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Canadians will make and lose money amid the coronavirus outbreak: expert – Global News

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The effects of COVID-19 have had a negative impact on daily life, and that includes our finances.

While there is some good news for spenders, Canadian financial expert Preet Banerjee says, it is bad news for others. 

As a result of the outbreak, people are being encouraged to spend more money, as interest rates have dropped, he said. This comes after the Bank of Canada cut half a percentage point from its standard interest rate on March 4 in an effort to shore up the economy.

READ MORE: Morneau insists economy can handle coronavirus as economist urges fiscal caution

“They’ve taken this measure because they see that economic activity around the world might be depressed, as you have all these measures taken to keep people inside, [which] means they spend less money,” Banerjee told hosts on The Morning Show.

“They want to stimulate the economy just to combat that.”

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What does this mean for mortgages?

Whether the lowered interest rates will have an effect on you depends on the type of mortgage you have, Banerjee said.

With a fixed-rate mortgage, he said, the interest rate will not change because it was set for the duration of the term. This means you won’t be paying any more or less.






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Financial expert Dwayne Henne on the coronavirus effects on the markets


Financial expert Dwayne Henne on the coronavirus effects on the markets

But if you have a variable-rate mortgage, interest rates may change depending on the type.

For a traditional variable-rate mortgage, the interest rates change with the market, but the monthly payments stay the same. With an adjustable-rate mortgage, however, the monthly payments can change when the interest rate changes.

Either way, this is a good time to speak with your financial adviser.

What does this mean for homebuyers?

If you are looking to buy a house right now, Banerjee said to be careful that you don’t spend more than you can actually afford.

With the decrease in interest rates, it means that people can borrow more money than they could have a week ago.”

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While money may be cheaper to borrow, he said, there is growing concern about a global economic slowdown. This means there is a potential for job loss or cutting back on hours at work.

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Banerjee added new homebuyers should be safe and have an emergency fund.

“Make sure that not all of your income is spent towards housing and living your lifestyle,” he said. “Have a bit of a cushion as well.”

READ MORE: 3 tips that could save you thousands on your mortgage, as interest rates rise

For savers, on the other hand, a lower interest rate is bad news because it also means a lower rate of return.

Bank accounts such as a high-interest savings account have high interest rates for a long time. But whatever interest rate you have, Banerjee said, it may be a bit lower right now amid the novel coronavirus outbreak.

If your savings account, for example, used to pay two per cent a year and you had $1,000 sitting in the account all year, you would earn $20 in interest by the end of the year. If the interest rate goes down to one per cent, you would make $10.






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Stock markets plunge on coronavirus fears and oil price wars


Stock markets plunge on coronavirus fears and oil price wars

Gas prices

Another positive side for consumers is cheaper gas prices. Unfortunately, it also means more economic pain for oil-censored regions like Alberta.

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As the outbreak continues, demand for oil across the globe has dropped, Allison Mac, a petroleum analyst at GasBuddy, previously told Global News.

“When you’re seeing a country like China, which is the second in demand for oil, basically locked down, there’s not a lot of gasoline being used in that country,” she said. “And because of that, there’s really no need for the oil.”

Gas prices began to “trickle down” because of the decrease in demand, Mac said.

READ MORE: Coronavirus — How is the COVID-19 outbreak affecting gas prices in Canada?

— With files from Global News’ Hannah Jackson

amanda.pope@globalnews.ca

© 2020 Global News, a division of Corus Entertainment Inc.

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Teen smoking and other tobacco use drop to lowest level in 25 years, CDC reports

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NEW YORK (AP) — Teen smoking hit an all-time low in the U.S. this year, part of a big drop in the youth use of tobacco overall, the government reported Thursday.

There was a 20% drop in the estimated number of middle and high school students who recently used at least one tobacco product, including cigarettes, electronic cigarettes, nicotine pouches and hookahs. The number went from 2.8 million last year to 2.25 million this year — the lowest since the Centers for Disease Control and Prevention’s key survey began in 1999.

“Reaching a 25-year low for youth tobacco product use is an extraordinary milestone for public health,” said Deirdre Lawrence Kittner, director of CDC’s Office on Smoking and Health, in a statement. However, “our mission is far from complete.”

A previously reported drop in vaping largely explains the overall decline in tobacco use from 10% to about 8% of students, health officials said.

The youth e-cigarette rate fell to under 6% this year, down from 7.7% last year — the lowest at any point in the last decade. E-cigarettes are the most commonly used tobacco products among teens, followed by nicotine pouches.

Use of other products has been dropping, too.

Twenty-five years ago, nearly 30% of high school students smoked. This year, it was just 1.7%, down from the 1.9%. That one-year decline is so small it is not considered statistically significant, but marks the lowest since the survey began 25 years ago. The middle school rate also is at its lowest mark.

Recent use of hookahs also dropped, from 1.1% to 0.7%.

The results come from an annual CDC survey, which included nearly 30,000 middle and high school students at 283 schools. The response rate this year was about 33%.

Officials attribute the declines to a number of measures, ranging from price increases and public health education campaigns to age restrictions and more aggressive enforcement against retailers and manufacturers selling products to kids.

Among high school students, use of any tobacco product dropped to 10%, from nearly 13% and e-cigarette use dipped under 8%, from 10%. But there was no change reported for middle school students, who less commonly vape or smoke or use other products,

Current use of tobacco fell among girls and Hispanic students, but rose among American Indian or Alaska Native students. And current use of nicotine pouches increased among white kids.

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The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group. The AP is solely responsible for all content.

The Canadian Press. All rights reserved.

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Alabama man arrested in SEC social media account hack that led the price of bitcoin to spike

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WASHINGTON (AP) — An Alabama man was arrested Thursday for his alleged role in the January hack of a U.S. Securities and Exchange Commission social media account that led the price of bitcoin to spike, the Justice Department said.

Eric Council Jr., 25, of Athens, is accused of helping to break into the SEC’s account on X, formerly known as Twitter, allowing the hackers to prematurely announce the approval of long-awaited bitcoin exchange-traded funds.

The price of bitcoin briefly spiked more than $1,000 after the post claimed “The SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.”

But soon after the initial post appeared, SEC Chairman Gary Gensler said on his personal account that the SEC’s account was compromised. “The SEC has not approved the listing and trading of spot bitcoin exchange-traded products,” Gensler wrote, calling the post unauthorized without providing further explanation.

Authorities say Council carried out what’s known as a “SIM swap,” using a fake ID to impersonate someone with access to the SEC’s X account and convince a cellphone store to give him a SIM card linked to the person’s phone. Council was able to take over the person’s cellphone number and get access codes to the SEC’s X account, which he shared with others who broke into the account and sent the post, the Justice Department says.

Prosecutors say after Council returned the iPhone he used for the SIM swap, his online searches included: “What are the signs that you are under investigation by law enforcement or the FBI even if you have not been contacted by them.”

An email seeking comment was sent Thursday to an attorney for Council, who is charged in Washington’s federal court with conspiracy to commit aggravated identity theft and access device fraud.

The price of bitcoin swung from about $46,730 to just below $48,000 after the unauthorized post hit on Jan. 9 and then dropped to around $45,200 after the SEC’s denial. The SEC officially approved the first exchange-traded funds that hold bitcoin the following day.

The Canadian Press. All rights reserved.

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Tech firms remove social media accounts of a Russian drone factory after an AP investigation

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Google, Meta and TikTok have removed social media accounts belonging to an industrial plant in Russia’s Tatarstan region aimed at recruiting young foreign women to make drones for Moscow’s war in Ukraine.

Posts on YouTube, Facebook, Instagram and TikTok were taken down following an investigation by The Associated Press published Oct. 10 that detailed working conditions in the drone factory in the Alabuga Special Economic Zone, which is under U.S. and British sanctions.

Videos and other posts on the social media platforms promised the young women, who are largely from Africa, a free plane ticket to Russia and a salary of more than $500 a month following their recruitment via the program called “Alabuga Start.”

But instead of a work-study program in areas like hospitality and catering, some of them said they learned only arriving in the Tatarstan region that they would be toiling in a factory to make weapons of war, assembling thousands of Iranian-designed attack drones to be launched into Ukraine.

In interviews with AP, some of the women who worked in the complex complained of long hours under constant surveillance, of broken promises about wages and areas of study, and of working with caustic chemicals that left their skin pockmarked and itching. AP did not identify them by name or nationality out of concern for their safety.

The tech companies also removed accounts for Alabuga Polytechnic, a vocational boarding school for Russians aged 16-18 and Central Asians aged 18-22 that bills its graduates as experts in drone production.

The accounts collectively had at least 158,344 followers while one page on TikTok had more than a million likes.

In a statement, YouTube said its parent company Google is committed to sanctions and trade compliance and “after review and consistent with our policies, we terminated channels associated with Alabuga Special Economic Zone.”

Meta said it removed accounts on Facebook and Instagram that “violate our policies.” The company said it was committed to complying with sanctions laws and said it recognized that human exploitation is a serious problem which required a multifaceted approach, including at Meta.

It said it had teams dedicated to anti-trafficking efforts and aimed to remove those seeking to abuse its platforms.

TikTok said it removed videos and accounts which violated its community guidelines, which state it does not allow content that is used for the recruitment of victims, coordination of their transport, and their exploitation using force, fraud, coercion, or deception.

The women aged 18-22 were recruited to fill an urgent labor shortage in wartime Russia. They are from places like Uganda, Rwanda, Kenya, South Sudan, Sierra Leone and Nigeria, as well as the South Asian country of Sri Lanka. The drive also is expanding to elsewhere in Asia as well as Latin America.

Accounts affiliated to Alabuga with tens of thousands of followers are still accessible on Telegram, which did not reply to a request for comment. The plant’s management also did not respond to AP.

The Alabuga Start recruiting drive used a robust social media campaign of slickly edited videos with upbeat music that show African women smiling while cleaning floors, wearing hard hats while directing cranes, and donning protective equipment to apply paint or chemicals.

Videos also showed them enjoying Tatarstan’s cultural sites or playing sports. None of the videos made it clear the women would be working in a drone manufacturing complex.

Online, Alabuga promoted visits to the industrial area by foreign dignitaries, including some from Brazil, Sri Lanka and Burkina Faso.

In a since-deleted Instagram post, a Turkish diplomat who visited the plant had compared Alabuga Polytechnic to colleges in Turkey and pronounced it “much more developed and high-tech.”

According to Russian investigative outlets Protokol and Razvorot, some pupils at Alabuga Polytechnic are as young as 15 and have complained of poor working conditions.

Videos previously on the platforms showed the vocational school students in team-building exercises such as “military-patriotic” paintball matches and recreating historic Soviet battles while wearing camouflage.

Last month, Alabuga Start said on Telegram its “audience has grown significantly!”

That could be due to its hiring of influencers, who promoted the site on TikTok and Instagram as an easy way for young women to make money after leaving school.

TikTok removed two videos promoting Alabuga after publication of the AP investigation.

Experts told AP that about 90% of the women recruited via the Alabuga Start program work in drone manufacturing.

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