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Talks scheduled to end rail blockades, restore passenger and freight service – CTV News

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TORONTO —
Anti-pipeline protests that have derailed vital freight movement in eastern Ontario and passenger rail travel across Canada are continuing Friday, with the added threat of activists planning to shut down government offices in British Columbia’s capital.

Meetings are scheduled between Indigenous leaders and federal ministers who are looking to negotiate an end to the rail blockades in eastern Ontario and B.C., while business leaders and opposition are calling for immediate action to end the disruptions, which have already seen dozens of arrests.

The protests began last week after the RCMP enforced a court injunction against Indigenous leaders and their supporters who had been halting construction of the Coastal GasLink pipeline project, a major piece of a $40-billion LNG Canada liquefied natural gas export project on the B.C. coast.

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The 670-kilometre pipeline crosses the traditional territories of the Wet’suwet’en First Nation.

Indigenous leaders in B.C.’s northwest have invited federal and B.C. politicians to meetings, while following through on a promise to ensure a blockade of CN Rail tracks near New Hazelton, B.C. would come down during talks.

The blockade had been in place since Saturday, preventing shipments to the Port of Prince Rupert.

Gitxsan hereditary chief Norm Stephens says the blockade could go back up if the province doesn’t agree to cancel Coastal GasLink’s pipeline permit during the scheduled talks.

Demonstrators who are blocking tracks near Belleville, Ont., a critical corridor linking Montreal and Ottawa with Toronto, say they’re standing with those opposed to the pipeline.

A court injunction has been granted in Ontario that gives the OPP authority to clear the protesters, but as yet no enforcement action has been taken.

Canadian National Railway said Thursday it was starting a progressive shutdown in its eastern freight network due to the blockade, while Via Rail cancelled all service on CN tracks in Canada.

Only two northern Via routes – Sudbury-White River and Churchill-The Pas – will remain open.

Passengers with bookings will receive automatic refunds, and the company will not accept any new bookings before Feb. 21.

In addition to being a major inconvenience to passengers, the disruptions will cause a huge economic hit. The shutdown by CN is largely seen as a move to pressure Ottawa to take action.

While Prime Minister Justin Trudeau says the rule of law must be followed and federal Transport Minister Marc Garneau has previously called the blockades “illegal,” the federal government has largely taken a hands-off approach, saying enforcing injunctions against protesters is a provincial responsibility.

Garneau is expected to meet Friday with his provincial and territorial counterparts as well as representatives of national Indigenous organizations to discuss a way forward. He is scheduled to speak at a press conference at 10 a.m.

Meanwhile, the B.C. Supreme Court granted an injunction Thursday that authorizes police to arrest and remove people participating in any further blockades at the legislature building in Victoria. Hundreds of people blocked the entrances to the legislature earlier this week in support of pipeline protests.

There are signs the protests are intensifying.

Hundreds of people marched in an anti-pipeline protest late Thursday afternoon through downtown Saskatoon and as the New Hazelton blockade was coming down, another was going up near the Pitt River bridge in Coquitlam. As a result, B.C.’s TransLink announced Friday morning that the West Coast Express service will not run, and will be replaced by buses.

Manitoba Premier Brian Pallister is demanding that Ottawa provide clarity on future resource development applications, saying the rail blockades show there needs to be a better process.

Pallister made the remarks after an anti-pipeline blockade of a major rail line west of Winnipeg came down. Activists have promised that more protests are coming.

As the turmoil continues, TC Energy, which is building the $6.2-billion pipeline that will take liquefied natural gas from northeastern B.C. to an export terminal now under construction in Kitimat, is proceeding with work at more than 30 sites.

The economic impact of the rail disruption has yet to be fully felt.

CN says the halt may lead to temporary layoffs for eastern Canadian staff and the Teamsters Union, which represents 16,000 works in the rail industry, warns that 6,000 works could be affected.

CN moves $250 billion a year in goods and the shutdown will affect a variety of products, including propane, jet fuel and de-icing chemicals, chlorine for drinking water, and aluminum and lumber needed in the construction industry.

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Tesla Promises Cheap EVs by 2025 | OilPrice.com – OilPrice.com

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Tesla Promises Cheap EVs by 2025 | OilPrice.com



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Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

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Tesla has promised to start selling cheaper models next year, days after a Reuters report revealed that the company had shelved its plans for an all-new Tesla that would cost only $25,000.

The news that Tesla was scrapping the Model 2 came amid a drop in sales and profits, and a decision to slash a tenth of the company’s global workforce. Reuters also noted increased competition from Chinese EV makers.

Tesla’s deliveries slumped in the first quarter for the first annual drop since the start of the pandemic in 2020, missing analyst forecasts by a mile in a sign that even price cuts haven’t been able to stave off an increasingly heated competition on the EV market.

Profits dropped by 50%, disappointing investors and leading to a slump in the company’s share prices, which made any good news urgently needed. Tesla delivered: it said it would bring forward the date for the release of new, lower-cost models. These would be produced on its existing platform and rolled out in the second half of 2025, per the BBC.

Reuters cited the company as warning that this change of plans could “result in achieving less cost reduction than previously expected,” however. This suggests the price tag of the new models is unlikely to be as small as the $25,000 promised for the Model 2.

The decision is based on a substantially reduced risk appetite in Tesla’s management, likely affected by the recent financial results and the intensifying competition with Chinese EV makers. Shelving the Model 2 and opting instead for cars to be produced on existing manufacturing lines is the safer move in these “uncertain times”, per the company.

Tesla is also cutting prices, as many other EV makers are doing amid a palpable decline in sales in key markets such as Europe, where the phaseout of subsidies has hit demand for EVs seriously. The cut is of about $2,000 on all models that Tesla currently sells.

By Charles Kennedy for Oilprice.com

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Why the Bank of Canada decided to hold interest rates in April – Financial Post

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Divisions within the Bank of Canada over the timing of a much-anticipated cut to its key overnight interest rate stem from concerns of some members of the central bank’s governing council that progress on taming inflation could stall in the face of stronger domestic demand — or even pick up again in the event of “new surprises.”

“Some members emphasized that, with the economy performing well, the risk had diminished that restrictive monetary policy would slow the economy more than necessary to return inflation to target,” according to a summary of deliberations for the April 10 rate decision that were published Wednesday. “They felt more reassurance was needed to reduce the risk that the downward progress on core inflation would stall, and to avoid jeopardizing the progress made thus far.”

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Others argued that there were additional risks from keeping monetary policy too tight in light of progress already made to tame inflation, which had come down “significantly” across most goods and services.

Some pointed out that the distribution of inflation rates across components of the consumer price index had approached normal, despite outsized price increases and decreases in certain components.

“Coupled with indicators that the economy was in excess supply and with a base case projection showing the output gap starting to close only next year, they felt there was a risk of keeping monetary policy more restrictive than needed.”

In the end, though, the central bankers agreed to hold the rate at five per cent because inflation remained too high and there were still upside risks to the outlook, albeit “less acute” than in the past couple of years.

Despite the “diversity of views” about when conditions will warrant cutting the interest rate, central bank officials agreed that monetary policy easing would probably be gradual, given risks to the outlook and the slow path for returning inflation to target, according to the summary of deliberations.

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They considered a number of potential risks to the outlook for economic growth and inflation, including housing and immigration, according to summary of deliberations.

The central bankers discussed the risk that housing market activity could accelerate and further boost shelter prices and acknowledged that easing monetary policy could increase the likelihood of this risk materializing. They concluded that their focus on measures such as CPI-trim, which strips out extreme movements in price changes, allowed them to effectively look through mortgage interest costs while capturing other shelter prices such as rent that are more reflective of supply and demand in housing.

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They also agreed to keep a close eye on immigration in the coming quarters due to uncertainty around recent announcements by the federal government.

“The projection incorporated continued strong population growth in the first half of 2024 followed by much softer growth, in line with the federal government’s target for reducing the share of non-permanent residents,” the summary said. “But details of how these plans will be implemented had not been announced. Governing council recognized that there was some uncertainty about future population growth and agreed it would be important to update the population forecast each quarter.”

• Email: bshecter@nationalpost.com

Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here.

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Meta shares sink after it reveals spending plans – BBC.com

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Woman looks at phone in front of Facebook image - stock shot.

Shares in US tech giant Meta have sunk in US after-hours trading despite better-than-expected earnings.

The Facebook and Instagram owner said expenses would be higher this year as it spends heavily on artificial intelligence (AI).

Its shares fell more than 15% after it said it expected to spend billions of dollars more than it had previously predicted in 2024.

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Meta has been updating its ad-buying products with AI tools to boost earnings growth.

It has also been introducing more AI features on its social media platforms such as chat assistants.

The firm said it now expected to spend between $35bn and $40bn, (£28bn-32bn) in 2024, up from an earlier prediction of $30-$37bn.

Its shares fell despite it beating expectations on its earnings.

First quarter revenue rose 27% to $36.46bn, while analysts had expected earnings of $36.16bn.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said its spending plans were “aggressive”.

She said Meta’s “substantial investment” in AI has helped it get people to spend time on its platforms, so advertisers are willing to spend more money “in a time when digital advertising uncertainty remains rife”.

More than 50 countries are due to have elections this year, she said, “which hugely increases uncertainty” and can spook advertisers.

She added that Meta’s “fortunes are probably also being bolstered by TikTok’s uncertain future in the US”.

Meta’s rival has said it will fight an “unconstitutional” law that could result in TikTok being sold or banned in the US.

President Biden has signed into law a bill which gives the social media platform’s Chinese owner, ByteDance, nine months to sell off the app or it will be blocked in the US.

Ms Lund-Yates said that “looking further ahead, the biggest risk [for Meta] remains regulatory”.

Last year, Meta was fined €1.2bn (£1bn) by Ireland’s data authorities for mishandling people’s data when transferring it between Europe and the US.

And in February of this year, Meta chief executive Mark Zuckerberg faced blistering criticism from US lawmakers and was pushed to apologise to families of victims of child sexual exploitation.

Ms Lund-Yates added that the firm has “more than enough resources to throw at legal challenges, but that doesn’t rule out the risks of ups and downs in market sentiment”.

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