Connect with us

Economy

Euro zone economy on track for double-dip recession: PMI – TheChronicleHerald.ca

Published

 on


LONDON (Reuters) – The euro zone’s economic recovery stalled last month as a second wave of coronavirus cases and restrictions imposed to try and contain it whacked activity in the bloc’s dominant service industry, pointing to a double-dip recession, a survey showed.

Alongside their peers, Germany and France — the 19-country bloc’s two biggest economies — have reimposed tough lockdown measures, likely dealing a heavy blow this month as restaurants, gyms and shops remain closed and citizens stay at home.

“With lockdown measures being tightened, it is becoming increasingly hard to see how the euro zone economy will avoid falling back into decline,” said Chris Williamson, chief business economist at survey compiler IHS Markit.

“For all countries the outlook has grown increasingly dark.”

The euro zone economy contracted 11.8% in the second quarter but expanded a much-better-than-expected 12.7% in July-September after many lockdown restrictions were eased, official data showed on Friday.

But rising coronavirus cases pose a serious risk to the bloc’s recovery, a Reuters poll said last month, and IHS Markit’s final Composite Purchasing Managers’ Index, seen as a good gauge of economic health, dropped to 50.0 last month from September’s 50.4, although above a preliminary reading of 49.4. [ECILT/EU]

That was bang on the 50 mark which separates growth from contraction and was dragged down by the services PMI which fell to 46.9 from 48.0, its lowest since May when the first wave of the virus was sweeping across Europe.

“Service providers have been hit especially hard, led by intensifying weakness in consumer-facing sectors such as hospitality, offsetting the brighter news seen in manufacturing during the month,” Williamson said. [EU/PMIM]

The IHS Markit survey was conducted largely before many of the new restrictions were put in place across Europe but forward-looking indicators were already bleak.

Services firms cut headcount for an eighth month, demand dropped further, backlogs of work were again depleted and optimism waned. The business expectations index sank to 54.2 from 59.2, and it has mostly only ever been lower this year and during the last two financial crises.

To offer support, the European Central Bank committed last week to take new action in December to contain the growing fallout, having already pumped in unprecedented stimulus.

The Bank’s policy mandate is to have inflation just below 2% but it registered -0.3% in October, official flash data showed, so policymakers are likely to be disappointed to see firms cutting prices to drum up demand.

Despite input costs rising sharply, the composite output prices index was firmly below breakeven at 49.2, albeit above September’s 47.8.

(Reporting by Jonathan Cable; Editing by Catherine Evans)

Let’s block ads! (Why?)



Source link

Continue Reading

Economy

Consortium of Indigenous chiefs seeking a way to participate in cannabis economy – Maple Ridge News

Published

 on


Indigenous communities have been left out of the Canadian cannabis economy, and a group of Indigenous chiefs are out to change that for the good of their communities.

Chief Robert Gladstone of Shxwha:y First Nation says a consortium they’re calling “All Nations Chiefs” has worked for months to negotiate an agreement for on-reserve cannabis distribution directly with the province – but to no avail.

“It’s been two years since the rollout where they did not consult adequately with First Nations,” said Gladstone. “We are trying to find a way to participate in this new economy.”

To get there, they’ve organized an online forum with All Nations Chiefs from the communities of Shxwha:y, Cheam, Soowahlie and Sq’ewlets for the morning of Dec. 2. Organizers have invited Premier John Horgan, stakeholders, and the public to join them in the virtual dialogue on the cannabis question.

Gladstone described the recalcitrance from provincial counterparts as “another pathway out of poverty blocked” for First Nations communities across Canada, noting that only four per cent of Canadian cannabis licences are Indigenous-affiliated.

“That four per cent should be disturbing to everyone,” he said.

The group has also launched a petition that had almost 1,500 signatures by Nov. 27.

“We are asking Honourable Premier Horgan to take real action towards reconciliation and honour his government’s platform commitment to the UN Declaration of Indigenous Rights (UNDRIP) by allowing First Nations to participate in B.C.’s cannabis industry,” according to the petition preamble.

Since legalization, local First Nations leaders have been trying to control their own their destinies by finding a way to participate in the emerging economy “on a nation-to-nation basis,” the chief said.

Shxwha:y officials decided to go the route of applying for a Section 119 licence agreement under the Cannabis Control and Licensing Agreement Act, Chief Gladstone explained.

A Section 119 licence is required to legally distribute cannabis from retail stores on reserve land, and involve the province entering into agreements with individual First Nations, which supersede the Act. Only one community has signed such an agreement to date, the Williams Lake Indian Band. The Shxwha:y application used the Williams Lake vision as their model.

Some of the on-reserve cannabis stores in the area without provincial licensing have been operating in what government officials would describe as a grey area legally, while leaders are trying to negotiate a better way, with formal applications pending.

They started on-reserve stores under the inherent laws of their nation rather than under provincial licensing, some by enacting cannabis laws through land codes.

Those models differ from the route chosen by the owners of the first fully licensed cannabis store on reserve, which is The Kure on the Skwah reserve.

“The ultimate goal is to codify and harmonize the laws and regulations among all three levels of government,” Gladstone underlined.

But months later they are stymied, with no timeline, feedback or any response from the provincial government on their application. So they’re stepping up the pressure.

“We are reaching out. If they don’t answer, it’s a direct way of saying they are not interested in working toward a government-to-government relationship. There’s just no other way to interpret this.”

The online forum next Wednesday will focus on solutions to bring inclusivity and diversity to the nascent cannabis sector with First Nations involvement.

They feel they’ve put in the work to give the province a workable model.

“Now all we ask is recognition for our inherent right to trade and barter,” Gladstone said.

Chief Gladstone tells a story of how cannabis has changed everything in his village and beyond.

In total more than 100 people are working in the on-reserve stores around the Chilliwack area.

“These workers are not on CERB or social assistance,” Gladstone said.

As of a couple of years ago there were only four people working in Shxwha:y village. Now there are 13 jobs being held down currently at the store, and another 30 at the cultivation facility, where All Nations Cannabis Corp. is a Health Canada licensed cultivator and licensed producer applicant.

“It’s changed the standard of living for many in our village, going from abject poverty to a tier closer to the middle class,” Gladstone said. “So this is a success story.

“What we’re saying to the province is: ‘Don’t destroy this miracle of economic revival.’

“We’re just asking for co-operation.”

READ MORE: Cannabis stores rolling through the pandemic

READ MORE: Chilliwack has unique approach to cannabis retail

Do you have something to add to this story, or something else we should report on? Email:
jfeinberg@theprogress.com


@CHWKjourno
Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

cannabisIndigenous

Get local stories you won’t find anywhere else right to your inbox.
Sign up here

Let’s block ads! (Why?)



Source link

Continue Reading

Economy

Consortium of Indigenous chiefs seeking a way to participate in cannabis economy – North Delta Reporter

Published

 on


Indigenous communities have been left out of the Canadian cannabis economy, and a group of Indigenous chiefs are out to change that for the good of their communities.

Chief Robert Gladstone of Shxwha:y First Nation says a consortium they’re calling “All Nations Chiefs” has worked for months to negotiate an agreement for on-reserve cannabis distribution directly with the province – but to no avail.

“It’s been two years since the rollout where they did not consult adequately with First Nations,” said Gladstone. “We are trying to find a way to participate in this new economy.”

To get there, they’ve organized an online forum with All Nations Chiefs from the communities of Shxwha:y, Cheam, Soowahlie and Sq’ewlets for the morning of Dec. 2. Organizers have invited Premier John Horgan, stakeholders, and the public to join them in the virtual dialogue on the cannabis question.

Gladstone described the recalcitrance from provincial counterparts as “another pathway out of poverty blocked” for First Nations communities across Canada, noting that only four per cent of Canadian cannabis licences are Indigenous-affiliated.

“That four per cent should be disturbing to everyone,” he said.

The group has also launched a petition that had almost 1,500 signatures by Nov. 27.

“We are asking Honourable Premier Horgan to take real action towards reconciliation and honour his government’s platform commitment to the UN Declaration of Indigenous Rights (UNDRIP) by allowing First Nations to participate in B.C.’s cannabis industry,” according to the petition preamble.

Since legalization, local First Nations leaders have been trying to control their own their destinies by finding a way to participate in the emerging economy “on a nation-to-nation basis,” the chief said.

Shxwha:y officials decided to go the route of applying for a Section 119 licence agreement under the Cannabis Control and Licensing Agreement Act, Chief Gladstone explained.

A Section 119 licence is required to legally distribute cannabis from retail stores on reserve land, and involve the province entering into agreements with individual First Nations, which supersede the Act. Only one community has signed such an agreement to date, the Williams Lake Indian Band. The Shxwha:y application used the Williams Lake vision as their model.

Some of the on-reserve cannabis stores in the area without provincial licensing have been operating in what government officials would describe as a grey area legally, while leaders are trying to negotiate a better way, with formal applications pending.

They started on-reserve stores under the inherent laws of their nation rather than under provincial licensing, some by enacting cannabis laws through land codes.

Those models differ from the route chosen by the owners of the first fully licensed cannabis store on reserve, which is The Kure on the Skwah reserve.

“The ultimate goal is to codify and harmonize the laws and regulations among all three levels of government,” Gladstone underlined.

But months later they are stymied, with no timeline, feedback or any response from the provincial government on their application. So they’re stepping up the pressure.

“We are reaching out. If they don’t answer, it’s a direct way of saying they are not interested in working toward a government-to-government relationship. There’s just no other way to interpret this.”

The online forum next Wednesday will focus on solutions to bring inclusivity and diversity to the nascent cannabis sector with First Nations involvement.

They feel they’ve put in the work to give the province a workable model.

“Now all we ask is recognition for our inherent right to trade and barter,” Gladstone said.

Chief Gladstone tells a story of how cannabis has changed everything in his village and beyond.

In total more than 100 people are working in the on-reserve stores around the Chilliwack area.

“These workers are not on CERB or social assistance,” Gladstone said.

As of a couple of years ago there were only four people working in Shxwha:y village. Now there are 13 jobs being held down currently at the store, and another 30 at the cultivation facility, where All Nations Cannabis Corp. is a Health Canada licensed cultivator and licensed producer applicant.

“It’s changed the standard of living for many in our village, going from abject poverty to a tier closer to the middle class,” Gladstone said. “So this is a success story.

“What we’re saying to the province is: ‘Don’t destroy this miracle of economic revival.’

“We’re just asking for co-operation.”

READ MORE: Cannabis stores rolling through the pandemic

READ MORE: Chilliwack has unique approach to cannabis retail

Do you have something to add to this story, or something else we should report on? Email:
jfeinberg@theprogress.com


@CHWKjourno
Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

cannabisIndigenous

Get local stories you won’t find anywhere else right to your inbox.
Sign up here

Let’s block ads! (Why?)



Source link

Continue Reading

Economy

Monday's fall economic statement will try to bridge current and future needs – iPolitics.ca

Published

 on


The Liberal government is ready to table a fall economic statement that attempts to balance the current needs of the COVID-19 response with plans for Canada’s post-pandemic economy and social-safety net. 

On Monday, Finance Minister Chrystia Freeland will present her first fiscal and economic update since replacing Bill Morneau after the latter’s resignation in August. 

The statement will provide detailed fiscal projections for the years ahead, something the Liberals haven’t done since the pandemic began in the spring.

The Liberals will also present new measures to fight COVID-19, and lay the groundwork for longer-term and higher-cost priorities, such as national affordable child care, pharmacare, and fighting climate change — measures that interest labour, but concern business groups.

“I expect the government to be clear … that they remain committed to the priorities identified in the throne speech, and ensure that those things are going to be delivered on,” Hassan Yussuff, president of the Canadian Labour Congress, told iPolitics.

The throne speech included a long list of promises to green the economy and strengthen the country’s social safety net — efforts Yussuff says are vital, if Canada is to emerge from the pandemic stronger than before. 

The fiscal update coincides with a second wave of COVID cases, which have prompted new public-health restrictions that have shuttered businesses and rattled the confidence of consumers entering the holiday season. 

Levels of consumer confidence for November are now at their lowest since May, according to the Conference Board of Canada’s index.

Perrin Beatty, president and CEO of the Canadian Chamber of Commerce, said COVID will still be around for the foreseeable future, so Canada must have a plan to manage, rather than merely react to, the pandemic. 

“Unfortunately, up until now, the focus of governments has been: ‘Shut down and write a cheque,’ ” he told iPolitics.

Beatty said governments need to craft a more coherent strategy that better uses data and science to bring down infection rates, and allows Canadians to safely resume their lives soon as possible, while also ensuring resources get to the most vulnerable communities and economic sectors.

He said it’s wrong to think of a vaccine as a “silver bullet,” because it might not entirely eliminate the threat of COVID, and its distribution will take considerable time. The fiscal update should focus on current concerns, he said. 

READ MORE: Ford asks Trudeau for details of vaccine types, quantities, and timing

Speaking to reporters on Friday, Prime Minister Justin Trudeau said there are “very good chances” most Canadians will be vaccinated by September 2021.

He added that the fiscal update will include more support for Canadians during the pandemic, as well as plans to rebuild a “strong, resilient economy for everyone.”

Kevin Page said he expects the Liberals to punt some of their longer-term priorities to the next budget, while still presenting a comprehensive document.

“I think it will be more than a typical update; something probably looking like a mini-budget,” said Page, a former parliamentary budget officer and head of the University of Ottawa’s Institute of Fiscal Studies and Democracy.

The update should focus first on getting Canadians through the current crisis, said Elliot Hughes, a former policy adviser of Morneau’s.

“There’s going to be lots of time to sketch out those bigger things down the road,” he said. “What people want to know now is that the government’s got their backs.”

Hughes, now a senior advisor at Summa Strategies, cautioned that the government needs to keep its messaging “clean and straightforward,” but should be ready to answer questions about what to expect in the near future, as well in the recovery phase.

“It’s a tricky balance, but it’s one that you need to strike,” he said. 

READ MORE: Female, racialized and young Canadians less likely to benefit from jobs increase

The statement will also update the deficit, which is expected to be Canada’s largest since the Second World War. It’s also expected to be without a fiscal anchor to manage debt levels, though Freeland has previously said there’s no “blank cheque” for spending.

A report released by RBC on Friday forecasts the annual deficit to approach $370 billion, higher than the $343 billion projected in July. The report says spending announcements will add at least $90 billion to the 2021-22 deficit, and extensions to the wage subsidy and recovery benefit could add even more. 

Yussuff, who hopes the fall update will include money for infrastructure, child care and employment insurance, said now is not the time for fiscal restraint: Spending will both prevent an economic disaster and support women and people of colour, who’ve been disproportionately affected by the pandemic, he said.

“They’re going to need to be supported if we’re going to get to a full recovery.”

Beatty, who has supported Ottawa’s emergency spending thus far, said there should be a short-term child-care program to get mothers back into the workforce. But such spending must be targeted, and this is not the time for costly programs such as universal pharmacare, he said.

“Don’t get into programs that we can’t afford: permanent recurring programs that are simply going to build in a structural deficit.”

At what exact point Canada’s debt becomes a serious concern is being fiercely debated, Page said, but bond agencies might lower their credit ratings if Ottawa doesn’t re-introduce a fiscal anchor in the near future and the debt significantly increases.

Let’s block ads! (Why?)



Source link

Continue Reading

Trending