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'Carpocalypse' comes to Canada as vehicle shortage hits car rental industry – BNN

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When James Charles-Roberts booked a vehicle back in May, he and his family were looking forward to a two-week holiday in Southern California.

After several attempts to visit Disneyland were thwarted by the COVID-19 pandemic, the November vacation would be a chance for the Victoria, B.C., family to use their theme park tickets before they expire.

However, when Charles-Roberts called in June to move his reservation for a seven passenger Ford Explorer by a day, the cost of the car rental nearly tripled.

“I booked the vehicle for $480 and when I called to make a change the price was $1,286,” he said in an interview. “It was just a minor change so we decided to keep our first reservation.”

The car rental shortage – or “carpocalypse” as its been dubbed in the U.S. – highlights what is expected to be a bumpy economic recovery as supply chain issues throw car rental supply and demand out of whack.

The problem started when nearly all travel was halted at the outset of COVID-19 lockdowns and travel restrictions.

Car rental reservations plummeted, prompting companies to drastically downsize fleets and lay off workers.

“Most if not all car rental operators across the world had to reduce their fleets significantly during the pandemic due to extreme reductions in consumer demand,” said Craig Hirota, vice-president of government relations and member services with the Associated Canadian Car Rental Operators.

“Nobody was travelling for vacation and corporate travel was basically non-existent. It left a lot of unused vehicles sitting on lots.”

Now, the situation has reversed. As the economy reopens and demand returns, a global shortage of semiconductors has crippled vehicle production and caused lengthy delays for new cars and trucks.

“The car rental industry has not been able to resupply their fleets,” Hirota said. “They just can’t get vehicles.”

Enterprise Holdings, the U.S. parent company of Enterprise Rent-A-Car, National Car Rental and Alamo Rent A Car, said the chip shortage “has impacted new vehicle availability and deliveries across the industry at a time when demand is already high.”

The company added in an emailed statement that it’s “working hard to secure additional vehicles to meet the increasing travel demand and support customers’ broader transportation needs.”

In the meantime, car rental operators are jacking up rates amid the tight supply and increasing demand.

“I think there’s some price-gouging going on for sure,” Charles-Roberts said of his experience trying to change his Los Angeles airport vehicle reservation.

The industry-wide car rental crunch is already in full force in the United States, where stories are emerging of tourists renting U-Haul moving vans or private vehicles from locals to get around.

The problem is expected to worsen in Canada this summer, especially in regions that rely heavily on tourism.

Many airport locations in East Coast cities like Halifax, Charlottetown and St. John’s are nearly sold out on weekends this summer.

“The impact is being felt everywhere – at least in hot tourism spots across Canada and the U.S.,” Gary Howard, senior vice-president of marketing and communications with CAA Atlantic, said in an email.

“Most of the fleets are leased so during the high point of COVID, fleets were shrinking,” he said. “Now it is coming back but the car rental companies cannot get enough vehicles back in the fleets.”

While the car rental shortage is expected to be felt more acutely in tourism destinations, prices are up across the country.

Hamilton resident Allyson Rowley said she often rents cars for long-distance travel and to visit family.

In 2019, she said she usually paid about $30 a day, an amount that climbed to about $40 in 2020. But Rowley said she just booked a car for two weeks in August, and the price was $61.52 a day.

“The cost has doubled since before the pandemic,” she said. “I’ve made an ethical and financial choice to not own a car as I mostly walk and bike and only rent a car when I need one, but it’s becoming unaffordable.”

For travellers hoping to rent a car this summer, experts say it’s critical to book early, search beyond airport locations and be prepared to pay more than usual.

It may also require alternatives to car rentals such as car sharing or public transportation as they say the shortage isn’t expected to ease up any time soon.

“If you’re planning travel, we encourage you to reserve a vehicle as early as possible,” Enterprise Holdings said. “Providing flexible travel dates and branch pick up locations in your search may help increase your options.”

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Stock market news live updates: Stock turn lower following last week's rebound – Yahoo Canada

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U.S. stocks closed a choppy session lower Monday, weighed down by losses in technology shares, after the major indexes failed to sustain momentum from last week’s rally.

The S&P 500 fell 0.3%, and Dow Jones Industrial Average dipped 60 points, or 0.2% after each benchmark wavered between the red and the green throughout the trading day. The Nasdaq Composite declined 0.9%.

The moves follow a sharp rebound Friday that saw the S&P 500 surge 3% during the session and over 6% for the week, its second-best week this year and its first weekly rise since late May. Still, the benchmark index is on pace for its worst opening six months since 1970.

During the previous session, the Dow rose more than 800 points, or 2.7%, while the Nasdaq increased by more than 3.3%, leading to weekly gains for the indexes of more than 5% and 7%, respectively.

Some Wall Street strategists are hopeful that markets may have found a bottom.

“As bad as [this year] has been for investors, the good news is previous years that were down at least 15% at the midway point to the year saw the final six months higher every single time, with an average return of nearly 24%,” LPL Financial chief market strategist Ryan Detrick said in a note last week.

J.P. Morgan strategist Marko Kolanovic also predicted that U.S. equities may climb as much as 7% this week as investors rebalance portfolios amid the end of the month, second quarter, and first half of the year.

While sentiment on Wall Street appears optimistic, investors are in for a bevy of key economic reports and earnings that may sway markets this week and put hopes of a comeback to the test.

Quarterly results from Nike (NKE) and Micron (MU) will be closely watched for signs of rising inventories and slowing orders like Target and some other retailers have warned about recently, which may renew worries of an economic slowdown among Corporate America.

Traders also face a fairly loaded economic calendar this week, with the latest read on core PCE inflation – the Federal Reserve’s preferred measure of consumer prices, the Conference Board’s consumer sentiment survey, and manufacturing and housing reports due out through Friday.

A trader works on the floor of the New York Stock Exchange NYSE in New York, the United States, June 16, 2022. U.S. stocks fell sharply on Thursday as steep sell-off continued on Wall Street amid rising recession fears. (Photo by Michael Nagle/Xinhua via Getty Images)A trader works on the floor of the New York Stock Exchange NYSE in New York, the United States, June 16, 2022. U.S. stocks fell sharply on Thursday as steep sell-off continued on Wall Street amid rising recession fears. (Photo by Michael Nagle/Xinhua via Getty Images)

A trader works on the floor of the New York Stock Exchange NYSE in New York, the United States, June 16, 2022. U.S. stocks fell sharply on Thursday as steep sell-off continued on Wall Street amid rising recession fears. (Photo by Michael Nagle/Xinhua via Getty Images)

On the move

  • Robinhood Markets (HOOD)‘s stock surged 14% to close at $9.12 per share following a report from Bloomberg that cryptocurrency exchange FTX is considering a deal to acquire digital trading platform. Earlier in the day, Robinhood was in the spotlight after Goldman Sachs upgraded the brokerage to Neutral, about two months after the bank downgraded shares to Sell.

  • Coinbase (COIN) shares plunged nearly 10.8% to $55.96 after analysts at Goldman Sachs on Monday downgraded the cryptocurrency exchange to Sell from Neutral and slashed their price target on the stock to $45 from $70. Goldman also noted that while Coinbase recently announced it would cut 18% of staff, these layoffs will not be enough to bring the company’s costs in line with lowered sales.

  • AMC Entertainment (AMC) rallied to cap trading up 13.6% despite a turbulent session for the broader markets. The stock rose amid increased mentions across forums such as Reddit’s WallStreetBets and Stocktwits. AMC was also added to the Russell 1000 Index after an annual rebalancing.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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Man uses Apple Airtags to find stolen Range Rover | CTV News – CTV News Toronto

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An Ontario man whose car was stolen from his driveway in midtown Toronto twice in three months is revealing how he tracked and located his second vehicle.

“It’s pretty scary, but you can’t live your life in fear,” Lorne, whose surname CTV News Toronto has omitted due to safety concerns, said on Monday.

On April 1, his family moved to the Avenue Road and Lawrence Avenue area.

The following day, employees from an electronics company arrived at his house to install televisions. He placed the keys of his Range Rover Autobiography into a faraday box, which is designed to prevent criminals from copying a key fob and gaining access to a vehicle.

However, within minutes of the employees leaving his house, his car was stolen in broad daylight.

“The thieves were able to disable the tracker in my car, put there by the manufacturer,” Lorne said.

Meanwhile, his wallet, along with his kids phones, which were in the car, were thrown out of the vehicle before it was stolen, which Lorne said he believes was a preventive measure to avoid him from tracking the location of his car.

His Range Rover was never recovered.

Thirty days later, he got a new car of the same model, but this time, he placed three Apple AirTag tracking devices inside – one in the glovebox, another in his spare tire in the trunk and a third under his back seat.

While Lorne said he typically parks in his garage, last Wednesday night, he didn’t.

At 8:30 a.m. the next morning, he said his kids ran into his bedroom screaming, ”Daddy, daddy, your car is gone.” 

Right away, he logged into his Find My app and located all three of his AirTags near Manville and Comsock roads in Scarborough, listed as a metal recycling plant. 

After dropping his kids at school, he headed to that location and called the police. With no success reaching an officer, he drove to the 41 Division police station.

Toronto police spokesperson David Hopkinson confirmed to CTV News Toronto that a report of this nature was received by police on Thursday.

“I pressed my panic button and you heard it going off,” Lorne said. “The next day I was told they recovered nine cars.”

Due to an ongoing investigation, police could not comment further on the incident.

This time, however, Lorne said police recovered his vehicle and he anticipates it should be back in his possession soon.

While he said his AirTags worked in this case, he anticipates car thefts will only get increasingly sophisticated.

“It’s not foolproof,” he said.

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Company buying Trump's social media app faces subpoenas – Yahoo Canada Finance

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NEW YORK (AP) — The company planning to buy Donald Trump’s new social media business has disclosed a federal grand jury investigation that it says could impede or even prevent its acquisition of the Truth Social app.

Shares of Digital World Acquisition Corp. dropped almost 10% Monday as the company revealed that it has received subpoenas from a grand jury in New York.

The Justice Department subpoenas follow an ongoing probe by the Securities and Exchange Commission into whether Digital World broke rules by having substantial talks about buying Trump’s company starting early last year before Digital World sold stock to the public for the first time in September, just weeks before its announcement that it would be buying Trump’s company.

Trump’s social media venture launched in February as he seeks a new digital stage to rally his supporters and fight Big Tech limits on speech, a year after he was banned from Twitter, Facebook and YouTube.

The Trump Media & Technology Group — which operates the Truth Social app and was in the process of being acquired by Digital World — said in a statement that it will cooperate with “oversight that supports the SEC’s important mission of protecting retail investors.”

The new probe could make it more difficult for Trump to finance his social media company. The company last year got promises from dozens of investors to pump $1 billion into the company, but it can’t get the cash until the Digital World acquisition is completed.

Stock in Digital World rocketed to more than $100 in October after its deal to buy Trump’s company was announced. The stock closed at $25.16 Monday.

Digital World is a special-purpose acquisition company, or SPAC, part of an investing phenomenon that exploded in popularity over the past two years.

Such “blank-check” companies are empty corporate entities with no operations, only offering investors the promise they will buy a business in the future. As such they are allowed to sell stock to the public quickly without the usual regulatory disclosures and delays, but only if they haven’t already lined up possible acquisition targets.

Digital World said in a regulatory filing Monday that each member of its board of directors has been subpoenaed by the grand jury in the Southern District of New York. Both the grand jury and the SEC are also seeking a number of documents tied to the company and others including a sponsor, ARC Global Investments, and Miami-based venture capital firm Rocket One Capital.

Some of the sought documents involve “due diligence” regarding Trump Media and other potential acquisition targets, as well as communications with Digital World’s underwriter and financial adviser in its initial public offering, according to the SEC disclosure.

Digital World also Monday announced the resignation of one of its board members, Bruce Garelick, a chief strategy officer at Rocket One.

The Associated Press

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