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Disney Pulls $1 Billion Investment From Florida, Asks Ron DeSantis If He’s Thirsty for More

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MIAMI, FL – AUGUST 29: Governor Ron DeSantis gives a briefing regarding Hurricane Dorian to the media at National Hurricane Center on August 29, 2019 in Miami, Florida. Hurricane Dorian is expected to become a Category 4 as it approaches Florida in the upcoming days. (Photo by Eva Marie Uzcategui/Getty Images)Eva Marie Uzcategui/Getty Images
The Florida theme park is not f–king around.

When Ron DeSantis went after Disney for having the temerity to speak out against his bigoted “Don’t Say Gay” law, stripping the theme park of its self-governing status and installing his own hand-selected board of conservatives to run its oversight board, he clearly thought, as many a petty tyrant in his position would, that he was going to crush the company, and prevent it from ever crossing him again. But as Disney has made incredibly clear, ole Ronny-boy thought wrong!

Less than a month after suing the Florida governor and accusing him of waging a “targeted campaign of government retaliation,” Disney on Thursday pulled out of a roughly $1 billion investment in the state. It had been set to build an office complex in Orlando, which “would have brought more than 2,000 Disney jobs to the region, with $120,000 as the average salary,” The New York Times reported, citing an estimate from the Florida Department of Economic Opportunity. That’s the sort of thing most local politicians love, but apparently, for DeSantis, making sure teachers can’t say the word gay in front of students was more important. In an email to employees seen by the Times, Josh D’Amaro, Disney’s theme park and consumer products chairman, said, “changing business conditions” was the reason the project was being cancelled, adding, “I remain optimistic about the direction of our Walt Disney World business.” He also noted that the company still plans to spend $17 billion on construction at Disney World over the next decade—and create an estimated $13,000 jobs— but caveated it with “I hope we’re able to.” Which, it would seem, was a clear message to the governor that some or all of it could go away if he doesn’t stop f–king around.

Last month, after DeSantis publicly mused about building a prison complex next to the Orlando theme park, former New Jersey governor Chris Christie opined: “Where are we headed here now, that if you express disagreement in this country, the government is allowed to punish you? To me, that’s what I always thought liberals did.” (Christie obviously did not mention his own alleged brush with retaliating against people who have differing opinions.) In its lawsuit, Disney wrote: “In America, the government cannot punish you for speaking your mind.”

A spokesman for DeSantis told the Times in an email: “Disney announced the possibility of a Lake Nona campus nearly two years ago. Nothing ever came of the project, and the state was unsure whether it would come to fruition. Given the company’s financial straits, falling market cap, and declining stock price, it is unsurprising that they would restructure their business operations and cancel unsuccessful ventures.”

Should DeSantis elaborate further, we presume it will be to say something stupid like, “There are plenty of other companies who want to do business in Florida who don’t support indoctrinating children.”

Marjorie Taylor Greene simultaneously insists she’s not a white supremacist while claiming to feel threatened by a Black man (whom she was smiling at and laughing with yesterday)

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Jamaal Bowman’s response to her “reckless” and “dangerous” remarks: “She knows what she’s doing”

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Ted Cruz says a trans person in a beer commercial is as dangerous to kids as cigarettes

Lots of questions here, including: WTF is Ted Cruz on?

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Economy

S&P/TSX composite down more than 200 points, U.S. stock markets also fall

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TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.

The S&P/TSX composite index was down 239.24 points at 22,749.04.

In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.

The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.

The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.

The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.

This report by The Canadian Press was first published Sept. 6, 2024.

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

The Canadian Press. All rights reserved.

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S&P/TSX composite up more than 150 points, U.S. stock markets also higher

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TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.

The S&P/TSX composite index was up 171.41 points at 23,298.39.

In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.

The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.

The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.

The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.

This report by The Canadian Press was first published Aug. 29, 2024.

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

The Canadian Press. All rights reserved.

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Investment

Crypto Market Bloodbath Amid Broader Economic Concerns

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Breaking Business News Canada

The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.

The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.

Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.

The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.

Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.

Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.

Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.

Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.

The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.

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