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Georgia Gov. Brian Kemp faces resistance over move to reopen economy – CNN

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Kemp, a Republican and staunch ally of President Donald Trump, on Monday announced Georgia would allow nail salons, massage therapists, bowling alleys and gyms to open Friday. In-person church services can resume. And restaurants and movie theaters can open Monday. His order also bars cities from imposing their own restrictions on businesses.
It’s the most aggressive move yet to reopen a state’s economy as Trump optimistically pushes for a May 1 end to some statewide lockdowns. It also came as a surprise to mayors and some members of Kemp’s own coronavirus task force.
In Georgia, mayors are pushing back, some businesses are saying they’ll keep their doors closed and even Trump allies are questioning whether Kemp is moving too quickly.
Analysis: Georgia's reopening is a high-stakes public health bet -- and will likely please Trump
South Carolina Sen. Lindsey Graham, whose state is moving toward a more limited reopening, tweeted Tuesday: “I worry that our friends and neighbors in Georgia are going too fast too soon.”
“We respect Georgia’s right to determine its own fate, but we are all in this together,” Graham, a Republican, said. “What happens in Georgia will impact us in South Carolina.”
Kemp was among the last governors to sign a shelter-in-place order on April 2. He was also mocked for admitting on April 1 that he had only just learned that asymptomatic people could spread the coronavirus — information that had been widely known for months.
Data collected by Johns Hopkins University shows that as of Tuesday, Georgia had seen 19,884 cases of coronavirus and had recorded 802 deaths resulting from the virus.
“In the same way that we carefully closed businesses and urged operations to end to mitigate the virus’ spread, today we’re announcing plans to incrementally and safely reopen sectors of our economy,” Kemp told reporters Monday.
Mayors in Georgia are pushing back against Kemp’s decision.
“I have searched my head and my heart on this and I am at a loss as to what the governor is basing this decision on,” Atlanta Mayor Keisha Lance Bottoms, a Democrat, told CNN.
She said she is considering legal options for a city that she said is “not out of the woods yet.”
“You have to live to fight another day. And you have to be able to be amongst the living to be able to recover,” she said.
Kelly Girtz, the Democratic mayor of Athens, told CNN he would “not in the least” recommend going to gyms, tattoo parlors or bowling alleys on Friday. Gritz said he first wanted to see a dramatic increase in coronavirus testing and a sustained downward trend in confirmed cases.
“We’re not going to frequent businesses right now because we don’t feel safe. We’re not going to return to work,” he said the area’s residents have told him. “I’ve had a number of hair salon owners approach me over the last day and say we’re not opening our doors back up because we care about our employees and we care about our clients.”
Some businesses said they would not follow Kemp’s guidance and would keep their doors closed.
SoulCycle studios in Georgia will not open on Friday even though they’re allowed to, announced Harvey Spevak, the chairman of Equinox Group, which owns SoulCycle. Instead, he said, the company is working with infectious disease experts to determine when and how to reopen.
Celebrities who own Georgia businesses, including former professional wrestler Diamond Dallas Page, who owns a gym, and rapper Killer Mike, who owns barber shops, told TMZ they would not reopen Friday.
Stacey Abrams, Kemp’s 2018 opponent and a 2020 Democratic vice presidential prospect, criticized Kemp’s move Tuesday on MSNBC.
“The worry is that while trying to push a false opening of the economy, we risk putting more lives in danger, and there’s nothing about this that makes sense,” Abrams said.
Georgia’s coronavirus cases have been concentrated most heavily in largely African American regions of the state, raising concerns that opening businesses too quickly would disproportionately hurt black communities.
The virus has hit southwestern Georgia particularly hard. Albany, Georgia, Mayor Bo Dorough said he is “very upset” that mayors have been blocked by Kemp from setting stricter guidelines for businesses to reopen.
“I am hoping that we have passed the peak. But then you read about the possibility of a second wave and I am obviously concerned about that,” Dorough told CNN.
Reginald T. Jackson, the African Methodist Episcopal bishop in the Atlanta region, directed hundreds of AME churches to remain closed Sunday despite Kemp’s order that would allow them to host services.
“There is no need to increase the possibility of more sickness and death by gathering prematurely,” Jackson said in a statement. “We absolutely must increase testing, and flatten the curve before we begin to gather again.”

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Economy

Bank of Canada trying to figure out how AI might affect inflation, Macklem says

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OTTAWA – Bank of Canada governor Tiff Macklem says there is a lot of uncertainty around how artificial intelligence could affect the economy moving forward, including the labour market and price growth.

In a speech in Toronto at the Economics of Artificial Intelligence Conference, the governor said Friday that the central bank is approaching the issue cautiously to get a better understanding of how AI could affect its job of keeping inflation low and stable.

“Be wary of anyone who claims to know where AI will take us. There is too much uncertainty to be confident,” Macklem said in prepared remarks.

“We don’t know how quickly AI will continue to advance. And we don’t know the timing and extent of its economic and social impacts.”

The governor said AI has the potential of increasing labour productivity, which would raise living standards and grow the economy without boosting inflation.

In the short-term, he said investment in AI is adding to demand and could be inflationary.

However, Macklem also highlighted more pessimistic scenarios, where AI could destroy more jobs than it creates or lead to less competition rather than more.

The governor called on academics and businesses to work together to shed more light on the potential effects of AI on the economy.

“When you enter a dark room, you don’t go charging in. You cautiously feel your way around. And you try to find the light switch. That is what we are doing. What we central bankers need is more light,” he said.

This report by The Canadian Press was first published Sept. 20, 2024.

The Canadian Press. All rights reserved.

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Business

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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Economy

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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