adplus-dvertising
Connect with us

Economy

China Defends 5% Goal, Vows Vigorous Effort to Grow Economy – BNN Bloomberg

Published

 on


(Bloomberg) — China’s top economic officials defended the nation’s plan to grow the economy by around 5% this year and hinted at a potential liquidity boost, one day after the ambitious target was met with skepticism by some economists due to a perceived lack of sufficient policy support.

Pan Gongsheng, governor of the People’s Bank of China, said there’s still room to cut the reserve requirement ratio for banks, which would allow lenders to keep smaller reserves and therefore encourage lending. Zheng Shanjie, chairman of the National Development and Reform Commission, struck a confident tone on the country’s growth outlook, saying the GDP goal is a “positive target that can be attained through vigorous effort.”

They took questions at a press briefing on the sidelines of the National People’s Congress in Beijing on Wednesday alongside three other top officials: the finance and commerce chiefs, as well as new top securities regulator Wu Qing.

The officials’ comments were scrutinized by investors seeking details on how President Xi Jinping’s government will repeat last year’s expansion in more challenging circumstances without broad stimulus. Markets were disappointed by the lack of forceful steps announced at the opening of the legislature on Tuesday, with analysts surveyed by Bloomberg ahead of the meeting only expecting the economy to expand by 4.6% in 2024.

Pan’s dovish comments appeared to stoke hopes for further easing by the Chinese central bank. China’s government bonds extended rallies, with the yield on 10-year notes falling to a two-decade low. Economists surveyed by Bloomberg last month forecast a RRR reduction by 25 basis points in the third quarter this year after it was last cut by 0.5 percentage points in February.

Promoting a moderate recovery in prices is an important consideration for the PBOC’s policy making, he said. Pan reiterated the central bank has sufficient monetary policy room and ample tools and noted the dollar’s weakening momentum, which will allow China to loosen its monetary policy without causing more capital flight. He didn’t indicate a time frame for the RRR cut.

Wang Tao, head of Asian economic research at UBS Group AG, called the Chinese leadership’s approach “pragmatic” but added they “won’t do whatever is necessary to meet the 5% target”.

“If there is a threat to the system, to stability in the economy, then they will act,” she said. “The objective is more in terms of macro-stability and facilitating structural transition.”

The joint press briefing was the first time in at least a decade that so many economic chiefs shared a stage for one conference during the legislative session. Previously, officials typically held briefings in smaller groups, except for pandemic years when many skipped such conferences.

Zheng of the NDRC, China’s top economic planning agency, said China’s plan to issue 1 trillion yuan ($139 billion) of ultra-long special central government bonds in 2024 will drive investment and consumption, and that most of the 1 trillion yuan sovereign debt issued in October will be used this year. That issuance in 2023 raised the budget deficit from 3% to 3.8% of GDP, with funds used for disaster relief and construction. 

Both Zheng and Commerce Minister Wang Wentao revealed China’s exports increased about 10% year-on-year in the first two months of 2024, giving that data a day before its official release and after exports last year posted their first annual decline since 2016. 

That was the latest example of officials front-running key data releases, as authorities seek to stabilize the economy and guide the stock market. In January, Premier Li Qiang revealed China’s economy grew around 5.2% in 2023 a day before the official figure was due. That month, Pan disclosed a cut in the reserve requirement ratio about two weeks before it took effect, in a rare move. 

Officials managing China’s massive economy are grappling with record low consumer confidence, falling home prices and an increasingly competitive job market. That’s weighed on consumption and led to a price war among retailers, which has been hampered by weakening overseas demand.

The central bank is expected to deliver more moderate cuts to interest rates this year. The PBOC has used surprise easing steps — such as a record cut to a key mortgage reference rate — to squeeze more value out of its policy actions in recent months.

Finance Minister Lan Fo’an said officials would strengthen coordination with other tools such as monetary, employment and industrial policies. Those comments came after Premier Li’s yearly report to China’s highest-profile annual political meeting kept fiscal stimulus broadly the same as last year, and avoided bold moves to boost consumption or lift a slumping property sector.

He added that China’s local debt risks have been “mitigated holistically” since authorities ramped up efforts to tackle the problem with measures including the issuance of local special refinancing bonds, which reduced the repayment pressure and lowered interest payment burdens, Lan said.

–With assistance from Tom Hancock and Josh Xiao.

(Updates with more details and context throughout)

©2024 Bloomberg L.P.

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Business

A timeline of events in the bread price-fixing scandal

Published

 on

 

Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.

Here’s a timeline of key events in the bread price-fixing case.

Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.

Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.

Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.

Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).

Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.

June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.

Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”

Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.

July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.

Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)

The Canadian Press. All rights reserved.

Source link

Continue Reading

Economy

S&P/TSX composite up more than 250 points, U.S. stock markets also higher

Published

 on

 

TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.

The S&P/TSX composite index was up 254.62 points at 23,847.22.

In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.

The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.

The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.

The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

Source link

Continue Reading

Economy

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

Published

 on

 

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.

Source link

Continue Reading

Trending