JERUSALEM — Ending a 510-day political crisis that three elections had failed to resolve, Israel on Sunday swore in a new government that was assembled to respond to the coronavirus pandemic, extending Prime Minister Benjamin Netanyahu’s record-setting tenure just a week before his corruption trial was set to begin.
The new government pairs Mr. Netanyahu, 70, with his erstwhile challenger, the centrist former army chief Benny Gantz, 60, who holds the new title of “alternate prime minister,” a veto over most major decisions, control over half the government’s ministries and an agreement to switch positions with Mr. Netanyahu on Nov. 17, 2021.
Israel’s long political stalemate, dating from December 2018, had kept the government in limbo, unable to pass major legislation or to enact a new spending plan reflecting changing national priorities.
In an inaugural speech in Parliament hours before his formal swearing-in, Mr. Netanyahu promised to deliver a new budget “that will prevent the economy from collapsing, that will guarantee stability, that will restore growth — a budget that will give you, citizens of Israel, hope, and a horizon, by restoring three things: Jobs, jobs, jobs.”
More than a million Israelis have lost their jobs since the pandemic forced most workplaces to shut down, and though schools and many employers have begun to reopen, the economy is far from back to normal.
The country’s aggressive measures worked to contain the virus, however: Israel’s death rate from Covid-19 is 31 people per million, a small fraction of the fatality rates in the United States and hard-hit countries like Britain, Italy and Spain.
While Mr. Netanyahu took credit for Israel’s coming through the pandemic relatively unscathed so far, he said he and Mr. Gantz would establish a “corona cabinet” to get ready for an expected second wave.
Mr. Gantz, who has been denounced as a turncoat by many of the center-left lawmakers who tried to help him oust Mr. Netanyahu, spoke defensively of his decision to join Mr. Netanyahu’s coalition in his own parliamentary address. He said it was no time “to remain blindly attached to what were yesterday’s hopes and aspirations.”
The inconclusive elections had left Israel’s leaders with a clear choice between unity and “civil war,” Mr. Gantz said, adding: “The people said to us: Stop fighting amongst yourselves and get to work for us.”
The fighting did not cease on Sunday, however: Both Mr. Gantz and Mr. Netanyahu were repeatedly interrupted by angry shouts from the opposition.
Mr. Netanyahu drew the loudest cries of protest when he repeated his vow to annex territory in the occupied West Bank that the Palestinians have counted on for a future state. The coalition agreement with Mr. Gantz allows Mr. Netanyahu to pursue annexation, if the United States approves it, any time after July 1.
“These areas of the country were the places of the birth and the growth of the Jewish nation,” Mr. Netanyahu said of the West Bank, as shouts of “apartheid” could be heard from opponents of annexation. “And it is time to apply Israeli law and to write a glorious new chapter in the history of Zionism.”
Moreover, even as Mr. Gantz and Mr. Netanyahu spoke of unity and healing, analysts warned that the new government’s two-headed structure could substitute one form of stalemate for another.
“Rather than paralysis that is being manifested by consecutive election campaigns, we could have paralysis with a government that cannot decide anything,” said Yohanan Plesner, president of the nonpartisan Israel Democracy Institute.
US services index shows biggest part of economy is stirring – BNNBloomberg.ca
U.S. service providers started to emerge in May from a pandemic-induced tailspin as nationwide lockdowns on business and social interaction began to lift.
The Institute for Supply Management said Wednesday that its non-manufacturing index rose 3.6 points to 45.4.
While the monthly increase was the largest in more than two years, the gauge remained below the 50 mark that shows most service-related industries continued to contract.
The purchasing managers group’s gauge of business activity, which parallels the ISM’s factory production index, jumped 15 points, the most in records dating back to 1997, to a still-tepid 41. Along with an improvement in new orders, the figures are a welcome sign that the economy is stabilizing and will gradually recover from a deep recession.
The median forecast in a Bloomberg survey of economists called for an improvement to 44.4 in the overall non-manufacturing index.
The report, however, also showed the labor market remains severely disrupted by the pandemic. The ISM measure of employment at services, which represent almost 90 per cent of the economy, only rose 1.8 points from the worst reading on record in April.
A Labor Department report on Friday is projected to show another 8 million decline in May payrolls after an unprecedented 20.5 million slump in April. The unemployment rate is forecast to soar to nearly 20 per cent.
A pickup in demand as states lift lockdowns and businesses begin to reopen is needed to help stabilize the job market. The ISM’s report showed an index orders at service providers climbed 9 points to a still-weak 41.9.
Meanwhile, the index of supplier deliveries in non-manufacturing industries fell for the first time in four months, indicating an easing in supply-chain bottlenecks and transportation delays.
Posthaste: Here are three promising data points that show the Canadian economy is ready to rebound – Financial Post
Rays (plural) of good news are piercing through the gloom surrounding the Canadian economy.
And not surprisingly, the country’s resilient housing sector is among the first to report a rebound.
Home sales jumped 53.2 per cent in May month-over-month, suggesting that April’s dramatic plunge in sales may have been the market’s low point.
Another crucial statistic was new listings that rose 47.5 per cent during May, compared to April, according to the Toronto Regional Real Estate Board.
The Real Estate Board of Greater Vancouver had also reported on Tuesday that homes sales jumped an unadjusted 34 per cent in May from April, while prices remained flat month-on-month. Benchmark prices rose 2.9 per cent to $1.03 million from a year ago.
Of course, these averages look good as the economy was wallowing in complete uncertainty in April, decimating homes sales and upending market trends.
While home sales in Toronto remain 53.7 per cent lower than May 2019, the decline was less than the 67.1 per cent year-over-year decline reported for April 2020.
“The MLS Home Price Index Composite Benchmark price was virtually unchanged in May 2020 compared to April 2020,” TRREB noted. “On a year-over-year basis, the composite benchmark was up by 9.4 per cent. The average selling price for all home types combined was up by three per cent compared to May 2019 to $863,599. On a seasonally adjusted basis, the average selling price was up by 4.6 per cent month-over-month compared to April 2020.”
A May poll by TRREB showed 27 per cent of the Greater Toronto Area households were looking to purchase a home over the next year, suggesting that sales may improve further in the coming months provided the economy is not adversely hit by new waves of the pandemic.
“As we move toward recovery, the housing sector will be a key driver of growth as consumer confidence increases and more households look to take advantage of very low borrowing costs,” said TRREB CEO John DiMichele.
Investors will also be watching a key metric that indicate where prices are headed next, especially in the pricey Vancouver real estate market.
Sales-to-active listings ratio for May 2020 was 15 per cent in the Vancouver region, detached homes at 13.5 per cent, 18.9 per cent for townhomes, and 14.8 per cent for apartments.
“Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months,” noted the Real Estate Board of Greater Vancouver.
TRREB is expecting prices to remain stable over time, with some possible uptick.
“With home sales and new listings continuing to trend in unison in May, market conditions remained balanced. This balance was evidenced by year-over-year average price growth slightly above the Bank of Canada’s long-term target for inflation,” said Jason Mercer, TRREB’s chief market analyst. “If current market conditions are sustained during the gradual re-opening of the GTA economy, a moderate pace of year-over-year price growth could continue as we move through the spring and summer months.”
Another glimmer of hope that the economy is returning to some form of normalcy has come from the transportation sector.
The Canadian National Railway Co. said it saw a 4 per cent increase in volumes of good shipped in May compared to April.
While the recovery is expected to be slow, it’s a positive sign after shipments hit bottom last month, the company’s chief financial officer Ghislain Houle said Tuesday at the UBS Global Industrials & Transportation virtual conference, according to Bloomberg.
“I think we’re seeing the light at the end of the tunnel,” Houle said. “Hopefully, it will hold.”
Canadian Pacific Railway Ltd. also said it set a new record for shipping Canadian grain and grain products in May, moving 2.80 million metric tonnes in the month.
Finally, yet another sign consumers are ready to put COVID-19 behind them is the 113,224 new light vehicles sold in Canada in May, a 147 per cent jump over April’s sales, according to a report by DesRosiers Automotive Consultants Inc. Still, May 2020 car sales were down considerably compared to the same period last year.
“It’s a measure of the strange times in which we find ourselves in that a market decline of only 44 per cent can seem like a positive sign. However, following the estimated 74.6 per cent decline in April — which sent Canadian new light vehicle sales levels back in time to roughly the early 1950’s — May’s year over year decline can evoke a touch of cautious optimism as the first tentative shoots of recovery spring up from a badly damaged marketplace,” the consultants said in a statement.
“Of course, the ongoing situation remains in flux and an already trying year could prove to have a few tricks left up its sleeves yet,” the consultants warned.
They are wispy green shoots of recovery — but we will take it.
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PROTESTS GO GLOBAL: Protesters hold placards next to the statue of 19th century British Prime Minister Benjamin Disraeli outside St George’s Hall in Liverpool, northwest England, on June 2, 2020, during demonstration after George Floyd, an unarmed black man who died after a police officer knelt on his neck during an arrest in Minneapolis, USA. – The city of Liverpool lit up their civic buildings in memory of George Floyd on June 2 the death of whom in Minneapolis while in police custody has sparked days of unrest in the US city and beyond. Paul Ellis/AFP via Getty Images
- Bank of Canada to make an interest rate announcement at 10 a.m. ET
- Teck Resources Ltd. hosts a conference call to discuss its 2019 Sustainability Report and strategy
- Quebec’s Treasury Board President Christian Dube and Finance Minister Eric Girard to discuss a bill to mitigate the effects of the pandemic and quickly revive the Quebec economy
- A Papua New Guinea court is set to rule on whether Barrick Gold Corp. can proceed with a legal challenge over the government’s refusal to extend its lease on the Porgera gold mine
- Case management conference for Huawei CFO Meng Wanzhou in Vancouver
- Transport Minister Marc Garneau, CEO of Vancouver Fraser Port Authority Robin Silvester, Robyn McVicker, a vice-president at YVR and Tim Strauss, vice-president of Air Canada cargo take part in Transportation Forum 2020
- Notable Earnings: Stingray Group Inc., Canada Goose Holdings Inc., AutoCanada Inc.
Some of the biggest cannabis players when legalization took effect 20 months ago have successfully held on to their dominant positions, despite a year of bankruptcies, downsizings, revoked licences, executive firings, mass layoffs and a long market selloff, writes Vanmala Subramaniam.
It is hard enough to make money in the stock market, even without the world shut down due to a global pandemic. In fact, studies have proven that the average stock actually goes down. So how does one make money? Well, it’s all in the math. A stock can “only” decline by 100 per cent. But if you have a big winner, you can make 1,000 per cent returns, or more. A winner or two can more than make up for many losers, writes Peter Hodson.
Today’s Posthaste was written by Yadullah Hussain (@Yad_Fpenergy), with files from The Canadian Press, Thomson Reuters and Bloomberg.
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Why the disconnect between stocks and the economy is worrying – CNN
IPOs are back as the stock market soars
The number of black leaders at US companies is still dismal
- Black professionals in 2018 held just 3.3% of all executive or senior leadership roles, which are defined as within two reporting levels of the CEO, according to the US Equal Employment Opportunity Commission.
- Among Fortune 500 companies, less than 1% of CEOs are black. Today there are only four, down from a high of six in 2012, according to Fortune.
- Black Enterprise’s 2019 Power in the Boardroom report found that among S&P 500 companies, there were 322 black corporate directors at 307 companies. Of those, 21 were chairmen and lead directors. But the report also found that more than a third of S&P 500 companies did not have any black board members whatsoever.
- The ADP report on US private employment arrives at 8:15 a.m. ET.
- The ISM Non-Manufacturing Index for May, a closely-watched gauge of the US services sector, follows at 10 a.m. ET.
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