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S&P/TSX composite slips lower Tuesday, U.S. markets mixed

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TORONTO – Canada’s main stock index slipped lower Tuesday despite strength in energy stocks, while U.S. markets were mixed but more or less flat one day before an interest rate decision from the U.S. Federal Reserve.

Markets were in a holding pattern ahead of a much-anticipated interest rate decision from the U.S. Federal Reserve on Wednesday, said Anish Chopra, managing director with Portfolio Management Corp.

The central bank is expected to cut its key rate for the first time since it hiked rates to fight inflation.

But markets are undecided on whether the Fed will cut by a quarter of a percentage point or a larger half-point. They’re leaning toward the latter, according to data from CME Group.

In New York, the Dow Jones industrial average was down 15.90 points at 41,606.18. The S&P 500 index was up 1.49 points at 5,634.58, while the Nasdaq composite was up 35.93 points at 17,628.06.

The S&P/TSX composite index closed down 24.37 points at 23,677.70.

After a couple of weaker-than-expected jobs reports in the U.S., bets for a larger cut grew over fears the central bank had waited too long to start cutting rates.

The market believes the data shows enough of a slowdown in the economy and inflation for the Fed to make a bigger cut, said Chopra.

However, a larger rate cut could send a worrying signal, he said.

“If the Fed started out with a bigger rate cut, it’s just a more concerning sign that they are behind the curve on cutting interest rates,” he said.

New data on U.S. retail sales Tuesday didn’t move the needle, added Chopra, showing a mixed bag: shoppers spent more last month than expected, but less than expected when removing automobiles and fuel from the occasion.

The Fed is more concerned with continuing to fight inflation while avoiding too much softness in the job market, Chopra said.

“When you look at the retail sales data … it may just be an indication that the economy just isn’t slowing as quickly as some people had forecasted.”

In Canada, the Consumer Price Index reached the central bank’s target of two per cent in August.

“Gasoline prices coming down have had a big impact on inflation,” said Chopra.

The Bank of Canada has already cut rates three times this year as the Canadian economy softened faster under interest rate hikes than the U.S. economy.

The Bank of Canada has two more rate decisions in 2024, said Chopra, and some market watchers are looking at whether a half-point cut could be in the cards.

The Canadian dollar traded for 73.55 cents US compared with 73.57 cents US on Monday.

The November crude oil contract was up 94 cents at US$69.96 per barrel and the October natural gas contract was down five cents at US$2.32 per mmBTU.

The December gold contract was down US$16.50 at US$2,592.40 an ounce and the December copper contract was essentially unchanged at US$4.27 a pound.

— With files from The Associated Press

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

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

The Canadian Press. All rights reserved.



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They fled their homes to escape Boko Haram. Now Nigeria is resettling them back despite their fears

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DAMASAK, Nigeria (AP) — When Boko Haram launched an insurgency in northeastern Nigeria in 2010, Abdulhameed Salisu packed his bag and fled from his hometown of Damasak in the country’s battered Borno state.

The 45-year-old father of seven came back with his family early last year. They are among thousands of Nigerians taken back from displacement camps to their villages, hometowns or newly built settlements known as “host communities” under a resettlement program that analysts say is being rushed to suggest the conflict with the Islamic militants is nearly over.

Across Borno, dozens of displacement camps have been shut down, with authorities claiming they are no longer needed and that most places from where the displaced fled are now safe.

But many of the displaced say it’s not safe to go back.

Boko Haram — Nigeria’s homegrown jihadis — took up arms in 2009 to fight against Western education and impose their radical version of Islamic law, or Sharia. The conflict, now Africa’s longest struggle with militancy, has spilled into Nigeria’s northern neighbors.

Some 35,000 civilians have been killed and more than 2 million have been displaced in the northeastern region, according to U.N. numbers. The 2014 kidnapping of 276 schoolgirls by Boko Haram in the village of Chibok in Borno state — the epicenter of the conflict — shocked the world.

Borno state alone has nearly 900,000 internally displaced people in displacement camps, with many others absorbed in local communities. So far this year, at least 1,600 civilians have been killed in militant attacks in Borno state, according to the Armed Conflict Location and Event Data Project, a U.S.-based nonprofit.

And in a state where at least 70% of the population depends on agriculture, dozens of farmers have also been killed by the extremists or abducted from their farmland in the last year.

In May, hundreds of hostages, mostly women and children who were held captive for months or years by Boko Haram were rescued from a forest enclave and handed over to authorities, the army said.

In September, at least 100 villagers were killed by suspected Boko Haram militants who opened fire on a market, on worshippers and in people’s homes in the Tarmuwa council area of the neighboring Yobe state, west of Borno.

Analysts say that a forced resettlement could endanger the local population as there is still inadequate security across the hard-hit region.

Salisu says he wastes away his days in a resettlement camp in Damasak, a garrison town in Borno state of about 200,000 residents, close to the border with Niger.

Food is getting increasingly difficult to come by and Salisu depends on handouts from the World Food Program and other aid organizations. He longs to find work.

“We are begging the government to at least find us a means of livelihood instead of staying idle and waiting for whenever food comes,” he said.

On a visit last week to Damasak, Cindy McCain, the WFP chief, pledged the world would not abandon the Nigerian people as she called for more funding to support her agency’s aid operations.

“We are going to stay here and do the very best we can to end hunger,” McCain told The Associated Press as she acknowledged the funding shortages. “How do I take food from the hungry and give it to the starving,” she said.

Resettlement usually involves the displaced being taken in military trucks back to their villages or “host communities.” The Borno state government has promised to provide returnees with essentials to help them integrate into these areas, supported by aid groups.

The government says the displacement camps are no longer sustainable.

“What we need now is … durable solutions,” Borno governor Babagana Zulum told McCain during her visit.

As the resettlement got underway, one in five displaced persons stayed back in Maiduguri, the Borno state capital, and nearby towns but were left without any support for local integration, the Global Protection Cluster, a network of non-government organizations and U.N. agencies, said last December.

Many others have crossed the border to the north, to settle as refugees in neighboring Niger, Chad or Cameroon. The three countries have registered at least 52,000 Nigerian refugees since January 2023, according to the U.N. refugee agency — nearly twice the number registered in the 22 months before that.

A rushed closure of displacement camps and forced resettlement puts the displaced people at risk again from militants still active in their home areas — or forces them to “cut deals” with jihadis to be able to farm or fish, the International Crisis Group warned in a report earlier this year.

That could make the extremists consolidate their presence in those areas, the group warned. Boko Haram, which in 2016 split into two main factions, continues to ambush security convoys and raid villages.

Abubakar Kawu Monguno, head of the Center for Disaster Risk Management at the University of Maiduguri, said the best option is for government forces to intensify their campaign to eliminate the militants or “push them to surrender.”

After not being able to access their farms because of rampant attacks by militants, some farmers in Damasak and other parts of Mobbar district returned to work their land last year, armed with seedlings provided by the government.

Salisu was one of them.

Then a major flood struck in September, collapsing a key dam and submerging about 40% of Maiduguri’s territory. Thirty people were killed and more than a million others were affected, authorities said.

Farms that feed the state were ruined, including Salisu’s. His hopes for a good rice harvest were washed away. Now he lines up to get food at a Damasak food hub.

“Since Boko Haram started, everything else stopped here,” he said. “There is nothing on the ground and there are no jobs.”

Maryam Abdullahi also lined up at a WFP hub in Damasak with other women, waiting for bags of rice and other food items she desperately needs for her family of eight. Her youngest is 6 years old.

The donations barely last halfway through the month, she said, but she still waited in the scorching heat.

What little money she has she uses to buy yams to fry and sell to sustain her family but it’s nowhere enough. Her only wish is to be able to get a “proper job” so she and her children would feel safe, she said.

“We either eat in the morning for strength for the rest of the day or … we eat only at night,” Abdullahi said.

___

Associated Press reporter Haruna Umar in Maiduguri, Nigeria, contributed to this report. contributed.

___

The Associated Press receives financial support for global health and development coverage in Africa from the Gates Foundation. The AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.



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Saskatchewan Party platform shows $1.2B in promises; NDP slams costing for health

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SASKATOON – Saskatchewan Party Leader Scott Moe released his entire platform Saturday, pledging to spend $1.2 billion on his promises over four years if re-elected on Oct. 28.

Moe told supporters in Saskatoon his plan runs on the Saskatchewan Party’s record of growing the economy and population while making life more affordable.

It contains pre-announced commitments, including broad tax relief to reduce personal income taxes, an expansion to the Graduation Retention Program and additional rebates for families with children in sports and arts.

He also pledged to not continue paying the federal carbon levy on home heating to save people money.

The platform shows deficits in the first three years followed by a small surplus in 2027.

“We will not make promises that are costly and, I would say, irresponsible in many cases,” Moe said.

“It’s a plan for keeping life affordable for Saskatchewan families. It’s a plan for building Saskatchewan, and it’s a plan for our growing province, and our plan for investing in those very dividends of growth, into healthcare, into education and into so many services that are important to you and your family.”

But Carla Beck’s New Democrats say Moe’s fiscal plan does little to address problems in hospitals and classrooms.

Candidate Trent Wotherspoon said it shows no additional dollars for education and health care.

He said Moe’s balance sheet only shows an 0.8 per cent increase for government services spending. He added inflation is normally two per cent. Coupled with population growth, Moe’s figures would result in service reductions, he said.

“What surprises me is they would move forward with a plan that would cut those services, those emergency rooms, our classrooms that are already at a breaking point and cut them further,” Wotherspoon told reporters in Regina.

A Saskatchewan Party spokesperson responded in a statement, saying Moe’s last budget as premier shows record spending in education and health care.

The budget offered $7.6 billion for health and $2.2 billion for school divisions.

Moe took aim at Beck for calling his promises “trinkets.”

“They’re not trinkets,” Moe said. “They’re investments, direct investments in (people), in their lives and the lives of so many.”

Asked about that comment, Wotherspoon said some of the Saskatchewan Party’s past commitments have turned out to be broken promises.

He pointed to the campaign in 2016 where the Saskatchewan Party promised not to cut taxes but then raised them a year later in government.

“We have a government that can’t be taken at their word, and a government, frankly, that’s out of touch with the realities that Saskatchewan people are facing,” Wotherspoon said.

“Saskatchewan people know right now when it comes to health care, when it comes to education, when it comes to affordability, it’s time for change.”

Beck’s fiscal plan proposes an additional $3.5 billion in spending over four years, mostly to address overcrowding in hospitals and classrooms.

She’s also promised to pause the gas tax for six months and to remove the provincial sales tax from children’s clothes and ready-to-eat grocery items.

Beck has said she would pay for her promises by growing the economy and cutting $58 million in what she calls Saskatchewan Party waste.

Her plan shows small deficits in the first three years, followed by a small surplus in the fourth year.

This report by The Canadian Press was first published Oct. 12, 2024.

— By Jeremy Simes in Regina.

The Canadian Press. All rights reserved.



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Saskatchewan Party platform shows $1.2B in promises; NDP slams costing for health

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 on

SASKATOON – Saskatchewan Party Leader Scott Moe released his entire platform Saturday, pledging to spend $1.2 billion on his promises over four years if re-elected on Oct. 28.

Moe told supporters in Saskatoon his plan runs on the Saskatchewan Party’s record of growing the economy and population while making life more affordable.

It contains pre-announced commitments, including broad tax relief to reduce personal income taxes, an expansion to the Graduation Retention Program and additional rebates for families with children in sports and arts.

He also pledged to not continue paying the federal carbon levy on home heating to save people money.

The platform shows deficits in the first three years followed by a small surplus in 2027.

“We will not make promises that are costly and, I would say, irresponsible in many cases,” Moe said.

“It’s a plan for keeping life affordable for Saskatchewan families. It’s a plan for building Saskatchewan, and it’s a plan for our growing province, and our plan for investing in those very dividends of growth, into healthcare, into education and into so many services that are important to you and your family.”

But Carla Beck’s New Democrats say Moe’s fiscal plan does little to address problems in hospitals and classrooms.

Candidate Trent Wotherspoon said it shows no additional dollars for education and health care.

He said Moe’s balance sheet only shows an 0.8 per cent increase for government services spending. He added inflation is normally two per cent. Coupled with population growth, Moe’s figures would result in service reductions, he said.

“What surprises me is they would move forward with a plan that would cut those services, those emergency rooms, our classrooms that are already at a breaking point and cut them further,” Wotherspoon told reporters in Regina.

A Saskatchewan Party spokesperson responded in a statement, saying Moe’s last budget as premier shows record spending in education and health care.

The budget offered $7.6 billion for health and $2.2 billion for school divisions.

Moe took aim at Beck for calling his promises “trinkets.”

“They’re not trinkets,” Moe said. “They’re investments, direct investments in (people), in their lives and the lives of so many.”

Asked about that comment, Wotherspoon said some of the Saskatchewan Party’s past commitments have turned out to be broken promises.

He pointed to the campaign in 2016 where the Saskatchewan Party promised not to cut taxes but then raised them a year later in government.

“We have a government that can’t be taken at their word, and a government, frankly, that’s out of touch with the realities that Saskatchewan people are facing,” Wotherspoon said.

“Saskatchewan people know right now when it comes to health care, when it comes to education, when it comes to affordability, it’s time for change.”

Beck’s fiscal plan proposes an additional $3.5 billion in spending over four years, mostly to address overcrowding in hospitals and classrooms.

She’s also promised to pause the gas tax for six months and to remove the provincial sales tax from children’s clothes and ready-to-eat grocery items.

Beck has said she would pay for her promises by growing the economy and cutting $58 million in what she calls Saskatchewan Party waste.

Her plan shows small deficits in the first three years, followed by a small surplus in the fourth year.

This report by The Canadian Press was first published Oct. 12, 2024.

— By Jeremy Simes in Regina.

The Canadian Press. All rights reserved.



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