Doug Ford, federal Liberals trade blame over Bombardier layoffs in Thunder Bay - CBC News

Ontario Premier Doug Ford and the federal Liberal government are locked in a war of words over who is responsible for hundreds of layoffs at a Bombardier plant in the northwestern Ontario city of Thunder Bay.

Employment Minister Patty Hajdu, who represents the area in Parliament, fired the first shot Wednesday morning with a news release saying the Ontario premier "sat on his hands and made empty promises" about projects that would have given the workers more things to build and helped to stave off the 550 layoffs — roughly half of the plant's total workforce.

The plant makes vehicles for the commuter rail GO Transit network and the Toronto Transit Commission. Bombardier has said the layoffs are necessary because contracts for the GO and TTC vehicles will come to an end in a few weeks' time. It also cited Buy America provisions for infrastructure projects in the U.S., which demand products be made stateside, as another source of its troubles.

Ford said the province has a $28.5-billion plan to expand transit but Ottawa hasn't come through with a financial commitment of its own to support that work. In addition, Ford said he moved up a contract for GO Transit trains worth some $130 million to help keep the plant open.

"I haven't seen hide nor hair from the federal government," Ford said. "Where is their money? They've done absolutely nothing to support these people in Thunder Bay. We have a plan sitting there that can keep these people employed."

Vic Fedeli, Ontario's minister of economic development, said Hajdu has been "missing in action" for her constituents.

"While Ontario has met with Bombardier, Unifor, and offered to purchase $100 million of vehicles from the plant in the last month, where was Minister Hajdu?" he said. "She's been missing in action, not engaging with her provincial counterparts, and instead blaming everyone but herself and the federal government."

'There's nothing but chaos, confusion and paralyzation'

But Ottawa maintains infrastructure cash has been on offer for months and the Ontario government simply hasn't come through with an actual, fully formed proposal to tap federal funds for Toronto transit initiatives.

In a letter sent today to Laurie Scott, Ontario's minister of infrastructure, federal Infrastructure Minister François Philippe Champagne said there is $8.3 billion on offer from the federal government for Ontario transit projects, including $4.9 billion for Toronto and $593 million for MetroLinx, the provincially owned Crown corporation that operates GO. The rollout of those funds depends on "full applications and project details" from the province, Champagne wrote.

Hajdu said Ford's comments are nothing but "empty words" and she was disappointed to see the premier "misleading Ontarians" about federal support for these industrial workers. Hajdu said she has been pressuring her provincial counterparts to make infrastructure funding requests to keep the Thunder Bay workers employed.

Ontario Premier Doug Ford says the federal government is to blame for layoffs in Thunder Bay by not signing on to Ontario's proposed $28.5 billion transit plan. 2:30

She said while there is a joint federal-Ontario infrastructure funding agreement — the cost-sharing agreement has been on the books since March 2018 — there hasn't been an application from the Progressive Conservative government at Queen's Park for money to buy new vehicles or expand transit lines in Toronto, which would give Bombardier workers something to build.

"There's nothing but chaos, confusion and paralyzation ... there's complete confusion in the province as to what they're actually proposing," Hajdu said of the Ford government in an interview with CBC News Network.

"They've been draggling their heels. Calling a recess five months before a federal election signals to me this government just isn't up to the job. They say they're for the people, but they're taking an extended leave while people suffer, while 550 families in Thunder Bay sit in a state of uncertainty and fear as a result of these layoffs," she said, citing the Ford's government decision to recess the legislature for an extra-long summer break that will last until after the October federal election.

The Ford government, elected in June 2018, submitted a list in May of 49 infrastructure projects in northern and remote areas that it would like to see built with federal support.

The Ontario government also has sought federal money to begin work on Toronto expansions like the proposed Yonge-North subway extension, the Ontario Line (relief line) project in Toronto's east end, improvements to the highly congested Bloor-Yonge station, an extension of mass transit in Scarborough and the SmartTrack commuter line as part of Toronto Mayor John Tory's transit plan. Those projects are part of the $28.5-billion transit plan Ford cited.

But Ottawa has said that, to this point, it has not received any formal applications or the business cases required for federal review and approval of these five major initiatives.

Champagne has called the Toronto expansions "more a presentation than a plan" and a series of "flashy pictures."

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July 10, 2019 at 10:43PM

‘We see Bank of Canada on hold for next couple of years’: What the economists say about Wednesday’s rate decision - Financial Post

‘We see the Bank of Canada on hold for next couple of year’: What the economists say about the rate decision

The Bank of Canada held interest rates steady and raised its second-quarter growth forecast as expected on Wednesday while highlighting the risks that trade wars posed to the global economy.

Here’s what the economists say:

Derek Holt, Scotiabank

The Bank of Canada “retained the neutral bias but (was) incrementally more dovish in terms of the whole package … it didn’t go as high on its Q2 GDP growth (forecast) as it might have at 2.3%.”

Sal Guatieri, BMO

“There was no clear signal of a move in interest rates in either direction. Canada is still somewhat optimistic that growth will pick up in Q2… though they’re still concerned about trade tensions, a slowing global economy.”

“The risks for policy are more even handed than for the Federal Reserve… The Bank of Canada still believes policy is still supporting expansion.”

“We still see Bank of Canada on hold for next couple of years. There’s probably a little greater chance of a rate cut if the Fed does see the need to cut rates more rapidly. We are anticipating a couple of rate cuts from the Fed. That could put upward pressure on the Canadian dollar the Bank of Canada might need to address by cutting rates.”

Andrew Kelvin, TD Securities

“A bit more cautious than I had expected. They are leaning a bit more heavily into the global pessimism angle, arguing that is going to constrain growth a bit more than expected going forward.”

“We still had the upgrade to 2019 but I think that was a pretty conservative upgrade given what we’ve seen in the data. So clearly the growing wave of negative sentiment around the globe is impacting the Bank of Canada’s view on the outlook. They remain very concerned with trade tensions and they are going to take a cautious approach going forward. We continue to look for the Bank of Canada to cut interest rates in January 2020.”

© Thomson Reuters 2019

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July 11, 2019 at 12:07AM

Eat Smart kale salad bags recalled over possible listeria contamination - Toronto Star

The Canadian Food Inspection Agency (CFIA) has issued a food recall warning for Eat Smart’s Sweet Kale Vegetable Salad Kit due to a possible listeria contamination.

Fresh Taste Produce Ltd. is recalling certain 794-gram bags of the salad kit with a best before date of July 17, 2019 and a UPC code of 7 09351 89140 3. The CFIA says anyone who bought the product, should not consume it.

The product has been distributed in Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island and Quebec, said the CFIA in their warning Tuesday.

The agency said test results triggered the recall and that they are conducting a food safety investigation — which could lead to the recall of other products.

Food contaminated with listeria monocytogenes will not look or smell spoiled, but can still make people sick, said the CFIA.

Consumers should check their homes for the recalled product, and throw them out or return them to the store they were purchased, they said. Anyone who believes they have become sicked from the recalled product should call their doctor.

Symptoms can include vomiting, nausea, persistent fever, muscle aches, severe headache and neck stiffness, said the CFIA. Pregnant women, the elderly and people with weakened immune systems are particularly at risk, they said.

In their recall warning on Tuesday, the CFIA said there has been no reported illnesses associated with the consumption of the product so far.

Emma Sandri is a breaking news reporter, working out of the Star’s radio room in Toronto. Follow her on Twitter: @emmarosesandri

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July 10, 2019 at 06:56PM

Legal pot price as much as 80 per cent more than illicit: StatCan - CTV News

The average cost of a gram of cannabis from the illicit market continues to drop as legal prices rise -- with authorized retailers charging as much as 80 per cent more, according to an analysis by Statistics Canada.

The government agency said Wednesday that the average price of an illegal gram of pot was $5.93 in the second quarter, down from $6.23 in the previous quarter and $6.51 in the prior quarter.

The cost of a legal gram of weed, however, was $10.65, up from $10.21 in the previous quarter and $9.82 in the fourth quarter of 2018, based on self-submitted quotes.

At $10.65, legal cannabis in the second quarter is roughly 80 per cent more costly than the $5.93 price tag on illicit weed.

"The share of respondents who reported purchasing illegally due to 'legal cannabis being too expensive' rose from 27 per cent in the first quarter of 2019, to 34 per cent in the second quarter," the Ottawa-based agency said in a release.

Statistics Canada based these conclusions on price quotes gathered using the StatsCannabis crowdsourcing application between April 1 and June 30. Out of 697 price submissions, 572 of were deemed plausible, it said.

Overall, based on these voluntary submissions, the average price per gram of cannabis fell to $7.87 from $8.03 in the previous quarter, largely attributed to lower reported illegal prices.

The share of StatsCannabis respondents purchasing pot illegally rose to 59 per cent during the quarter, up from 55 per cent in the first quarter.

Statistics Canada urged caution when interpreting the data, as the quotes are self-submitted and the number of responses are limited.

The agency also analyzed cannabis prices obtained from the websites of illegal online cannabis retailers, excluding illicit storefronts.

This data, which Statistics Canada has been collecting since May 2018, was gathered in order to support research and validate price information collected via StatsCannabis, the agency said.

Based on 423,000 price quotes collected over the period -- an average of 32,500 per month -- the average price per gram of dried cannabis was $8.44 during the second quarter of this year, down from $8.61 in the first quarter, Statistics Canada said.

The trends observed in website price data generally align with the quotes collected through the StatsCannabis application, but indicate that the price levels are generally higher online than what is reported via crowd-sourced quotes, it added.

"The higher prices are not out of line with the StatsCannabis data since online retailers would have higher overhead costs than other illegal sources," the agency said.

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July 11, 2019 at 01:19AM

CannTrust pot products pulled from Ontario stores amid Health Canada fracas - BNNBloomberg.ca

CannTrust Holdings Inc.'s (TRST.TO) recreational cannabis products have been pulled from the shelves of Canada's biggest pot market, the latest blow to the company after Health Canada said it was non-compliant with certain regulations. 

Daffyd Roderick, director of communications for the Ontario Cannabis Store, the province's online retailer and wholesale distributor to pot stores, confirmed that CannTrust's products weren't available for sale. 

"Due to the Health Canada temporary hold on certain CannTrust cannabis products, OCS has voluntarily removed all affected products from distribution pending the outcome of the investigation," Roderick said in an email to BNN Bloomberg. 

Roderick declined to specify what specific products were impacted or how much of CannTrust's cannabis was removed, but confirmed the OCS has stopped distributing the company’s products to authorized retail stores in the province. Screenshots distributed on social media that were unverified by BNN Bloomberg show three CannTrust products have been removed from the OCS website, but other products sold by the company are also currently unavailable for sale.

CannTrust's shares have plunged almost 27 per cent on the Toronto Stock Exchange since Monday when the company disclosed an inspection by Health Canada identified several unauthorized activities by the pot producer, such as producing thousands of kilograms of cannabis in unlicensed rooms before it had obtained the necessary approvals from the federal regulator. 

As a result, Health Canada ordered 5,200 kilograms of unlicensed cannabis to be placed on hold while CannTrust has voluntarily placed an additional 7,500 kilograms of dried cannabis equivalent produced in previously unlicensed rooms at its Vaughan, Ont. facility on hold as well.

A CannTrust spokesperson told BNN Bloomberg in an emailed statement that the company has been "communicating transparently with the provinces and is providing them with the information and support they need to make decisions regarding product available to consumers while Health Canada conducts their investigation." 

Other provinces such as British Columbia and Alberta are still selling CannTrust products despite Health Canada's investigation into the illegally-grown pot. 

Viviana Zanocco, manager of corporate communications for the B.C. Liquor Distribution Branch, which is the province's wholesale distributor of cannabis, said CannTrust has notified the organization of Health Canada's non-compliance finding. 

"Until such time as Health Canada issues a recall, or we receive further direction from the supplier, we will continue to supply CannTrust’s product to retail stores and to customers directly via our online B.C. Cannabis Store," Zanocco told BNN Bloomberg in an email. 

A spokesperson for Quebec's cannabis distributor said it is not selling CannTrust products because the company's cannabis has yet to be thoroughly vetted by the province's quality-control authority. Distributors in Atlantic Canada, Saskatchewan and Manitoba weren't immediately available for comment. 

While CannTrust stated on Monday it is unclear what the financial impact will be for the company in light of Health Canada's actions, one analyst expects the Vaughan, Ont.-based firm to source future product from third-party producers to continue meeting provincial purchase orders. 

"Given the well-reported supply shortages in the Canadian market, this could prove costly," said Russell Stanley, cannabis analyst at Beacon Securities, in a note to clients Tuesday. Stanley slashed his price target on CannTrust to $5.25 from $15.00 while downgrading his rating to "hold" from "buy." 

Cannabis Canada is BNN Bloomberg’s in-depth series exploring the stunning formation of the entirely new – and controversial – Canadian recreational marijuana industry. Read more from the special series here and subscribe to our Cannabis Canada newsletter to have the latest marijuana news delivered directly to your inbox every day.

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July 10, 2019 at 08:46PM

Defiant Fed boss says Trump won't make him quit - BBC News

The world's most powerful central banker has brushed off criticism from Donald Trump, saying he would not step down if the US president asked him to.

Federal Reserve chairman Jerome Powell told a hearing in Washington: "The law gives me a four-year term and I fully intend to serve it."

Mr Trump has criticised the Fed for not cutting interest rates.

But the president could soon get his wish, as Mr Powell also hinted at a cut soon to bolster the US economy.

Mr Powell is giving evidence to the House of Representatives Financial Services Committee, the first of two days of testimony on Capitol Hill.

He and the Fed have faced sustained criticism for not cutting rates, which Mr Trump blames for unnecessarily slowing the US economy. "Our Federal Reserve doesn't have a clue!" was one of the president's tweets.

Asked at Wednesday's hearing if Mr Powell would step down if requested, he replied "no". Pressed on whether he thought the president did not have the authority to remove him, he said: "What I have said is the law gives me a four-year term and I fully intend to serve it."

Disagreement over interest rate policy could ease, however, as Mr Powell signalled that a cut could come soon in remarks that sent the S&P 500 surging past 3,000 points for the first time and prompting a fall in the dollar.

He told the committee that "uncertainties about the outlook have increased in recent months". Although he expected continued US growth, he warned of economic weakness in other major economies, and a downturn in business investment driven by trade war worries.

"Concerns about the strength of the global economy continue to weigh on the US outlook," Mr Powell said.

"Apparent progress on trade turned to greater uncertainty, and our contacts in business and agriculture reported heightened concerns over trade developments."

The comments come despite last week's strong US jobs figures and an easing of trade tensions with China.

Analysis by Andrew Walker, BBC economics correspondent

As ever in a Federal Reserve Chair's remarks, there was no commitment to cut interest rates.

But the emphasis on economic uncertainties and below target inflation suggests an increasingly high probability that the Fed will do just that.

The concerns he raised included weaker momentum in some foreign economies which could affect the US. He also mentioned "government policy issues that have yet to be resolved".

His reference to trade developments was partly about the tension between the US and China. But there was one item on this list that isn't for the US to address- Brexit.

He didn't spell out the reasons, but the fact that he flagged it up indicates a concern that the UK's departure from the EU might have an adverse impact on the US economy.

The Fed has kept its current benchmark overnight interest rate in a range of between 2.25% and 2.50% since December. Mr Powell had first opened the door to a rate cut in comments made last month.

"Powell is setting it up, certainly for a July rate cut," said Jack Ablin, chief investment officer at Cresset Capital.

And Briefing.com analyst Patrick O'Hare said Mr Powell's comments "gave the market what it was looking for".

The financial markets are indicating that the Fed at its 31 July meeting will cut interest rates by 25 basis points, although some analysts have seen the possibility of a larger cut.

His appearance on Capitol Hill comes at a sensitive time for both the Fed and Mr Powell personally, with President Donald Trump lashing out in a series of tweets for not cutting interest rates and needlessly slowing the economy.

At the same time, some blame Mr Trump's own policies, in particular higher tariffs and his unpredictable approach to policymaking, for increasing the economic risks.

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2019-07-10 16:52:28Z
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S&P 500 hits 3,000 as Powell's comments raise rate cut bets - One America News Network

Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., July 1, 2019. REUTERS/Brendan McDermid

July 10, 2019

By Medha Singh

(Reuters) – The benchmark S&P 500 briefly crossed the 3,000 points mark for the first time on Wednesday, as bets for a sharp interest rate cut later this month were boosted by Federal Reserve chairman Jerome Powell’s dovish comments.

The Nasdaq and the Dow Jones Industrials also hit all-time highs after Powell said the central bank stands ready to “act as appropriate” to support record U.S. economic growth.

Gains of near 1% each in Amazon.com, Apple Inc and Facebook Inc also lifted the Nasdaq and the S&P.

“Investors already got what they wanted when Powell’s statement was released. They got news that the Fed was ready to cut (interest rates) in July,” said Michael Antonelli, market strategist at Robert W. Baird in Milwaukee.

“What the bulls are really hoping for is that this is just a growth scare. That the Fed steps in with an insurance cut in July and that’s it, so the economy can continue at its ‘muddle-along’ pace of growth.”

Alluding to the strong jobs data that tempered hopes of a sharp rate cut at the end of the month, Powell said the report did not fundamentally change the central bank’s outlook and that there is important economic data before the meeting.

Traders raised the chances of a 50 basis point reduction to 23% following the comments, according to the CME Group’s FedWatch tool. They had nearly abandoned hopes of an aggressive reduction while still expecting the first U.S. rate cut since the financial crisis at the July 30-31 meeting.

Investors will now parse minutes from the Fed’s June policy meeting when it will be released at 2 p.m. ET.

At 11:06 a.m. ET, the Dow Jones Industrial Average was up 71.72 points, or 0.27%, at 26,855.21, the S&P 500 was up 9.57 points, or 0.32%, at 2,989.20. The Nasdaq Composite was up 37.25 points, or 0.46%, at 8,178.98.

Nine of the 11 major S&P sectors were higher, with energy, technology and communication services leading the gainers.

Energy stocks benefited from a jump in oil prices as U.S. crude inventories shrank more than expected and major producers evacuated rigs in the Gulf of Mexico ahead of an expected storm.

Shares of rate-sensitive banks retreated 0.89% after Powell’s comments. The financial sector shed 0.3%.

Generic drugmaker Mylan NV’s shares fell 4% after rival Amneal Pharmaceuticals Inc cut its 2019 core earnings forecast.

Advancing issues outnumbered decliners by a 1.76-to-1 ratio on the NYSE and by a 1.04-to-1 ratio on the Nasdaq.

The S&P index recorded 63 new 52-week highs and one new low, while the Nasdaq recorded 78 new highs and 28 new lows.

(Reporting by Medha Singh, Manas Mishra and Shreyashi Sanyal in Bengaluru; Editing by Sriraj Kalluvila)

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2019-07-10 15:45:00Z
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