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Five questions for Joe Biden on the economy – BBC News

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.css-14iz86j-BoldTextfont-weight:bold;Joe Biden will become America’s 46th president after defeating incumbent Donald Trump in a bitterly divisive election conducted with the country still reeling from the coronavirus pandemic.

His plans for the next four years are likely to confront the challenge of a divided government, however, as Republicans claimed key victories in Congress. It’s a situation that many analysts say leaves the most ambitious parts of his agenda dead on arrival.

Here are five questions facing him when it comes to the US economy.

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1. How will he save the US economy?

For months, economists have pleaded with Washington to fund more coronavirus relief. But talks have been at an impasse, as Republicans reject the size of the spending plans put forward by Democrats, despite some pressure from Mr Trump for his party to compromise.

Republicans have indicated they will strike a deal before Mr Biden enters office, claiming a final win for Mr Trump.

But if that deal falls short of Democratic hopes, as is likely, or the recovery starts to falter, how much more will Mr Biden, who is known for being relatively moderate, seek?

On the campaign, Mr Biden backed plans to forgive student loans, increase Social Security cheques for pensioners, and provide money for small businesses. He also offered more ambitious proposals, like investing $2tn in areas such as clean energy, infrastructure and public transit.

But Republicans are likely to be even more steadfast in their resistance to spending proposals from a Democratic White House, promising a tough fight.

2. How will he address inequality?

As income inequality in the US increases to its highest in more than 50 years, liberals have pressed for higher taxes on the rich, a proposal that polls suggest is widely supported among the public.

During the campaign, Mr Biden called for reversing parts of the 2017 tax cuts signed by Donald Trump, promising to raise the rate on corporations from 21% to 28%, among other changes.

Outside groups estimated his plan could raise more than $3tn over the next decade – money that could be welcome as the pandemic swells America’s national debt.

But while Mr Biden’s proposals were not as far-reaching as some of the other plans backed by members of his party, any effort to raise rates will face a fierce fight from Republicans and business groups, who say higher taxes will hurt the economy.

With the economy in a precarious state, will Mr Biden even bother pushing the issue?

3. Can he convince America to take action on climate change?

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Climate change activists were disappointed when Mr Biden unveiled his first plan to fight climate change.

But this spring he returned with a sweeping proposal, crafted with help from some of his former critics, that has been described as the most ambitious ever put forward by an American presidential candidate.

It included investing $400bn in renewable energy research, tightening car pollution regulations, cracking down on corporate polluters, building 500,000 electric vehicle charging stations and eliminating carbon pollution from power plants by 2035.

Republicans warn the plan will “bury” the US economy. But enacting even a limited version, or focusing on regulation he can enact as president, would mark a stark turn from the Trump years, when the White House opened public lands to oil drilling, slashed regulations and walked away from global efforts, like the Paris Climate Accord.

So which proposals will Mr Biden prioritise?

4. Will he end Donald Trump’s trade wars?

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Donald Trump’s aggressive trade posture – attacking allies, criticising international organisations, and applying new border taxes on imports from countries around the world – was perhaps his most distinctive economic policy.

There’s little doubt Mr Biden will seek a reset, re-asserting America’s role as an ally and leader on the world stage, but how much will the substance differ?

When it comes to China, he has pledged “aggressive” action and few expect him to remove the tariffs Trump imposed on Chinese goods during his trade war anytime soon. As my colleague Karishma Vaswani wrote before the election, .css-yidnqd-InlineLink:linkcolor:#3F3F42;.css-yidnqd-InlineLink:visitedcolor:#696969;.css-yidnqd-InlineLink:link,.css-yidnqd-InlineLink:visitedfont-weight:bolder;border-bottom:1px solid #BABABA;-webkit-text-decoration:none;text-decoration:none;.css-yidnqd-InlineLink:link:hover,.css-yidnqd-InlineLink:visited:hover,.css-yidnqd-InlineLink:link:focus,.css-yidnqd-InlineLink:visited:focusborder-bottom-color:currentcolor;border-bottom-width:2px;color:#B80000;@supports (text-underline-offset:0.25em).css-yidnqd-InlineLink:link,.css-yidnqd-InlineLink:visitedborder-bottom:none;-webkit-text-decoration:underline #BABABA;text-decoration:underline #BABABA;-webkit-text-decoration-thickness:1px;text-decoration-thickness:1px;-webkit-text-decoration-skip-ink:none;text-decoration-skip-ink:none;text-underline-offset:0.25em;.css-yidnqd-InlineLink:link:hover,.css-yidnqd-InlineLink:visited:hover,.css-yidnqd-InlineLink:link:focus,.css-yidnqd-InlineLink:visited:focus-webkit-text-decoration-color:currentcolor;text-decoration-color:currentcolor;-webkit-text-decoration-thickness:2px;text-decoration-thickness:2px;color:#B80000;China expects no favours, regardless of the winner.

The former vice president has also endorsed the idea of tariffs in other circumstances, outlining plans to charge a fee to countries that do not meet climate and environmental obligations. And like Trump, he’s promised to revive American manufacturing, with stronger “Buy American” requirements for government spending that could bring the US in conflict with international trade rules.

International organisations and long-time allies alienated by Trump, like Canada and Europe, can probably expect fewer attacks. But some tensions are likely to linger. And in the case of the UK specifically, agreeing a trade deal may become more difficult – not less – as Mr Biden has made clear such a pact is not a high priority and may depend on what Brexit means for the Irish border.

5. Will he break up Big Tech?

The practices of America’s tech giants are under major scrutiny around the world – and at home, where politicians on the left and right have called for tougher rules in areas such as competition and consumer privacy.

Mr Biden has backed the break-up of companies as a “last resort” and criticised Facebook and others for not doing enough to police disinformation and other malign content on their platforms. He has said he supports revoking the US law that protects tech firms from liability for content posted on their platforms.

But he and his vice president Kamala Harris, who have received widespread support in Silicon Valley, have been unusually quiet on this subject. They did not, for example, showcase such positions on the campaign website.

Some of the changes under discussion require Congress to act. But the White House wields significant power on its own to conduct competition probes, enforce privacy and other regulations and can decide whether to fight international actions, like efforts in the UK and elsewhere to collect more tax from tech companies.

So, with his powers in other areas limited by the Republican presence in Congress but pressure remaining to deliver to Democrats’ liberal base, will Mr Biden champion tech regulation or will the issue take a back seat?

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A timeline of events in the bread price-fixing scandal

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Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.

Here’s a timeline of key events in the bread price-fixing case.

Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.

Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.

Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.

Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).

Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.

June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.

Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”

Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.

July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.

Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)

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S&P/TSX composite up more than 250 points, U.S. stock markets also higher

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TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.

The S&P/TSX composite index was up 254.62 points at 23,847.22.

In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.

The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.

The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.

The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.

This report by The Canadian Press was first published Sept. 19, 2024.

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

The Canadian Press. All rights reserved.

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Construction wraps on indoor supervised site for people who inhale drugs in Vancouver

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VANCOUVER – Supervised injection sites are saving the lives of drug users everyday, but the same support is not being offered to people who inhale illicit drugs, the head of the BC Centre for Excellence in HIV/AIDS says.

Dr. Julio Montaner said the construction of Vancouver’s first indoor supervised site for people who inhale drugs comes as the percentage of people who die from smoking drugs continues to climb.

The location in the Downtown Eastside at the Hope to Health Research and Innovation Centre was unveiled Wednesday after construction was complete, and Montaner said people could start using the specialized rooms in a matter of weeks after final approvals from the city and federal government.

“If we don’t create mechanisms for these individuals to be able to use safely and engage with the medical system, and generate points of entry into the medical system, we will never be able to solve the problem,” he said.

“Now, I’m not here to tell you that we will fix it tomorrow, but denying it or ignoring it, or throw it under the bus, or under the carpet is no way to fix it, so we need to take proactive action.”

Nearly two-thirds of overdose deaths in British Columbia in 2023 came after smoking illicit drugs, yet only 40 per cent of supervised consumption sites in the province offer a safe place to smoke, often outdoors, in a tent.

The centre has been running a supervised injection site for years which sees more than a thousand people monthly and last month resuscitated five people who were overdosing.

The new facilities offer indoor, individual, negative-pressure rooms that allow fresh air to circulate and can clear out smoke in 30 to 60 seconds while users are monitored by trained nurses.

Advocates calling for more supervised inhalation sites have previously said the rules for setting up sites are overly complicated at a time when the province is facing an overdose crisis.

More than 15,000 people have died of overdoses since the public health emergency was declared in B.C. in April 2016.

Kate Salters, a senior researcher at the centre, said they worked with mechanical and chemical engineers to make sure the site is up to code and abidies by the highest standard of occupational health and safety.

“This is just another tool in our tool box to make sure that we’re offering life-saving services to those who are using drugs,” she said.

Montaner acknowledged the process to get the site up and running took “an inordinate amount of time,” but said the centre worked hard to follow all regulations.

“We feel that doing this right, with appropriate scientific background, in a medically supervised environment, etc, etc, allows us to derive the data that ultimately will be sufficiently convincing for not just our leaders, but also the leaders across the country and across the world, to embrace the strategies that we are trying to develop.” he said.

Montaner said building the facility was possible thanks to a single $4-million donation from a longtime supporter.

Construction finished with less than a week before the launch of the next provincial election campaign and within a year of the next federal election.

Montaner said he is concerned about “some of the things that have been said publicly by some of the political leaders in the province and in the country.”

“We want to bring awareness to the people that this is a serious undertaking. This is a very massive investment, and we need to protect it for the benefit of people who are unfortunately drug dependent.” he said.

This report by The Canadian Press was first published Sept. 18, 2024.

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