In a recent column, Trevor Hancock said “the tobacco industry is a truly lethal and evil industry that needs to be stamped out.”
Absolutely, no argument from me.
But let’s come close to home as I raise a contradiction.
According to a report by GPI Atlantic, smoking costs British Columbians an estimated $525 million annually in medical care costs, and an estimated $904 million in productivity losses due to the premature deaths and excess disability of smokers.
The report also says that the health-care costs for treatment of tobacco-related illness are estimated to be $2.3 billion each year.
Additionally, smoking is the leading cause of preventable death in British Columbia, causing up to 6,000 deaths in the province each year, killing more people than all other drugs, motor vehicle collisions, murder, suicide, and HIV/AIDS combined.
And as a user of medical services over the past nine years (six surgeries, one round of treatment for cancer) I can report that the first question asked before each diagnosis was “do you smoke?” Answer: no.
So, I have absolute faith in the statistics. The total annual bill for tobacco-related health-care costs paid by the provincial government is more than $3.7 billion.
And here’s the contradiction: across the street from Victoria city hall is the headquarters for British Columbia Investment Management Corporation, aka BCI.
It was set up by way of the 1999 Public Sector Pension Plans Act to provide investment services to British Columbia’s public sector pensions plans, including teachers, health-care workers, education support workers, college instructors, municipal firefighters, to name just a few of the nearly 30 organizations who are clients of BCI.
According to the investment inventory, it has $124.25 million invested in the tobacco industry. Certainly, there is the direct harm to the customer caused by tobacco but there are documented cases of terrible working conditions for the people who plant, tend, and harvest the tobacco, thousands of them being women and children.
There is but one shareholder in BCI, the provincial government. The minister of finance holds the single share. The CEO of BCI has the status of a deputy minister.
The minister of health spends billions dealing with disease that is directly attributable to tobacco, and just down the hall the minister of finance does nothing to insist on divestment in tobacco stocks.
Teachers and tens of thousands of other public employees contribute monthly to the pension plan and an unethical industry scurries around the various regulations to market a known carcinogen to unsuspecting teenagers.
I’ve tried over the past 20 years to have BCI divest, and at one point was told “no” because the returns on tobacco are so high.
Such madness and politicians wonder why we’re so cynical.
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TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
