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Closure of bus depots part of industry-wide struggle: CEO – BC News – Castanet.net

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Maryanne Titian, 69, says she and her husband John both have diabetes, and he is also waiting on a kidney transplant while she has suffered mild heart attacks.

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The couple uses buses to get to medical appointments at least once a month that are hours away.

Since the closure of several bus depots on Vancouver Island this year, they are often left waiting outside in poor weather conditions for hours.

“It’s hard,” Titian said. “My husband and I are both not feeling well, we get sick really easy.”

“This time of year, it’s windy, it’s raining, it’s snowing in some places,” she said.

The closure of bus depots on Vancouver Island is part of a wider decline in services across Canada that are leaving some vulnerable people at risk.

The largest shift came in 2018, when Greyhound Canada announced it was cancelling service in most of Western Canada, citing plunging demand.

The provincial government stepped in to fill some of the gaps in northern British Columbia, including along the so-called Highway of Tears between Prince George and Prince Rupert.

The service BC Bus North, operated by Pacific Western Transportation, now provides transportation along the route where at least 18 women have gone missing or have been murdered, several of whom were last seen hitchhiking. It also serves Valemount, Dawson Creek, Fort. St. John and Fort Nelson.

A hodgepodge of other companies also entered the void left by Greyhound in parts of Western Canada and northern Ontario but haven’t matched the service provided by Greyhound.

While Greyhound announced it was pulling out of the Island months before the rest of Western Canada, its disappearance still has ripple effects on the local bus businesses, the CEO of one company said.

John Wilson of Wilson Group, which operates much of Vancouver Island’s bus services through its companies Wilson’s Transportation and Tofino Bus, said Greyhound played a key role in bringing passengers and freight from across the country.

“That connectivity across the country has stopped,” Wilson said, adding that apart from internal freight services, the company now almost entirely relies on passenger revenue.

Wilson Group is partnering with companies like Ebus, which has taken up and added stops along Greyhound’s Kelowna-Kamloops route, to try to reconnect the Interior with Vancouver and Vancouver Island, but gaps still remain, he said.

Ride sharing services and the consumer’s own decisions to drive are also affecting the bottom line, he said.

To compensate for declining demand, Wilson closed five bus depots this year in Port Alberni, Courtenay, Tofino, Parksville and Port Hardy, he said.

“Unfortunately, we had to make some tough decisions around closing some stations,” Wilson said.

Passengers are now primarily picked up at the curbside, although Wilson said the company is in discussions with some local businesses to allow passengers to wait inside.

Bus companies across North America are facing similar challenges, he said, and eliminating bricks and mortar operations are one of the ways they can reduce overhead without cutting routes.

While online bookings may not be accessible to many seniors or individuals without credit cards, between 80 and 85 per cent of passengers now book online, reducing the need for ticketing agents, he said.

Wilson said the company’s call centre remains open and he encouraged passengers experiencing barriers to reach out directly, adding the company will do its best to accommodate them.

“We definitely think it’s a small minority,” he said. “At the same time, they need to be looked after and we want to look after them. We’re doing the best we can to maintain the service levels as far as our schedules are concerned by reducing our overhead.

But the other option is to reduce runs, which hurts people even more, I think.”

Back in the Interior, the province agreed to provide the BC Bus North service on an interim basis and federal funding covering half the costs expires at the end of March 2021. BC Transit led a competitive procurement process for service providers on the current routes and the request for proposals closed in August.

The Ministry of Transportation said in a statement that the contract is being finalized and additional information will be available in the coming weeks.

There will be no disruption to the current BC Bus North service, it said.

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Tesla Promises Cheap EVs by 2025 | OilPrice.com – OilPrice.com

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Tesla Promises Cheap EVs by 2025 | OilPrice.com



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Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

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Tesla has promised to start selling cheaper models next year, days after a Reuters report revealed that the company had shelved its plans for an all-new Tesla that would cost only $25,000.

The news that Tesla was scrapping the Model 2 came amid a drop in sales and profits, and a decision to slash a tenth of the company’s global workforce. Reuters also noted increased competition from Chinese EV makers.

Tesla’s deliveries slumped in the first quarter for the first annual drop since the start of the pandemic in 2020, missing analyst forecasts by a mile in a sign that even price cuts haven’t been able to stave off an increasingly heated competition on the EV market.

Profits dropped by 50%, disappointing investors and leading to a slump in the company’s share prices, which made any good news urgently needed. Tesla delivered: it said it would bring forward the date for the release of new, lower-cost models. These would be produced on its existing platform and rolled out in the second half of 2025, per the BBC.

Reuters cited the company as warning that this change of plans could “result in achieving less cost reduction than previously expected,” however. This suggests the price tag of the new models is unlikely to be as small as the $25,000 promised for the Model 2.

The decision is based on a substantially reduced risk appetite in Tesla’s management, likely affected by the recent financial results and the intensifying competition with Chinese EV makers. Shelving the Model 2 and opting instead for cars to be produced on existing manufacturing lines is the safer move in these “uncertain times”, per the company.

Tesla is also cutting prices, as many other EV makers are doing amid a palpable decline in sales in key markets such as Europe, where the phaseout of subsidies has hit demand for EVs seriously. The cut is of about $2,000 on all models that Tesla currently sells.

By Charles Kennedy for Oilprice.com

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Why the Bank of Canada decided to hold interest rates in April – Financial Post

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Divisions within the Bank of Canada over the timing of a much-anticipated cut to its key overnight interest rate stem from concerns of some members of the central bank’s governing council that progress on taming inflation could stall in the face of stronger domestic demand — or even pick up again in the event of “new surprises.”

“Some members emphasized that, with the economy performing well, the risk had diminished that restrictive monetary policy would slow the economy more than necessary to return inflation to target,” according to a summary of deliberations for the April 10 rate decision that were published Wednesday. “They felt more reassurance was needed to reduce the risk that the downward progress on core inflation would stall, and to avoid jeopardizing the progress made thus far.”

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Others argued that there were additional risks from keeping monetary policy too tight in light of progress already made to tame inflation, which had come down “significantly” across most goods and services.

Some pointed out that the distribution of inflation rates across components of the consumer price index had approached normal, despite outsized price increases and decreases in certain components.

“Coupled with indicators that the economy was in excess supply and with a base case projection showing the output gap starting to close only next year, they felt there was a risk of keeping monetary policy more restrictive than needed.”

In the end, though, the central bankers agreed to hold the rate at five per cent because inflation remained too high and there were still upside risks to the outlook, albeit “less acute” than in the past couple of years.

Despite the “diversity of views” about when conditions will warrant cutting the interest rate, central bank officials agreed that monetary policy easing would probably be gradual, given risks to the outlook and the slow path for returning inflation to target, according to the summary of deliberations.

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They considered a number of potential risks to the outlook for economic growth and inflation, including housing and immigration, according to summary of deliberations.

The central bankers discussed the risk that housing market activity could accelerate and further boost shelter prices and acknowledged that easing monetary policy could increase the likelihood of this risk materializing. They concluded that their focus on measures such as CPI-trim, which strips out extreme movements in price changes, allowed them to effectively look through mortgage interest costs while capturing other shelter prices such as rent that are more reflective of supply and demand in housing.

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They also agreed to keep a close eye on immigration in the coming quarters due to uncertainty around recent announcements by the federal government.

“The projection incorporated continued strong population growth in the first half of 2024 followed by much softer growth, in line with the federal government’s target for reducing the share of non-permanent residents,” the summary said. “But details of how these plans will be implemented had not been announced. Governing council recognized that there was some uncertainty about future population growth and agreed it would be important to update the population forecast each quarter.”

• Email: bshecter@nationalpost.com

Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here.

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Meta shares sink after it reveals spending plans – BBC.com

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Woman looks at phone in front of Facebook image - stock shot.

Shares in US tech giant Meta have sunk in US after-hours trading despite better-than-expected earnings.

The Facebook and Instagram owner said expenses would be higher this year as it spends heavily on artificial intelligence (AI).

Its shares fell more than 15% after it said it expected to spend billions of dollars more than it had previously predicted in 2024.

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Meta has been updating its ad-buying products with AI tools to boost earnings growth.

It has also been introducing more AI features on its social media platforms such as chat assistants.

The firm said it now expected to spend between $35bn and $40bn, (£28bn-32bn) in 2024, up from an earlier prediction of $30-$37bn.

Its shares fell despite it beating expectations on its earnings.

First quarter revenue rose 27% to $36.46bn, while analysts had expected earnings of $36.16bn.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said its spending plans were “aggressive”.

She said Meta’s “substantial investment” in AI has helped it get people to spend time on its platforms, so advertisers are willing to spend more money “in a time when digital advertising uncertainty remains rife”.

More than 50 countries are due to have elections this year, she said, “which hugely increases uncertainty” and can spook advertisers.

She added that Meta’s “fortunes are probably also being bolstered by TikTok’s uncertain future in the US”.

Meta’s rival has said it will fight an “unconstitutional” law that could result in TikTok being sold or banned in the US.

President Biden has signed into law a bill which gives the social media platform’s Chinese owner, ByteDance, nine months to sell off the app or it will be blocked in the US.

Ms Lund-Yates said that “looking further ahead, the biggest risk [for Meta] remains regulatory”.

Last year, Meta was fined €1.2bn (£1bn) by Ireland’s data authorities for mishandling people’s data when transferring it between Europe and the US.

And in February of this year, Meta chief executive Mark Zuckerberg faced blistering criticism from US lawmakers and was pushed to apologise to families of victims of child sexual exploitation.

Ms Lund-Yates added that the firm has “more than enough resources to throw at legal challenges, but that doesn’t rule out the risks of ups and downs in market sentiment”.

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