling out of consumer spending. Unfortunately, the strong consumer is part of the reason why inflation has been high.

Indeed, while some price indicators have been easing, inflation remains troublingly high. And so financial markets remain volatile as the Fed increasingly tightens financial conditions in its effort to cool prices. As such, recession risks linger and analysts have been trimming their forecasts for earnings. For now, all of this makes for a conundrum for the stock market until we get “compelling evidence” that inflation is indeed under control.

This post was originally published on TKer.co

Sam Ro is the author of TKer.co. Follow him on Twitter at @SamRo

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Construction wraps on indoor supervised site for people who inhale drugs in Vancouver

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VANCOUVER – Supervised injection sites are saving the lives of drug users everyday, but the same support is not being offered to people who inhale illicit drugs, the head of the BC Centre for Excellence in HIV/AIDS says.

Dr. Julio Montaner said the construction of Vancouver’s first indoor supervised site for people who inhale drugs comes as the percentage of people who die from smoking drugs continues to climb.

The location in the Downtown Eastside at the Hope to Health Research and Innovation Centre was unveiled Wednesday after construction was complete, and Montaner said people could start using the specialized rooms in a matter of weeks after final approvals from the city and federal government.

“If we don’t create mechanisms for these individuals to be able to use safely and engage with the medical system, and generate points of entry into the medical system, we will never be able to solve the problem,” he said.

“Now, I’m not here to tell you that we will fix it tomorrow, but denying it or ignoring it, or throw it under the bus, or under the carpet is no way to fix it, so we need to take proactive action.”

Nearly two-thirds of overdose deaths in British Columbia in 2023 came after smoking illicit drugs, yet only 40 per cent of supervised consumption sites in the province offer a safe place to smoke, often outdoors, in a tent.

The centre has been running a supervised injection site for years which sees more than a thousand people monthly and last month resuscitated five people who were overdosing.

The new facilities offer indoor, individual, negative-pressure rooms that allow fresh air to circulate and can clear out smoke in 30 to 60 seconds while users are monitored by trained nurses.

Advocates calling for more supervised inhalation sites have previously said the rules for setting up sites are overly complicated at a time when the province is facing an overdose crisis.

More than 15,000 people have died of overdoses since the public health emergency was declared in B.C. in April 2016.

Kate Salters, a senior researcher at the centre, said they worked with mechanical and chemical engineers to make sure the site is up to code and abidies by the highest standard of occupational health and safety.

“This is just another tool in our tool box to make sure that we’re offering life-saving services to those who are using drugs,” she said.

Montaner acknowledged the process to get the site up and running took “an inordinate amount of time,” but said the centre worked hard to follow all regulations.

“We feel that doing this right, with appropriate scientific background, in a medically supervised environment, etc, etc, allows us to derive the data that ultimately will be sufficiently convincing for not just our leaders, but also the leaders across the country and across the world, to embrace the strategies that we are trying to develop.” he said.

Montaner said building the facility was possible thanks to a single $4-million donation from a longtime supporter.

Construction finished with less than a week before the launch of the next provincial election campaign and within a year of the next federal election.

Montaner said he is concerned about “some of the things that have been said publicly by some of the political leaders in the province and in the country.”

“We want to bring awareness to the people that this is a serious undertaking. This is a very massive investment, and we need to protect it for the benefit of people who are unfortunately drug dependent.” he said.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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N.B. election: Parties’ answers on treaty rights, taxes, Indigenous participation

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FREDERICTON – The six chiefs of the Wolastoqey Nation in New Brunswick distributed a survey on Indigenous issues to political parties ahead of the provincial election, which is scheduled to kick off Thursday. Here are some of the answers from the Progressive Conservative, Liberal and Green parties.

Q: How does your party plan to demonstrate a renewed commitment to recognizing our joint treaty responsibilities and acknowledging that the lands and waters of this territory remain unceded?

Progressive Conservative: The party respectfully disagrees with the assertion that land title has been unceded. This is a legal question that has not been determined by the courts.

Liberal: When we form government, the first conversations the premier-designate will have is with First Nations leaders. We will publicly and explicitly acknowledge your treaty rights, and our joint responsibility as treaty people.

Green: The Green Party acknowledges that New Brunswick is situated on the unceded and unsurrendered territories of the Wolastoqiyik, Mi’kmaq and Peskotomuhkati peoples, covered by the Treaties of Peace and Friendship. Our party is committed to establishing true nation-to-nation relationships with First Nations, grounded in mutual respect and co-operation as the treaties intended.

Q: How does your party propose to approach the issue of provincial tax agreements with First Nations?

Progressive Conservative: The government of New Brunswick operates in a balanced and fair manner with all organizations, institutions and local governments that represent the citizens of this province, including First Nations. Therefore, we cannot offer tax agreements that do not demonstrate a benefit to all citizens.

Liberal: Recent discussions with First Nations chiefs shed light on the gaps that existed in the previous provincial tax agreements with First Nations. Our party is committed to negotiating and establishing new tax agreements with First Nations that address the local needs and priorities and ensure all parties have a fair deal.

Green: The Green Party is committed to fostering a respectful relationship with First Nations in New Brunswick and strongly opposes Premier Blaine Higgs’s decision to end tax-sharing agreements. We believe reinstating these agreements is crucial for supporting the economic development and job creation in First Nation communities.

Q: How will your party ensure more meaningful participation of Indigenous communities in provincial land use and resource management decision-making?

Progressive Conservative: The government of New Brunswick has invested significant resources in developing a robust duty to consult and engagement process. We are interested in fully involving First Nations in the development of natural resources, including natural gas development. We believe that the development of natural gas is better for the environment — because it allows for the shutdown of coal-fired power plants all over the globe — and it allows for a meaningful step along the path to reconciliation.

Liberal: Our party is focused on building strong relations with First Nations and their representatives based on mutual respect and a nation-to-nation relationship, with a shared understanding of treaty obligations and a recognition of your rights. This includes having First Nations at the table and engaged on all files, including land-use and resource management.

Green: We will develop a new Crown lands management framework with First Nations, focusing on shared management that respects the Peace and Friendship Treaties. We will enhance consultation by developing parameters for meaningful consultation with First Nations that will include a dispute resolution mechanism, so the courts become the last resort, not the default in the face of disagreements.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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Canadian Coast Guard crew member lost at sea off Newfoundland

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ST. JOHN’S, N.L. – A crew member of a Canadian Coast Guard ship has been lost at sea off southern Newfoundland.

The agency said in a release Wednesday that an extensive search and rescue effort for the man was ended Tuesday evening.

He was reported missing on Monday morning when the CCGS Vincent Massey arrived in St. John’s, N.L.

The coast guard says there was an “immediate” search on the vessel for the crew member and when he wasn’t located the sea and air search began.

Wednesday’s announcement said the agency was “devastated to confirm” the crew member had been lost at sea, adding that decisions to end searches are “never taken lightly.”

The coast guard says the employee was last seen on board Sunday evening as the vessel sailed along the northeast coast of Newfoundland.

Spokeswoman Kariane Charron says no other details are being provided at this time and that the RCMP will be investigating the matter as a missing person case.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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