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Will political haggling derail Covid-19 relief? Investors are wary – CNN

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A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here.
What’s happening: Talks in Brussels over a €750 billion ($859 billion) relief package stretched into their fourth day on Monday as frugal Northern countries stood firm on limiting the proportion of grants in the mix, as opposed to loans. The conditions that would be attached to funding also remain a point of contention.
But a compromise could be close. Before the EU summit was adjourned after all-night talks Sunday, a deal was proposed that would reduce the proportion of grants to about 50% of the fund, or €375 billion ($429 billion).
“We are not there yet,” Dutch Prime Minister Mark Rutte said. “Things could still fall apart but it looks a bit more hopeful than at times last night.”
That’s good news considering the euro is rising on the assumption that a deal will be reached. The currency climbed to $1.15 on Monday, its highest level against the dollar since early 2019.
That’s not all: Stimulus negotiations will kick off in Washington “in earnest” on Monday, according to White House chief of staff Mark Meadows. Senate Majority Leader Mitch McConnell and House Minority Leader Kevin McCarthy are due to meet with President Donald Trump and Treasury Secretary Steven Mnuchin to “fine tune” the proposal, Meadows said.
Much remains up in the air — and it’s not just liberal and conservative lawmakers who are facing off. The White House and Senate Republicans are at odds over the amount of funding that should be given to the US Centers for Disease Control and Prevention, a source with direct knowledge of the matter told CNN over the weekend.
The stakes: An explosion of coronavirus cases in Sun Belt states has threatened the fragile US recovery, raising pressure on lawmakers to agree on the next round of assistance quickly. Goldman Sachs said in a note to clients that consumer spending could fall back to June levels if other states with growing case loads follow California in reimposing strict social distancing.
The bank said that if the recovery stalls or reverses this quarter, growth would likely be stronger than expected in 2021. But it could also result in long-term scarring of the economy.
“This could come in the form of permanent business closures or — with the labor market recovery now stalling, led by setbacks in the Sun Belt — lost opportunities to quickly rehire workers still on temporary layoff,” strategists led by chief economist Jan Hatzius wrote in Sunday’s note.
On the radar: As the job market sags, lawmakers need to decide whether to extend a $600 per week federal lifeline for millions of unemployed Americans.
Though the supplementary relief technically doesn’t expire until July 31, this will be the last week for which benefits are paid. If a consensus isn’t reached, more than 25 million people will be thousands of dollars poorer each month, my CNN Business colleague Tami Luhby reports.

Investors are feeling good about the vaccine timeline

Investors are increasingly bullish about the timeline for a Covid-19 vaccine as governments rack up advance orders and data from clinical trials continues to come in.
The latest: A Deutsche Bank survey of 500 market professionals released Monday shows growing optimism, with 56% of respondents expecting a vaccine within the next 12 months. That’s up from 37% in June.
The positive outlook comes as drugmakers release results from clinical studies that could be promising, sparking sharp run-ups in shares.
See here: AstraZeneca (AZN) and Oxford University are due to release early data from human trials on Monday in The Lancet medical journal.
The company has already signed agreements with countries around the world to supply hundreds of millions of doses if its vaccine is found to be both safe and effective. AstraZeneca’s stock has rallied nearly 24% this year, and gained another 4% Monday in London.
A possible vaccine developed by Pfizer and Germany’s BioNTech (BNTX) is also garnering interest after the US Food and Drug Administration gave “fast track” designations to two of their four vaccine candidates last week, lining them up for accelerated approval. The United Kingdom on Monday said it had secured 30 million doses of the vaccine candidate, as well as up to 100 million doses from French pharma company Valneva.
Pfizer’s shares rose more than 7% last week, while BioNTech’s shot up 21%. Valneva shares rose 10% in Paris on Monday.
Some moves tied to Covid-19 drugs are even more dramatic. Stock in Synairgen, a British biotech firm, leaped 451% in London on Monday after the company said that a trial of its coronavirus treatment reduced the number of patients who needed to be put on ventilators. Its shares have skyrocketed more than 2,794% year-to-date.

Why Silicon Valley’s biggest companies are betting on India

Silicon Valley’s top names are investing massive sums of money in India, a crucial growth market that is also of increasing strategic importance.
Since the start of 2020, the biggest names in US tech have invested around $17 billion in the country, my CNN Business colleague Rishi Iyengar reports.
See here: Amazon pledged $1 billion in January, Facebook invested nearly $6 billion in late April and Google topped them all last week with a $10 billion commitment. They’re part of a wave of investment in India’s tech industry this year that’s now well over $20 billion, with most of it coming from the United States.
The flood of investment highlights something that’s been true for years: India’s digital economy, with more than 700 million internet users and roughly half a billion yet to come online, is simply too big a prize for Big Tech to ignore.
But geopolitics could be playing a role, too. India’s diplomatic spat with China has spilled over into tech, aligning it with the Trump administration’s own distrust of Chinese companies. The diminishing scope for tech cooperation with China, along with new threats to footholds in places like Hong Kong, have made a presence in India even more crucial.
“China, through recent actions, has effectively delivered the US to India for a generation,” said Ravi Shankar Chaturvedi, research director at Tufts University’s Institute for Business in the Global Context.
Halliburton (HAL) reports results before US markets open. IBM (IBM) follows after the close.
Coming tomorrow: Investors turn to earnings from Coca-Cola (KO), Novartis (NVS), Snap (SNAP) and Texas Instruments (TXN).

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‘Disgraceful:’ N.S. Tory leader slams school’s request that military remove uniform

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HALIFAX – Nova Scotia Premier Tim Houston says it’s “disgraceful and demeaning” that a Halifax-area school would request that service members not wear military uniforms to its Remembrance Day ceremony.

Houston’s comments were part of a chorus of criticism levelled at the school — Sackville Heights Elementary — whose administration decided to back away from the plan after the outcry.

A November newsletter from the school in Middle Sackville, N.S., invited Armed Forces members to attend its ceremony but asked that all attendees arrive in civilian attire to “maintain a welcoming environment for all.”

Houston, who is currently running for re-election, accused the school’s leaders of “disgracing themselves while demeaning the people who protect our country” in a post on the social media platform X Thursday night.

“If the people behind this decision had a shred of the courage that our veterans have, this cowardly and insulting idea would have been rejected immediately,” Houston’s post read. There were also several calls for resignations within the school’s administration attached to Houston’s post.

In an email to families Thursday night, the school’s principal, Rachael Webster, apologized and welcomed military family members to attend “in the attire that makes them most comfortable.”

“I recognize this request has caused harm and I am deeply sorry,” Webster’s email read, adding later that the school has the “utmost respect for what the uniform represents.”

Webster said the initial request was out of concern for some students who come from countries experiencing conflict and who she said expressed discomfort with images of war, including military uniforms.

Her email said any students who have concerns about seeing Armed Forces members in uniform can be accommodated in a way that makes them feel safe, but she provided no further details in the message.

Webster did not immediately respond to a request for comment.

At a news conference Friday, Houston said he’s glad the initial request was reversed but said he is still concerned.

“I can’t actually fathom how a decision like that was made,” Houston told reporters Friday, adding that he grew up moving between military bases around the country while his father was in the Armed Forces.

“My story of growing up in a military family is not unique in our province. The tradition of service is something so many of us share,” he said.

“Saying ‘lest we forget’ is a solemn promise to the fallen. It’s our commitment to those that continue to serve and our commitment that we will pass on our respects to the next generation.”

Liberal Leader Zach Churchill also said he’s happy with the school’s decision to allow uniformed Armed Forces members to attend the ceremony, but he said he didn’t think it was fair to question the intentions of those behind the original decision.

“We need to have them (uniforms) on display at Remembrance Day,” he said. “Not only are we celebrating (veterans) … we’re also commemorating our dead who gave the greatest sacrifice for our country and for the freedoms we have.”

NDP Leader Claudia Chender said that while Remembrance Day is an important occasion to honour veterans and current service members’ sacrifices, she said she hopes Houston wasn’t taking advantage of the decision to “play politics with this solemn occasion for his own political gain.”

“I hope Tim Houston reached out to the principal of the school before making a public statement,” she said in a statement.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.

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Saskatchewan NDP’s Beck holds first caucus meeting after election, outlines plans

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REGINA – Saskatchewan Opposition NDP Leader Carla Beck says she wants to prove to residents her party is the government in waiting as she heads into the incoming legislative session.

Beck held her first caucus meeting with 27 members, nearly double than what she had before the Oct. 28 election but short of the 31 required to form a majority in the 61-seat legislature.

She says her priorities will be health care and cost-of-living issues.

Beck says people need affordability help right now and will press Premier Scott Moe’s Saskatchewan Party government to cut the gas tax and the provincial sales tax on children’s clothing and some grocery items.

Beck’s NDP is Saskatchewan’s largest Opposition in nearly two decades after sweeping Regina and winning all but one seat in Saskatoon.

The Saskatchewan Party won 34 seats, retaining its hold on all of the rural ridings and smaller cities.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.

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Nova Scotia election: Liberals say province’s immigration levels are too high

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HALIFAX – Nova Scotia‘s growing population was the subject of debate on Day 12 of the provincial election campaign, with Liberal Leader Zach Churchill arguing immigration levels must be reduced until the province can provide enough housing and health-care services.

Churchill said Thursday a plan by the incumbent Progressive Conservatives to double the province’s population to two million people by the year 2060 is unrealistic and unsustainable.

“That’s a big leap and it’s making life harder for people who live here, (including ) young people looking for a place to live and seniors looking to downsize,” he told a news conference at his campaign headquarters in Halifax.

Anticipating that his call for less immigration might provoke protests from the immigrant community, Churchill was careful to note that he is among the third generation of a family that moved to Nova Scotia from Lebanon.

“I know the value of immigration, the importance of it to our province. We have been built on the backs of an immigrant population. But we just need to do it in a responsible way.”

The Liberal leader said Tim Houston’s Tories, who are seeking a second term in office, have made a mistake by exceeding immigration targets set by the province’s Department of Labour and Immigration. Churchill said a Liberal government would abide by the department’s targets.

In the most recent fiscal year, the government welcomed almost 12,000 immigrants through its nominee program, exceeding the department’s limit by more than 4,000, he said. The numbers aren’t huge, but the increase won’t help ease the province’s shortages in housing and doctors, and the increased strain on its infrastructure, including roads, schools and cellphone networks, Churchill said.

“(The Immigration Department) has done the hard work on this,” he said. “They know where the labour gaps are, and they know what growth is sustainable.”

In response, Houston said his commitment to double the population was a “stretch goal.” And he said the province had long struggled with a declining population before that trend was recently reversed.

“The only immigration that can come into this province at this time is if they are a skilled trade worker or a health-care worker,” Houston said. “The population has grown by two per cent a year, actually quite similar growth to what we experienced under the Liberal government before us.”

Still, Houston said he’s heard Nova Scotians’ concerns about population growth, and he then pivoted to criticize Prime Minister Justin Trudeau for trying to send 6,000 asylum seekers to Nova Scotia, an assertion the federal government has denied.

Churchill said Houston’s claim about asylum seekers was shameful.

“It’s smoke and mirrors,” the Liberal leader said. “He is overshooting his own department’s numbers for sustainable population growth and yet he is trying to blame this on asylum seekers … who aren’t even here.”

In September, federal Immigration Minister Marc Miller said there is no plan to send any asylum seekers to the province without compensation or the consent of the premier. He said the 6,000 number was an “aspirational” figure based on models that reflect each province’s population.

In Halifax, NDP Leader Claudia Chender said it’s clear Nova Scotia needs more doctors, nurses and skilled trades people.

“Immigration has been and always will be a part of the Nova Scotia story, but we need to build as we grow,” Chender said. “This is why we have been pushing the Houston government to build more affordable housing.”

Chender was in a Halifax cafe on Thursday when she promised her party would remove the province’s portion of the harmonized sales tax from all grocery, cellphone and internet bills if elected to govern on Nov. 26. The tax would also be removed from the sale and installation of heat pumps.

“Our focus is on helping people to afford their lives,” Chender told reporters. “We know there are certain things that you can’t live without: food, internet and a phone …. So we know this will have the single biggest impact.”

The party estimates the measure would save the average Nova Scotia family about $1,300 a year.

“That’s a lot more than a one or two per cent HST cut,” Chender said, referring to the Progressive Conservative pledge to reduce the tax by one percentage point and the Liberal promise to trim it by two percentage points.

Elsewhere on the campaign trail, Houston announced that a Progressive Conservative government would make parking free at all Nova Scotia hospitals and health-care centres. The promise was also made by the Liberals in their election platform released Monday.

“Free parking may not seem like a big deal to some, but … the parking, especially for people working at the facilities, can add up to hundreds of dollars,” the premier told a news conference at his campaign headquarters in Halifax.

This report by The Canadian Press was first published Nov. 7, 2024.

— With files from Keith Doucette in Halifax

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