Connect with us

Business

Statistics Canada says economy appears to have grown in second quarter – CTV News

Published

 on


OTTAWA —
The Canadian economy appears to have bounced back after its worst two-month stretch since the start of the pandemic, eking out a gain in June and growth in the second quarter of the year.

Statistics Canada said its preliminary estimate is that real gross domestic product grew at an annualized rate of 2.5 per cent between April and June, buttressed by a 0.7 per cent rise in June as pandemic restrictions eased following declines of 0.5 per cent in April and 0.3 per cent in May.

The decline in May put total economic activity about two per cent below pre-pandemic levels seen in February 2020. The agency said that with growth in June, total economic activity was about one per cent below pre-pandemic levels.

Getting through the last one per cent may not take much longer, even though some sectors have longer to go than others, said Desjardins chief economist Jimmy Jean.

Restrictions are rolling back in much of the country as vaccination rates rise, and with early indications suggesting a boost in activity, the country should see a pretty strong rebound in the third quarter absent any hiccups, Jean said.

“I think we will also be talking about the Canadian economy having fully recuperated its pre-pandemic losses,” he said.

“That’s an important milestone, but I think we also have to remember that we’re still not quite there when it comes to the labour market. That’s where there’s still quite some ways to go.”

The uneven recovery in sectors prompted the federal government on Friday to announce it was extending aid to businesses and workers until Oct. 23, and freezing benefits at current rates.

Speaking in Hamilton, Ont., Finance Minister Chrystia Freeland said the government wanted to ensure small businesses in particular have the support they need so the country can have a full and robust recovery.

The GDP figures Friday outpaced the Bank of Canada’s forecast earlier this month that the economy would grow at an annualized rate of two per cent in the second quarter. The central bank expects the economy to grow at an annualized rate of 7.3 per cent this quarter.

“Spring lockdowns in much of the country triggered the first monthly GDP declines in a year, but those setbacks are expected to be reversed in relatively short order, with June’s rebound alone almost doing the job,” said BMO chief economist Douglas Porter.

For May, Statistics Canada said retail declined by 2.7 per cent after a drop of 5.7 per cent in April as the sector was weighed down by restrictions on in-person shopping meant to combat the third wave of COVID-19.

The accommodation and food services sector was similarly affected by restrictions and declined by 2.4 per cent in May, which was not as bad as the 4.3 per cent drop in April.

Statistics Canada said manufacturing declined 0.8 per cent in May, marking the third contraction in four months.

The agency also noted that residential building construction dropped 4.2 per cent in May, down for the first time since November 2020, and a decline of 0.4 per cent in the real estate sector as home resale activity slowed.

“As housing sales and construction levels gradually return to more sustainable levels, this area of the economy could be a drag on growth in coming months,” noted TD senior economist Sri Thanabalasingam.

Statistics Canada said the easing of public health restrictions in many provinces in June helped reverse the slide in sectors reliant on in-person services, like retail, accommodation and food services, which all saw growth.

The agency adds that there were also gains in manufacturing in June, while construction and wholesale trade appear to have contracted.

The figures for June and the second quarter will be finalized at the end of August.

CIBC senior economist Royce Mendes said the economy has some open road to recover more lost ground this summer with virus cases generally low across the country.

“That said, there remain challenges on the horizon, most notably in the form of variants of the virus which have slowed progress towards healing in other developed economies,” he wrote in a note.

This report by The Canadian Press was first published July 30, 2021.

Adblock test (Why?)



Source link

Continue Reading

Business

Man uses Apple Airtags to find stolen Range Rover | CTV News – CTV News Toronto

Published

 on


An Ontario man whose car was stolen from his driveway in midtown Toronto twice in three months is revealing how he tracked and located his second vehicle.

“It’s pretty scary, but you can’t live your life in fear,” Lorne, whose surname CTV News Toronto has omitted due to safety concerns, said on Monday.

On April 1, his family moved to the Avenue Road and Lawrence Avenue area.

The following day, employees from an electronics company arrived at his house to install televisions. He placed the keys of his Range Rover Autobiography into a faraday box, which is designed to prevent criminals from copying a key fob and gaining access to a vehicle.

However, within minutes of the employees leaving his house, his car was stolen in broad daylight.

“The thieves were able to disable the tracker in my car, put there by the manufacturer,” Lorne said.

Meanwhile, his wallet, along with his kids phones, which were in the car, were thrown out of the vehicle before it was stolen, which Lorne said he believes was a preventive measure to avoid him from tracking the location of his car.

His Range Rover was never recovered.

Thirty days later, he got a new car of the same model, but this time, he placed three Apple AirTag tracking devices inside – one in the glovebox, another in his spare tire in the trunk and a third under his back seat.

While Lorne said he typically parks in his garage, last Wednesday night, he didn’t.

At 8:30 a.m. the next morning, he said his kids ran into his bedroom screaming, ”Daddy, daddy, your car is gone.” 

Right away, he logged into his Find My app and located all three of his AirTags near Manville and Comsock roads in Scarborough, listed as a metal recycling plant. 

After dropping his kids at school, he headed to that location and called the police. With no success reaching an officer, he drove to the 41 Division police station.

Toronto police spokesperson David Hopkinson confirmed to CTV News Toronto that a report of this nature was received by police on Thursday.

“I pressed my panic button and you heard it going off,” Lorne said. “The next day I was told they recovered nine cars.”

Due to an ongoing investigation, police could not comment further on the incident.

This time, however, Lorne said police recovered his vehicle and he anticipates it should be back in his possession soon.

While he said his AirTags worked in this case, he anticipates car thefts will only get increasingly sophisticated.

“It’s not foolproof,” he said.

Adblock test (Why?)



Source link

Continue Reading

Business

Company buying Trump's social media app faces subpoenas – Yahoo Canada Finance

Published

 on


NEW YORK (AP) — The company planning to buy Donald Trump’s new social media business has disclosed a federal grand jury investigation that it says could impede or even prevent its acquisition of the Truth Social app.

Shares of Digital World Acquisition Corp. dropped almost 10% Monday as the company revealed that it has received subpoenas from a grand jury in New York.

The Justice Department subpoenas follow an ongoing probe by the Securities and Exchange Commission into whether Digital World broke rules by having substantial talks about buying Trump’s company starting early last year before Digital World sold stock to the public for the first time in September, just weeks before its announcement that it would be buying Trump’s company.

Trump’s social media venture launched in February as he seeks a new digital stage to rally his supporters and fight Big Tech limits on speech, a year after he was banned from Twitter, Facebook and YouTube.

The Trump Media & Technology Group — which operates the Truth Social app and was in the process of being acquired by Digital World — said in a statement that it will cooperate with “oversight that supports the SEC’s important mission of protecting retail investors.”

The new probe could make it more difficult for Trump to finance his social media company. The company last year got promises from dozens of investors to pump $1 billion into the company, but it can’t get the cash until the Digital World acquisition is completed.

Stock in Digital World rocketed to more than $100 in October after its deal to buy Trump’s company was announced. The stock closed at $25.16 Monday.

Digital World is a special-purpose acquisition company, or SPAC, part of an investing phenomenon that exploded in popularity over the past two years.

Such “blank-check” companies are empty corporate entities with no operations, only offering investors the promise they will buy a business in the future. As such they are allowed to sell stock to the public quickly without the usual regulatory disclosures and delays, but only if they haven’t already lined up possible acquisition targets.

Digital World said in a regulatory filing Monday that each member of its board of directors has been subpoenaed by the grand jury in the Southern District of New York. Both the grand jury and the SEC are also seeking a number of documents tied to the company and others including a sponsor, ARC Global Investments, and Miami-based venture capital firm Rocket One Capital.

Some of the sought documents involve “due diligence” regarding Trump Media and other potential acquisition targets, as well as communications with Digital World’s underwriter and financial adviser in its initial public offering, according to the SEC disclosure.

Digital World also Monday announced the resignation of one of its board members, Bruce Garelick, a chief strategy officer at Rocket One.

The Associated Press

Adblock test (Why?)



Source link

Continue Reading

Business

Metals haven't crashed this hard since the Great Recession – MINING.COM – MINING.com

Published

 on


For a metal like copper, its uses in everything from heavy industrial machinery to advanced electronics mean the market is tightly linked to economic shifts, and the retreat marks a signal from commodity markets that efforts to get prices back under control are having some early successes. The mood in metals has soured even as Chinese Covid-19 lockdowns start to ease, and there are signs that traders there are betting copper prices will fall further.

“Even if China recovers in the second half, it won’t be able to single-handedly boost prices back to new highs — that age has gone,” Amelia Xiao Fu, head of commodities strategy at BOCI Global Commodities, said by phone from London. “If other major economies are heading towards a recession, China won’t be growing at exceptional rates either.”

Metals haven’t crashed this hard since the Great Recession

Chinese manufacturing activity is already shrinking, and S&P Global gauges on Thursday showed European manufacturing output contracting for the first time in two years, while US output hit a 23-month low. Even so, the magnitude of the accelerating selloff in copper and other industrial metals suggests that investors are betting on much steeper declines in demand in the coming weeks.

Copper hit a 16-month low of $8,122.50 a ton on the London Metal Exchange on Friday, with an 11% drop so far in June putting it on course for one of the biggest monthly losses of the past 30 years. Metals from aluminum to zinc have also plunged and the Bloomberg Industrial Metals Spot Subindex is down 26% this quarter, headed for the biggest drop since the end of 2008. Tin has more than halved from its March peak.

Metals have been harder hit than other commodities like crops and energy — where supplies and trade have been more forcefully affected by Russia’s invasion of Ukraine. The Bloomberg Energy Spot Subindex is up 10% since the end of March, while a corresponding agriculture index fell 9.7%.

Yet copper and several other metal markets are still facing some of the tightest supply conditions ever. With inventories dwindling globally and little sign of significant new supply, even staunch copper bulls like Goldman Sachs Group Inc. had warned that demand destruction may be necessary to help ease the strain.

The rout in industrial metals started earlier this month after the Federal Reserve hiked interest rates by 75 basis points, and warned that its effort to bring rampant inflation back under control risked sparking a recession. But the selloff accelerated last week even as investors in other markets start to price in an earlier end to the Fed’s rate-hike cycle.

The Federal Reserve has warned that it has little influence over the supply-side drivers that have underpinned the surge in commodities like crude oil, while demand for essential goods like gasoline and food will remain resilient as the pressure on consumers’ finances grows.

But the Fed’s rate hikes could have a much more immediate impact on discretionary spending, potentially bringing an end to boom in metals demand in areas like property, car-making and durable goods. And with manufacturers facing rising borrowing costs, there are also growing risks to demand in areas like construction and industrial machinery, which account for a major portion of overall usage.

Evidence of the bearish shift in sentiment is clearest in the Chinese market, where open interest in Shanghai Futures Exchange copper contracts has risen sharply during a steep decline in prices. That signals that traders are adding new shorts, rather than selling out of bullish positions. On the LME, exchange data suggests the recent slump has been driven more by investors bailing on bets on rising prices, while bearish positioning has been broadly flat for most of the month.

That could reflect hesitation about betting against the market at a time when exchange inventories remain near critically low levels, after a sharp decline in stockpiles helped drive a historic surge in spot copper prices late last year. Nickel bears got caught out in an even bigger short squeeze in March, while a new supply crisis is brewing in the zinc market after readily available LME inventories sunk to a record low last week.

For now, the recessionary risks around copper are driving away generalist investors, said BOCI’s Fu.

“Some of the so-called tourists have decided they want to get out for the time being, and from a trading perspective that makes sense — but fundamentally these markets are still very tight.”

(By Mark Burton, with assistance from Jack Farchy)

Adblock test (Why?)



Source link

Continue Reading

Trending