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The Canadian Press

Military takes control of Myanmar; Suu Kyi reported detained

NAYPYITAW, Myanmar — Myanmar military television said Monday that the military was taking control of the country for one year, while reports said many of the country’s senior politicians including Aung San Suu Kyi had been detained. A presenter on military-owned Myawaddy TV announced the takeover and cited a section of the military-drafted constitution that allows the military to take control in times of national emergency. He said the reason for takeover was in part due to the government’s failure to act on the military’s claims of voter fraud in last November’s election and its failure to postpone the election because of the coronavirus crisis. The announcement follows days of concern about the threat of a military coup — and military denials that it would stage one — and came on the morning the country’s new Parliament session was to begin. The takeover is a sharp reversal of the partial yet significant progress toward democracy Myanmar made in recent years following five decades of military rule and international isolation that began in 1962. It would also be shocking fall from power for Suu Kyi, who led the democracy struggle despite years under house arrest and and won a Nobel Peace Prize for her efforts. The military’s actions were already receiving widespread international condemnation. New U.S. Secretary of State Anthony Blinken issued a statement expressing “grave concern and alarm” over the reported detentions. “We call on Burmese military leaders to release all government officials and civil society leaders and respect the will of the people of Burma as expressed in democratic elections,” he wrote, using Myanmar’s former name. “The United States stands with the people of Burma in their aspirations for democracy, freedom, peace, and development.” Australian Foreign Minister Marise Payne issued a similar statement, also calling on the military to respect the rule of law and release the leaders it had detained. The detention of the politicians and cuts in television signals and communication services on Monday were the first signs that plans to seize power were in motion. Phone and internet access to Naypyitaw was lost and Suu Kyi’s National League for Democracy party could not be reached. Phone service in other parts of the country was also reported down, though people were still able to use the internet. The Irrawaddy, an established online news service, reported that Suu Kyi, who as state counsellor is the nation’s top leader, and the country’s president, Win Myint, were both detained in the pre-dawn hours. The news service cited Myo Nyunt, a spokesman for the NLD. Its report said that the party’s Central Executive Committee members, lawmakers and regional Cabinet members had also been taken into custody. A list of other people believed to have been detained, compiled by political activists who asked not to be named for security reasons, included filmmaker Min Htin Ko Ko Gyi, writer Maung Thar Cho, and prominent veterans of the country’s 1988 student protest movement, such as Ko Ko Gyi and Min Ko Naing. Their detention could not immediately be confirmed. In Yangon, the country’s biggest city, life on the street appeared mostly as usual, as people carried out their normal morning activities, including exercising at a popular park. Monday’s parliamentary session was to be the first since last year’s election, as tension lingered over recent comments by the military that were widely seen as threatening a coup. The military, however, maintains its actions are legally justified, though Suu Kyi’s party spokesman as well as many international observers have said it is in effect a coup. The 2008 constitution, drafted and implemented during military rule, has a clause that says in case there is a national emergency, the president in co-ordination with the military-dominated National Defence and Security Council can issue an emergency decree to hand over the government’s executive, legislative and judicial powers to the military’s commander-in-chief. The clause had been described by New York-based Human Rights Watch as a “coup mechanism in waiting.” It is just one of many parts of the charter that ensured the military could maintain ultimate control over the country at the expense elected politicians. The military also was guaranteed 25% of seats in Parliament and control of several key ministries, especially those involved in security and defence. The 75-year-old Suu Kyi is by far the country’s most popular politician, and became the country’s de facto leader after her party won 2015 elections, though the constitution barred her from being president. She had been a fierce antagonist of the army during her time under house arrest. Nevertheless, once in power Suu Kyi had to balance her relationship with the country’s generals and even went on the international stage to defend their crackdown on Rohingya Muslims in the country’s west, a campaign the U.S. and others have labeled genocide. That has left her reputation internationally in tatters. She remains wildly popular at home, where most supported the campaign against the Rohingya. Suu Kyi’s party captured 396 out of 476 seats in the combined lower and upper houses of Parliament in last November’s polls. The military, known as the Tatmadaw, has charged that there was massive voting fraud in the election, though it has failed to provide proof. The state Union Election Commission last week rejected its allegations. Amid the bickering over the allegations, the military last Tuesday ramped up political tension when a spokesman at its weekly news conference, responding to a reporter’s question, declined to rule out the possibility of a coup. Maj. Gen. Zaw Min Tun elaborated by saying the military would “follow the laws in accordance with the constitution.” Using similar language, the military Commander-in-Chief Senior Gen. Min Aung Hlaing told senior officers in a speech Wednesday that the constitution could be revoked if the laws were not being properly enforced. Adding to the concern was the unusual deployment of armoured vehicles in the streets of several large cities. On Saturday, however, the military denied it had threatened a coup, accusing unnamed organizations and media of misrepresenting its position and taking the general’s words out of context. On Sunday, it reiterated its denial, this time blaming unspecified foreign embassies of misinterpreting the military’s position and calling on them “not to make unwarranted assumptions about the situation.” The Associated Press

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Energy stocks help lift S&P/TSX composite, U.S. stock markets also up

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TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.

The S&P/TSX composite index was up 34.91 points at 23,736.98.

In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.

The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.

The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.

The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.

This report by The Canadian Press was first published Sept. 17, 2024.

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

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Canada’s inflation rate hits 2% target, reaches lowest level in more than three years

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OTTAWA – Canada’s inflation rate fell to two per cent last month, finally hitting the Bank of Canada’s target after a tumultuous battle with skyrocketing price growth.

The annual inflation rate fell from 2.5 per cent in July to reach the lowest level since February 2021.

Statistics Canada’s consumer price index report on Tuesday attributed the slowdown in part to lower gasoline prices.

Clothing and footwear prices also decreased on a month-over-month basis, marking the first decline in the month of August since 1971 as retailers offered larger discounts to entice shoppers amid slowing demand.

The Bank of Canada’s preferred core measures of inflation, which strip out volatility in prices, also edged down in August.

The marked slowdown in price growth last month was steeper than the 2.1 per cent annual increase forecasters were expecting ahead of Tuesday’s release and will likely spark speculation of a larger interest rate cut next month from the Bank of Canada.

“Inflation remains unthreatening and the Bank of Canada should now focus on trying to stimulate the economy and halting the upward climb in the unemployment rate,” wrote CIBC senior economist Andrew Grantham.

Benjamin Reitzes, managing director of Canadian rates and macro strategist at BMO, said Tuesday’s figures “tilt the scales” slightly in favour of more aggressive cuts, though he noted the Bank of Canada will have one more inflation reading before its October rate announcement.

“If we get another big downside surprise, calls for a 50 basis-point cut will only grow louder,” wrote Reitzes in a client note.

The central bank began rapidly hiking interest rates in March 2022 in response to runaway inflation, which peaked at a whopping 8.1 per cent that summer.

The central bank increased its key lending rate to five per cent and held it at that level until June 2024, when it delivered its first rate cut in four years.

A combination of recovered global supply chains and high interest rates have helped cool price growth in Canada and around the world.

Bank of Canada governor Tiff Macklem recently signalled that the central bank is ready to increase the size of its interest rate cuts, if inflation or the economy slow by more than expected.

Its key lending rate currently stands at 4.25 per cent.

CIBC is forecasting the central bank will cut its key rate by two percentage points between now and the middle of next year.

The U.S. Federal Reserve is also expected on Wednesday to deliver its first interest rate cut in four years.

This report by The Canadian Press was first published Sept. 17, 2024.

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Federal money and sales taxes help pump up New Brunswick budget surplus

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FREDERICTON – New Brunswick‘s finance minister says the province recorded a surplus of $500.8 million for the fiscal year that ended in March.

Ernie Steeves says the amount — more than 10 times higher than the province’s original $40.3-million budget projection for the 2023-24 fiscal year — was largely the result of a strong economy and population growth.

The report of a big surplus comes as the province prepares for an election campaign, which will officially start on Thursday and end with a vote on Oct. 21.

Steeves says growth of the surplus was fed by revenue from the Harmonized Sales Tax and federal money, especially for health-care funding.

Progressive Conservative Premier Blaine Higgs has promised to reduce the HST by two percentage points to 13 per cent if the party is elected to govern next month.

Meanwhile, the province’s net debt, according to the audited consolidated financial statements, has dropped from $12.3 billion in 2022-23 to $11.8 billion in the most recent fiscal year.

Liberal critic René Legacy says having a stronger balance sheet does not eliminate issues in health care, housing and education.

This report by The Canadian Press was first published Sept. 16, 2024.

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