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Euro economy shrank at end of 2020 under pandemic's weight – Yahoo Canada Finance

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Navalny in Court Facing Jail Term as Putin Battles Dissent

(Bloomberg) — A Moscow court is deciding whether to jail Russian opposition leader Alexey Navalny for as long as 3 1/2 years, as President Vladimir Putin seeks to crush resurgent protests against his rule.The district court is to rule Tuesday on demands by penal authorities and prosecutors that Navalny, 44, serve the term in prison instead of the suspended sentence he received for a 2014 fraud conviction, for alleged violations of his probation. Security outside the court was heavy, with riot police detaining about 100 protesters around the court as Navalny’s supporters gathered outside, according to monitoring group OVD-Info.A prison van brought the Kremlin critic to the court from the Moscow jail where he has been held. Navalny stood in the glass defendant’s cage in the courtroom, clad in a blue sweater and jeans. He joked with his wife, Yulia, sitting in the front row, about seeing TV reports of her detentions at protests since his arrest. “I’m proud of you,” he said.The activist was detained in mid-January as he returned from Germany, where he recovered from a near-fatal nerve-agent attack that he and Western governments blamed on Putin’s security services. The Kremlin denies responsibility. A prison term could sideline Navalny but risks escalating the confrontation between the authorities and opposition protesters.Western AppealsPolice detained thousands at rallies in support of Navalny in dozens of cities nationwide over the last two weekends, some of the largest anti-Kremlin protests in years.The U.S. and the European Union have called on Russia to release Navalny and western diplomats attended Tuesday’s hearing. U.S. Secretary of State Antony Blinken called his detention “profoundly disturbing” in an interview Sunday with MSNBC’s “Andrea Mitchell Reports.” The EU’s top foreign policy official, Josep Borrell, has said he’ll raise the case when he visits Moscow for talks this week with Russian Foreign Minister Sergei Lavrov.Western pressure on the Kremlin has so far been limited mainly to rhetoric, and the ruble has slipped only modestly against the dollar in recent weeks. “This case shouldn’t lead to a rise in risks of large-scale, harsh sanctions on the Russian market,” said Sofya Donets, chief economist at Renaissance Capital. In neighboring Belarus, for example, Western governments responded to a violent crackdown on protesters with sanctions targeted on individuals, not the country as a whole, she added.Riot police were accused of using electric-shock devices against some people at the latest protests on Sunday amid allegations of a particularly harsh response. There were 5,754 detentions, adding to nearly 3,600 at Jan. 23 protests, according to OVD-Info.Navalny received the suspended sentence in a fraud trial involving the Russian branch of French cosmetics company Yves Rocher that also led to a 3 1/2 year jail term for his younger brother, Oleg. Both men denied wrongdoing, and the European Court of Human Rights has called the case politically motivated.Defense attorneys cited that ruling and argued that Navalny was recuperating in Germany last year and couldn’t check in with probation authorities. The prison service contended that he had breached the terms of the sentence before going to Germany and asked for a 3 1/2 year prison term.“You said repeatedly that you didn’t know where I was but the president of the country on his direct line said that thanks to him, I was getting treatment. Didn’t you hear that, too?” Navalny asked the prison service representative.Putin isn’t following the hearing and is preparing for a meeting with teachers scheduled for Tuesday, Kremlin spokesman Dmitry Peskov said.In a separate case, Navalny also faces possible new fraud charges that could carry an additional 10-year punishment.Putin, Poison and the Importance of Alexey Navalny: QuickTakePutin, 68, has been in power since 2000, the longest rule since Soviet dictator Josef Stalin. In July, he pushed through constitutional changes that would allow him to stay as president until 2036. Last year his support fell to a record low amid the Covid-19 downturn, and the continuing slide in incomes is weighing on the Russian leader’s popularity, pollsters say.Gross domestic product contracted 3.1% last year, the biggest slump since 2009, the Federal Statistics Service reported Monday. Still, Russia suffered a smaller decline than most major economies after the government opted not to reimpose a lockdown in the second half of the year.Navalny raised the focus on officials’ opulent lifestyles in a video released after his arrest that got more than 100 million views and alleged that Putin owns a giant $1.3 billion Black Sea palace. Putin dismissed the claim and a billionaire ally, Arkady Rotenberg, said last week that he is the beneficial owner of the residence.While Putin has survived several past outbursts of anti-Kremlin protests, the opposition is digging in for a long-term struggle ahead of 2024, when he must decide whether to seek a fifth presidential term. Backers of Navalny say he’ll become a potent symbol of resistance behind bars.(Updates with prison service seeking 3 1/2-year sentence from 2nd paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

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Energy stocks help lift S&P/TSX composite, U.S. stock markets also up

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TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.

The S&P/TSX composite index was up 34.91 points at 23,736.98.

In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.

The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.

The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.

The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.

This report by The Canadian Press was first published Sept. 17, 2024.

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

The Canadian Press. All rights reserved.

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Canada’s inflation rate hits 2% target, reaches lowest level in more than three years

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OTTAWA – Canada’s inflation rate fell to two per cent last month, finally hitting the Bank of Canada’s target after a tumultuous battle with skyrocketing price growth.

The annual inflation rate fell from 2.5 per cent in July to reach the lowest level since February 2021.

Statistics Canada’s consumer price index report on Tuesday attributed the slowdown in part to lower gasoline prices.

Clothing and footwear prices also decreased on a month-over-month basis, marking the first decline in the month of August since 1971 as retailers offered larger discounts to entice shoppers amid slowing demand.

The Bank of Canada’s preferred core measures of inflation, which strip out volatility in prices, also edged down in August.

The marked slowdown in price growth last month was steeper than the 2.1 per cent annual increase forecasters were expecting ahead of Tuesday’s release and will likely spark speculation of a larger interest rate cut next month from the Bank of Canada.

“Inflation remains unthreatening and the Bank of Canada should now focus on trying to stimulate the economy and halting the upward climb in the unemployment rate,” wrote CIBC senior economist Andrew Grantham.

Benjamin Reitzes, managing director of Canadian rates and macro strategist at BMO, said Tuesday’s figures “tilt the scales” slightly in favour of more aggressive cuts, though he noted the Bank of Canada will have one more inflation reading before its October rate announcement.

“If we get another big downside surprise, calls for a 50 basis-point cut will only grow louder,” wrote Reitzes in a client note.

The central bank began rapidly hiking interest rates in March 2022 in response to runaway inflation, which peaked at a whopping 8.1 per cent that summer.

The central bank increased its key lending rate to five per cent and held it at that level until June 2024, when it delivered its first rate cut in four years.

A combination of recovered global supply chains and high interest rates have helped cool price growth in Canada and around the world.

Bank of Canada governor Tiff Macklem recently signalled that the central bank is ready to increase the size of its interest rate cuts, if inflation or the economy slow by more than expected.

Its key lending rate currently stands at 4.25 per cent.

CIBC is forecasting the central bank will cut its key rate by two percentage points between now and the middle of next year.

The U.S. Federal Reserve is also expected on Wednesday to deliver its first interest rate cut in four years.

This report by The Canadian Press was first published Sept. 17, 2024.

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Federal money and sales taxes help pump up New Brunswick budget surplus

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FREDERICTON – New Brunswick‘s finance minister says the province recorded a surplus of $500.8 million for the fiscal year that ended in March.

Ernie Steeves says the amount — more than 10 times higher than the province’s original $40.3-million budget projection for the 2023-24 fiscal year — was largely the result of a strong economy and population growth.

The report of a big surplus comes as the province prepares for an election campaign, which will officially start on Thursday and end with a vote on Oct. 21.

Steeves says growth of the surplus was fed by revenue from the Harmonized Sales Tax and federal money, especially for health-care funding.

Progressive Conservative Premier Blaine Higgs has promised to reduce the HST by two percentage points to 13 per cent if the party is elected to govern next month.

Meanwhile, the province’s net debt, according to the audited consolidated financial statements, has dropped from $12.3 billion in 2022-23 to $11.8 billion in the most recent fiscal year.

Liberal critic René Legacy says having a stronger balance sheet does not eliminate issues in health care, housing and education.

This report by The Canadian Press was first published Sept. 16, 2024.

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