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Federal government focuses on targeted investment – Sault Star

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The Sault Ste. Marie Chamber of Commerce held a virtual town hall meeting to focus on the country’s recovery, renewal and rejuvination of the economy following COVID-19.

Canada’s minister of Middle Class Prosperity Mona Fortier speaks during Question Period in the House of Commons on Parliament Hill in Ottawa, on December 9, 2019. She spoke to remembers of the Greater Sudbury Chamber of Commerce on Tuesday during a virtual town hall.

BLAIR GABLE / REUTERS

The Canadian government is focused to target investment for the middle class that will benefit the economy, the environment and protect the health of its residents, says Minister of Middle Class Prosperity and Associate Minister of Finance.

Mona Fortier and Sault MP Terry Sheehan met virtually with chamber of commerce members Tuesday to outline the federal government’s plan to recover, renew and rejuvenate the economy from the COVID-19 pandemic.

Fortier said the Liberal government will follow the four main pillars outlined in September’s Throne Speech to fight the pandemic, support Canadians, build a stronger economy and promote the country’s diversity.

“Your region has set an example of how to the flatten the curve but we can’t let our guard down,” Fortier told about two-dozen virtual participants.

For business, the plan will include breaking down inter provincial trade barriers that will allow businesses a ‘quick win’ to relaunch their businesses and get the economy moving, she said.

Breaking down inter provincial trade barriers is something the federal government has repeatedly heard from provincial premiers, Fortier said, and vows to work together to do so.

“Since March the Prime Minister has had nine meetings with the premiers to work together and this is one of the common priorities,” she said.

Regulatory barriers have already been removed for things like personal protective equipment which help with Canada’s response to the pandemic. She agrees more needs to be done, including reducing the red tape for those entering the skilled trade to allow them to move between provinces for employment.

Sheehan said the same issue has been discussed at the International Trade Committee meetings, of which he is a member.

“We need all governments, at all levels to keep working together and we need to keep the momentum up,” he said.

Sheehan wants to see more Red Seals created that will allow tradesperson to be recognized for their skills across the country, recognizing a standard of excellence with their trade.

It was also pointed out that while the oil and gas industry is particularly important to the western provinces, Ontario, including Sault Ste. Marie and Northern Ontario, have a role to play by supplying parts and equipment for that industry.

Fortier was also asked her views about a Buy Canada procurement policy.

“That’s exactly where we are going,” she said. “Businesses are stronger when we work together and innovate.”

Fortier said that Industry Minister Navdeep Bains is focusing on a made-in-Canada approach.

Such a procurement policy has recently helped Sault Ste. Marie based China Steel who was awarded a contract to supply product for Canada’s military armoured vehicles.

China Steel, an industrial fabricator and machine shop, was awarded a $1 million sub contract to manufacture components for Canada’s new armoured vehicle fleet.

For Sault Ste. Marie and many parts of Northern Ontario, tourism was also sharply hit during the pandemic.

The minister was asked how Canada will be marketed as a safe travel destination as the pandemic ends.

“That’s difficult to answer with the uncertainty we have now,” Fortier said. “We are trying to support business and non-profits.”

Border restrictions are in place to help prevent the spread of COVID-19 and the decisions have not been taken lightly, she said, adding that the border closure is under constant evaluation.

The federal government has established a number of emergency response programs also geared to help the tourist industry and support for that sector has been extended until next year, she said.

“We recognize that we have four seasons and support needed may vary from one season to another,” Sheehan said. “We understand the critical need is there.”

Fortier’s participation in the town hall meeting is the second in a series of similar events she is participating in to discuss how to build back a better economy following the pandemic.

She said working with chambers of commerce have helped the federal government better understand business needs and how best businesses can be supported through programs.

“In the long-term, as we look to recovery, we are determined to build back better by addressing the gaps in our social systems, strengthening the middle class, supporting those working hard to join it, generating clean growth and creating jobs,” Fortier said.

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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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Crypto Market Bloodbath Amid Broader Economic Concerns

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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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