OTTAWA, Oct 6 (Reuters) – The Bank of Canada made clear on Thursday it will not yet be pivoting away from its rapid pace of interest rate increases, with Governor Tiff Macklem saying there were no signs underlying inflation might be easing.
Macklem, in a speech to a business audience in Halifax, said domestic sources of inflation have not eased and are becoming more important, while global pressures are showing signs of cooling.
Canada’s headline inflation rate dropped to 7.0% in August, with core inflation running at about 5%, which Macklem said was too high.
“We have yet to see clear evidence that underlying inflation has come down. When combined with still-elevated near-term inflation expectations, the clear implication is that further interest rate increases are warranted,” he said.
“Simply put, there is more to be done. We will need additional information before we consider moving to a more finely balanced decision-by-decision approach.”
Macklem added that while forward-looking indicators suggest Canada’s economy is starting to slow, labor markets remain tight and demand is still outstripping supply.
That message swung money market bets more heavily toward a 50-bp increase at the Bank of Canada’s next decision on Oct 26. The central bank has so far this year hiked its policy rate by 300 basis points to 3.25%, a 14-year high.
Economists said the tone was clear even though some data in recent weeks that could have shifted the central bank to a less hawkish stance.
“Don’t expect the Bank of Canada to shy away from outsized interest rate increases any time soon,” said Royce Mendes, head of macro strategy at Desjardins Group.
Macklem later said whether the central bank can cool the economy enough to tame inflation without triggering a recession will depend, in part, on how sticky price increases are in Canada.
“There is a path to a soft landing, but it is a narrow path and there are risks,” he said, answering audience questions.
Macklem earlier said the central bank would watch core measures of inflation closely “for clear evidence of a turning point,” particularly as attention shifts to domestic price pressure.
The bank’s focus will be on the two measures known as CPI-trim and CPI-median, he explained, noting CPI-common was becoming more difficult to use due to large historic revisions.
Reuters reported this week that economists and markets were scrambling for a reliable measure of underlying inflation as those same large and frequent revisions have dented the credibility of CPI-common.
“We are reassessing CPI-common,” Macklem said.
He also gave some details on the rate decision summaries the central bank will start publishing next year, saying they would include key points of focus in the deliberations and options discussed, along with clarity around how governing council reached a consensus decision.
“We’ve been doing this to some extent in the (MPR) opening statement. The summary of deliberations will be an opportunity to do this in a more fulsome way and hopefully that can add transparency to our thinking,” he said.
The Canadian dollar was trading about 1% lower at 1.3750 to the greenback, or 72.73 U.S. cents.
Reporting by Julie Gordon and David Ljunggren in Ottawa; Additional reporting by Fergal Smith in Toronto; Editing by Mark Porter, Andrea Ricci and David Gregorio
Our Standards: The Thomson Reuters Trust Principles.
When Job Hunting Your Image is Everything (Part 1)
This column is the first of a 2-part series discussing an aspect that most job seekers ignore, the image they project to employers.
Part 1: Getting noticed is your image’s job.
“Image is everything. You don’t spare any expense to create the right image. And word of mouth is critical. Once you get a good reputation, momentum will carry you.”
Four questions you should ask yourself as a job seeker:
- Who am I?
- What do I do, or what would I like to do?
- Why does it matter?
- How do I want others to perceive me?
In answering these questions with definitive answers, you’ll become more strategic regarding how you present yourself (physically and verbally), which influences the impression people have of you.
“Image” is one of the oldest forms of nonverbal communication used to attract others. A person’s appearance is often used to judge their integrity, credibility and level of professionalism. The right image can open doors, draw attention to strengths and qualities, and open doors to life-changing possibilities.
Since first impressions are everlasting, my first rule when job searching is: Image is everything.
(My second rule: Don’t look for a job. Instead, look for where you’ll be accepted. Think: “I’m not looking for a job; I’m looking for my tribe!”)
The notion that your image significantly impacts your career—actually, your image influences all aspects of your life—makes many uncomfortable. The majority of people would rather be heads-down, focusing on their work, with their fingers crossed that their work alone will propel them forward, not their image. However, as creatures of our environment, we form perceptions based on what we see. By being aware of this and how your image is directly correlated with how you’re perceived, you can craft an image that attracts opportunities rather than repels them.
People don’t have much imagination when it comes to other people. What you show them—what they see—is the only thing they’ll first know about you, which we all learn at an early age; thus, why “What I show is what they’ll know” is ground-zero social guidance. Hence, we have a fashion industry, sexy sports car models, plastic surgery, Invisalign, and multiple brands to self-identify with for essentially the same product (e.g., soft drinks, coffee, jeans, etc.).
The constant effort to create an image in the hopes of being noticed and accepted is why for many people, “approval nods” are essential to their self-esteem. Consequently, when employers don’t give approval nods, their egos and self-confidence suffer badly, and why heartbreak is a frequent occurrence when conducting a job search.
A stranger forms a first impression of you in about seven seconds. In today’s increasingly open and interconnected world, where employers can easily research you to determine if you’re interview-worthy, your overall presentation is increasingly important to your job search and career success.
Then there’s the initial meeting when the interviewer’s opinion of you will determine whether you advance in the hiring process. As much as it may offend you, your interviewer’s opinion of you will be based on your image.
When I was starting out, still trying to reach the first rung of the ladder, an advertising executive gave me this advice: “Create the image you want the world to see and constantly work at living up to it.” Then to emphasize his point, he mentioned Madonna, Norman Mailer, Tupac Shakur, and Mother Theresa as examples.
Your what I call “pre-screen image,” which includes your resume, LinkedIn profile, and other digital footprints, is what gets you in the door—in front of those who’ll judge your suitability for the job and your fit with the company’s culture. In other words, are you one of them? This “Are you one of us?” judgment is why I view employers as exclusive clubs. Afterward, once you’ve been selected for an interview, you must look at “the part.”
Forget facts and logic, especially at the initial stages of the hiring process. Recent research reveals that a person’s image and emotional projections far outweigh facts and logical conclusions about them.
According to studies, people understand images faster than words and remember them for longer periods. Whenever there is a discrepancy between what we see and hear, our brains tend to believe what we see. A potent image speaks to us on a symbolic level, feeding us information by intuition and association.
TRUTH BOMB: Seeing is believing.
Before you return to your job search, ask yourself this question: What does my image say about who I am? It’s common for me to hear a job seeker tell me they are this and that… blah, blah, blah, yet what I see contradicts what they’re trying to convince me to believe about them. In other words, their image makes it hard for me to believe what they’re saying about themselves.
Does your image work in your favor or against you?
In my next column, I’ll discuss the second hardest part of your image’s job, making employers fall in love with you.
Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers advice on searching for a job. You can send Nick your questions at firstname.lastname@example.org.
‘More than disappointing’: Air Canada to stop direct flights to Calgary from Regina, Saskatoon
Saskatchewan residents looking to fly direct to Alberta’s largest city will soon have one less airline with which to do so.
CBC News has confirmed that Air Canada will be cancelling direct flights from the Saskatoon and Regina airports to Calgary in mid-January.
“It is a bit disappointing for the airport and the community,” said C.J. Dushinski, the Saskatoon Airport Authority’s vice president of business development and service quality.
“It certainly limits the amount of options available for travellers that are looking to get to Calgary or looking to travel beyond the connect.”
Dushinski and Justin Reves, the Regina airport’s manager of customer experience and marketing, told CBC News that Air Canada informed their respective airports that direct service to Calgary will end Jan. 16.
The Saskatoon airport authority hopes the airline will add additional seats to other hubs, such as Toronto and Vancouver, and that WestJet will add seats or service to Calgary, Dushinski said.
The Regina airport has contacted other airlines, including WestJet, about potential service, Reves said.
“Calgary is a huge market for the city of Regina,” he said.
“A lot of people, friends, family, business connections [are] there, and it’s primarily going to be disappointing for Air Canada customers who are used to being able to fly that route.”
Air Canada only offered one direct flight per day from Regina to Calgary, he added, in comparison with West Jet, which currently runs several flights daily.
Focus on rebuilding main hubs of Toronto, Vancouver and Montreal, Air Canada says
People flying out of Saskatoon and Regina will continue to see flights to and from Toronto and Vancouver, an Air Canada spokesperson told CBC News.
Saskatchewan residents will still be able to fly to Calgary, but only via other destinations, such as Vancouver.
Public health guidelines aimed to stymie the potential spread of COVID-19 affected all travel. Airports and airlines hemorrhaged money as a result of lower passenger traffic.
Air Canada has made changes to various routes to and from Calgary as it rebuilds from the impact of the pandemic, which means examining the network and where it would be most productive to deploy resources, the spokesperson said.
The airline has decided to focus on rebuilding its main hubs: Toronto, Vancouver and Montreal, they said.
The announcement is a savvy business move, said Karl Moore, an associate professor with McGill University’s faculty of management in Montreal. He has previously consulted for Air Canada, among other companies.
Air Canada is looking at load levels — how many people fill certain flights and how much they pay — to see which flights are unprofitable, or which routes or hubs could be more profitable, Moore explained.
“They spend a lot of time thinking about that and that’s what good business people do,” Moore said, noting that WestJet made a similar move by cutting service on the east coast.
In an open letter to Air Canada, Economic Development Regina also expressed their concern and disappointment about the airline’s move to cancel direct flights from Saskatchewan to Calgary.
The suspension of these routes triples the travel time between Saskatchewan’s capital and Calgary, said Chris Lane, president and CEO of Economic Development Regina.
His organization is asking Air Canada to reconsider their decision and to commit to an expansion of their service to Regina, while looking at the city’s role when it comes to supplying “sustainable food and fertilizer” to the world, said Lane.
“As one of Canada’s fastest growing economies and population areas, the need for connectivity and the opportunity it presents for airlines is as necessary as it is mutually beneficial,” he said in the letter.
“[Regina’s] population will grow by almost 10 per cent in the next five years. Calgary’s numbers are similar and so are Saskatoon’s. That the flag carrier airline of Canada would choose to suspend direct connectivity between these regions at this time is more than disappointing; it is ill-considered.”
Theranos exec Sunny Balwani sentenced to 13 years in prison for defrauding patients and investors
The former COO of disgraced blood testing startup Theranos, Ramesh “Sunny” Balwani was sentenced to 155 months, or about 13 years, in prison, and three years of probation. After a three-month trial, Balwani was found guilty on all 12 criminal charges, ranging from defrauding patients and investors to conspiring to commit fraud. Theranos CEO Elizabeth Holmes was convicted on four of these charges and was sentenced to 11.25 years in prison last month.
Despite the disparate outcomes from the two separate juries in two individual trials, Judge Ed Davila calculated Holmes’ and Balwani’s sentencing ranges to be exactly the same: 135 to 168 months, or 11.25 to 14 years. In both cases, prosecutor Jeff Schenk countered by asking for 15 years.
Balwani’s lawyers attempted to argue that he should get a more lenient sentence than Holmes, as he was not CEO.
“He’s not Ms. Holmes. He did not pursue fame and fortune,” said Balwani’s attorney Jeffrey Coopersmith.
Judge Davila even noted that the court saw another side of Balwani when they were told about his charitable giving, some of which occurred after Theranos. Yet Balwani still received a severe sentence of 13 years.
Holmes and Balwani were supposed to be tried for fraud together, but the former CEO filed for a separate trial, stating that Balwani, who is 20 years her senior, had emotionally and sexually abused her during their long romantic relationship. Though the court was not ruling on those allegations, the judge granted the request.
Throughout the trial, Balwani’s lawyers attempted to make the case that even though he was an investor and executive at Theranos, he was not involved in key decision-making. The defense failed to argue for his innocence, though. In one piece of evidence, the jury was presented a text from Balwani to Holmes that read, “I am responsible for everything at Theranos.”
Balwani’s trial featured the same evidence that indicted Holmes. The prosecution focused on a key piece of evidence relating to Theranos’ relationship with Walgreens. The biotech startup’s faulty technology made its way into 41 Walgreens stores, but unbeknownst to the pharmacy giant, most of the tests were conducted on third-party equipment. Theranos’ own machines couldn’t produce accurate test results, so a lot of patients had blood drawn not with a finger prick but intravenously. So, Walgreens basically spent $140 million in its partnership with Theranos, only for the startup to use the same old tech that was already in use.
Despite claims to the contrary, a Walgreens executive testified that he worked closely with Balwani on the deal. The prosecution also displayed evidence of a text from Balwani to Holmes stating that he deliberately didn’t tell Walgreens that they were using different machines.
For patients that were unlucky enough to have their blood tested with Theranos’ technology, some got wildly inaccurate results that caused significant disruption to their lives. In one case, a mother with a history of miscarriages was wrongly informed that she would have another unsuccessful pregnancy. Another patient, Erin Tompkins, used Theranos for its low costs, got flagged as HIV-positive, and then lived in limbo for three months until she could afford a second blood test. As it turned out, she didn’t actually have HIV. Meanwhile, a patient named Mehrl Ellsworth was given a false cancer diagnosis.
Unlike the jury at Holmes’ trial, the jury at Balwani’s trial held him accountable for defrauding patients, not just investors.
Before the former COO’s sentencing hearing, Balwani’s lawyers filed 40 objections to the probation office’s pre-sentence investigation report, according to tweets from Law 360 reporter Dorothy Atkins, who was present at the hearing. Judge Davila, who also presided over Holmes’ trial, said that only four of those objections were substantive.
“Usually sentencing hearings are morbid regardless of the crime — like watching a car crash where you watch families and lives being destroyed in real time,” Atkins tweeted from the court room. “This one feels more like an accounting class.”
It would certainly not be unprecedented if Balwani decides to appeal this ruling. After Holmes’ own sentencing, the former Theranos CEO told a California federal judge that she would appeal her conviction. She then asked to stay out of custody while her appeal is under consideration, also citing that she is currently pregnant with her second child. As it stands, Holmes’ surrender date is April 27, while Balwani will report to prison on March 15.
When Job Hunting Your Image is Everything (Part 1)
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