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The Bad Economic Times Have Only Just Started for Canada

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The Bad Economic Times Have Only Just Started for Canada

Canada’s economic woes have only just begun, despite recent signs of moderation in both GDP and job growth. The agony that Canadians are currently facing due to inflation is only going to intensify, thanks to Trudeau.

There will be a tough spell in the Canadian economy. The rate of expansion has slowed dramatically. Job creation has slowed down. The rate of inflation has not decreased. However, the suffering that families are experiencing now will only intensify.

In a note, Desjardins associate in macro strategy Tiago Figueiredo expressed pessimism about the future.

The economy held up better than predicted for a time there. The interest rate increases from the Bank of Canada accumulated. The economy and the number of available employment both improved even so.

The economy was bound to suffer, though. Rising loan rates and skyrocketing inflation have been devastating to families. Now, economists are seeing signs of instability in the data, and they anticipate this to worsen. the second quarter of this year saw a decline in GDP.

This week, economists will have a better idea of whether or not the economy shrank further in August after showing no growth in July. Reasons for this include natural disasters and labour disputes like the B.C. port strike.

Canada's economy

Canada’s economy had already lost steam before that happened.

If that happens, Canada will officially be in a recession because the official definition requires two consecutive quarters of negative growth.

Manulife Investment Management’s global head economist and strategist Frances Donald has argued that we should stop discussing the name of this economic downturn and instead concentrate on how it will affect individuals.

“Even if there are technical factors that avert two quarters of negative GDP, this economy will feel like a recession to most Canadians, for the next year,” she said to CBC News.

Several variables, according to experts, are hiding the true severity of the economic downturn. As a first point, it takes the economy around a year and a half to fully reflect the effects of changes in interest rates.

Seventeen months ago, the Bank of Canada started its cycle of rate increases. That implies we haven’t seen the full effect of Canada’s fastest, most aggressive interest rate increasing cycle yet.

Second, the pandemic altered consumption habits, which have yet to return to pre-pandemic levels of predictability. Canadians made significant purchases during lockdowns due to pandemic fears. We scooped up exercise tools, televisions and hoover cleaners. These same families are now investing mostly on activities rather than material goods.

Canada's economy

New data on retail sales shows an increase in July and a decline in August. When so many external forces are tugging at and pushing on consumers, it can be difficult to tell how much of what’s happening is cyclical or seasonal.

Inflation and rising borrowing costs are dampening discretionary consumer spending. Another evidence of slow growth for the Canadian economy at a time when the Bank of Canada is dealing with inflation that’s higher than expected, BMO senior economist Robert Kavcic Said.

An extraordinary increase in immigration looms over all the data and shifts. In just the past year, Canada has seen an influx of over a million new residents. This has boosted consumption, but it has also hidden some structural flaws.

According to Donald, those things have helped make the economy look better than it is.

We are in the time just after the Titanic struck the iceberg, but before it sank. When we’ve had a shock, but it hasn’t been too bad,” Donald explained.

The Bank of Canada has temporarily stopped raising interest rates. The central bank, however, cautioned that this would be conditional on continued inflation reduction efforts.

Canada

Fortunately, the Titanic economy isn’t the only one we can save by cutting interest rates.

Since then, inflation has surged to unprecedented heights. The price of everything went up, not just petrol and mortgage rates this time. All of the so-called core measures of inflation, which exclude more erratic factors like the cost of petrol, increased or remained stable.

Scotiabank’s vice president and head of Capital Markets Economics, Derek Holt, calls the breadth of August’s pricing pressures “astounding.” He claims that 52 percent of the items in the consumer price index basket are increasing by four percent on an annualised basis from one month to the next. Almost two-thirds have seen gains of more than 3%.

According to him, the most recent numbers cast doubt on the foundational beliefs individuals have held about the economy.

As the saying goes, “inflation is cooling.” They attribute it entirely to increases in the price of petrol and mortgage interest rates. They say the government’s (fuzzy) “plan” is successful.

They claim that it’s clear the Bank of Canada will not raise rates again. In a note to customers, he called it all “complete, utter, rubbish.”

According to Holt, “definitely ups the odds of a rate hike” at the next FOMC meeting in October because of the recent acceleration in inflation readings.

Bank of Canada

Sharon Kozicki, the Bank of Canada’s deputy governor, spoke publicly this week and described the central bank’s predicament.
“Rate reductions are still a ways off.”

If we don’t take action now, we’ll have to take even more action later. She warned attendees at a Regina luncheon that excessive austerity could have unintended consequences for the economy.

Some inflationary swings, she added, were “not uncommon,” and that previous rate hikes “will continue to weigh” on economic growth.

Nothing of it is novel. The central bank has spent the better part of the last year and a half discussing the trade-offs involved in preventing inflation from becoming entrenched, while also avoiding doing too much and creating more pain than is required.

Economists like Donald, though, argue that things have changed as the central bank considers when and how it will have to look at bringing rates back down to lessen the burden on people.

“Rate reductions are still quite a ways off,” she said. However, the exit ramp was seen far off in the distance. And the Bank of Canada is working to broaden that exit ramp so they have some leeway if they ever need it.

In her opinion, rates will begin to drop again in the first half of 2019.

“But for a lot of Canadians, there’s… a lot of pain to get through,” Donald remarked.

Geoff Thomas is a seasoned staff writer at VORNews, a reputable online publication. With his sharp writing skills and deep understanding of SEO, he consistently delivers high-quality, engaging content that resonates with readers. Thomas' articles are well-researched, informative, and written in a clear, concise style that keeps audiences hooked. His ability to craft compelling narratives while seamlessly incorporating relevant keywords has made him a valuable asset to the VORNews team.

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Using AI, Mastercard Expects To Find Compromised Cards Quicker, Before They Get Used By Criminals

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Mastercard | AP news Image

NEW YORK  — Mastercard said Wednesday that it hopes to detect that your credit or debit card number has been compromised long before it falls into the hands of a cybercriminal.

Mastercard’s most recent software upgrade incorporates artificial intelligence into its fraud-prediction system, which it hopes will allow banks to replace stolen cards before criminals use them.

“Generative AI is going to allow us to figure out where you possibly got your credentials compromised, how we can identify how it happened, and how we can very quickly remedy that situation not only for you, but also for other customers who don’t know they are compromised yet,” said Johan Gerber, executive vice president of security and cyber innovation at Mastercard, in an interview.

mastrcard

Mastercard | Investopedia Image

Using AI, Mastercard Expects To Find Compromised Cards Quicker, Before They Get Used By Criminals

Mastercard, based in Purchase, New York, says that with this new update, it can use other patterns or contextual information, such as geography, time, and addresses, and combine it with incomplete but compromised credit card numbers that appear in databases, allowing it to reach cardholders sooner and replace the bad card.

The patterns can now be applied in reverse, potentially employing batches of faulty cards to identify potentially hacked businesses or payment processors. According to Gerber, pattern identification goes beyond what humans can perform with database queries or other typical approaches.

Billions of stolen credit and debit card numbers are floating on the dark web, ready for purchase by any thief. Most were stolen from merchants in data breaches over the years, but a substantial number were stolen from unwary customers who used their credit or debit cards at the incorrect gas station, ATM, or online shop.

These compromised cards may go undiscovered for weeks, months, or even years. Only when the payment networks themselves dig into the dark web to look for stolen numbers, a merchant discovers a breach, or a criminal uses a card do the payment networks, and banks realize a batch of cards may be compromised.

mastercard

Mastercard | Youtube Image

Using AI, Mastercard Expects To Find Compromised Cards Quicker, Before They Get Used By Criminals

“We can now actually proactively reach out to the banks to make sure that we service that consumer and get them a new card in her or his hands so they can go about their lives with as little disruption as possible,” Gerber stated.

The payment networks are primarily attempting to transition away from “static” credit card or debit card numbers — card numbers and expiration dates that are used consistently across all businesses — and toward unique numbers for specific transactions. However, that transformation could take years, especially in the United States, where payment technology uptake is typically slow.

While chip cards are currently used in more than 90% of all in-person transactions worldwide, EMVCo, the technological body behind the chip in credit and debit cards, estimates that the proportion in the United States is closer to 70%.

Mastercard

Mastercard | Mastercard Image

Using AI, Mastercard Expects To Find Compromised Cards Quicker, Before They Get Used By Criminals

Mastercard’s announcement comes as its main competitor, Visa Inc., looks for ways to force users to discard their 16-digit credit and debit card numbers. Visa revealed big changes to how credit and debit cards will work in the United States last week, implying that Americans will carry fewer physical cards in their wallets and that the 16-digit credit or debit card number inscribed on each card will become less relevant.

SOURCE – (AP)

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Group Of Tesla Shareholders Ask Investors To Vote Against Musk’s Compensation Package

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Tesla | AP Image

A group of Tesla shareholders is urging investors to vote against CEO Elon Musk’s compensation package worth more than $40 billion, arguing that it is not in the company’s best interests.

Tesla is grappling with declining global sales, sluggish electric car demand, an older model lineup, and a stock price that has fallen 30% this year.

The shareholder group, which includes New York City Comptroller Brad Lander, SOC Investment Group, and Amalgamated Bank, stated in a letter to shareholders that ratifying Musk’s pay deal will not positively impact Tesla’s long-term growth and stability.

tesla

Tesla | Reddit Image

Group Of Tesla Shareholders Ask Investors To Vote Against Musk’s Compensation Package

There is also concern that ratifying the remuneration package may result in litigation alleging corporate waste. According to the letter, Musk is perceived as a part-time CEO at Tesla, with his time increasingly being spent on other business commitments.

“Shareholders should not believe that this reward has any incentive effect—it does not. “What it does have is an excessiveness problem, which has been obvious since the beginning,” the organization stated.

They highlighted that if shareholders approve the remuneration package, another plan may be proposed next year.

“Given Tesla’s history of exponentially larger awards, Musk may well ask for another award,” the organization stated.

The group also requests that investors vote against the reelection of board members Kimbal Musk, Elon Musk’s brother, and James Murdoch, a former executive at media conglomerate Twenty-First Century Fox

Tesla urged shareholders this month to reinstate Musk’s $56 billion pay plan, which a Delaware judge had earlier this year rejected. At the time, it also requested that the company’s headquarters be moved to Texas.

tesla

Tesla | AP News Image

Group Of Tesla Shareholders Ask Investors To Vote Against Musk’s Compensation Package

Stockholders will vote on the measures at the June 13 annual meeting.

In a statement to shareholders published in a regulatory filing last month, Chairperson Robyn Denholm stated that Musk has delivered on the automaker’s growth expectations. Tesla meets all of the stock value and operational benchmarks outlined in the 2018 shareholder package. Shares have been up 571% since the pay package began

“Because the Delaware Court second-guessed your decision, Elon has not been paid for any of his work for Tesla for the past six years that has helped to generate significant growth and stockholder value,” Denholm stated in a letter. “That strikes us — and the many stockholders from whom we already have heard — as fundamentally unfair, and inconsistent with the will of the stockholders who voted for it.”

Tesla reported record deliveries of more than 1.8 million electric vehicles worldwide in 2023, but the value of its stock has fallen sharply this year as EV sales have slowed.

The business said it shipped 386,810 automobiles from January to March, about 9% fewer than last year. Future growth is still being determined, and convincing shareholders to support a large pay package in a growing global competition may be difficult.

tesla

Tesla | Tesmian Image

Group Of Tesla Shareholders Ask Investors To Vote Against Musk’s Compensation Package

Last year, Tesla reduced the costs of some models by up to $20,000. The price decreases caused the prices of used electric vehicles to fall, reducing Tesla’s profit margins.

In April, Tesla said it laid off around 10% of its workforce, or 14,000 individuals

SOURCE – (AP)

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Studio Ghibli Takes A Bow At Cannes With An Honorary Palme D’Or

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Studio Ghibli | AP News Image

CANNES, France — The Cannes Film Festival honored Studio Ghibli, the Japanese cartoon factory of surreal ecological wonders that has captivated moviegoers for 39 years, with tales of Totoros, enchanted jellyfish, and floating castles, on Monday with an honorary Palme d’Or.

In the 22 years that Cannes has given out honorary Palmes, Ghibli’s prize was the first for anything other than an individual filmmaker or actor. (This year’s other winners include George Lucas and Meryl Streep.) Hayao Miyazaki, the 83-year-old animation genius who co-founded Studio Ghibli with Isao Takahata and Toshio Suzuki in 1985, did not attend the ceremony but spoke via video message from Japan.

ghibli

Studio Ghibli | AP News Image

Studio Ghibli Takes A Bow At Cannes With An Honorary Palme D’Or

“I don’t understand any of this,” Miyazaki replied. “But thank you.”

At Cannes, where standing ovations may last for hours, Ghibli’s envoys — Goro Miyazaki (son of Hayao) and Kenichi Yoda — received one of the festival’s most thunderous responses. Thierry Fremaux, Cannes’ creative director, walked across the platform of the Grand Théâtre Lumière to shoot the extended ovation, which he stated will be sent to Miyazaki via video.

“With this Palme d’Or, we’d like to thank you for all the magic you’ve brought to cinema,” said Iris Knobloch, the festival’s president, who presented the award.

ghibli

Studio Ghibli | AP News Image

Studio Ghibli Takes A Bow At Cannes With An Honorary Palme D’Or

The occasion was honored not with a new Ghibli picture but by four previously unreleased short films outside of Japan. “Mei and the Baby Cat Bus,” a minor sequel to Miyazaki’s 1989 film “My Neighbor Totoro,” grows the Cat Bus from that classic to a full fleet of cat conveyances, most notably the small Baby Cat Bus

The films were all created for the Studio Ghibli Museum outside Tokyo, including “Mr. Dough and the Egg Princess,” a culinary-themed desert for Miyazaki’s 2001 film “Spirited Away.” The other two—”House Hunting” and “Boro the Caterpillar”—create acoustic mini-adventures for forest critters.

Miyazaki’s long-awaited “The Boy and the Heron” won the Academy Award for Best Animated Feature in March, so the Studio Ghibli party came soon after. (A documentary on its making, “Hayao Miyazaki and the Heron,” was also shown at Cannes.)

ghibli

Studio Ghibli | AP News Image

Studio Ghibli Takes A Bow At Cannes With An Honorary Palme D’Or

Miyazaki also sat out at the ceremony. Goro Miyazaki, whose own films include “From Up on Poppy Hill” and “Tales From Earthsea,” revealed that they had to wrap the Oscar in a hotel towel before bringing it home to his father. On Monday, he was relieved that the Cannes prize is portable.

“I’m reassured seeing the Palme d’Or was in a box,” he remarked, smiling.

SOURCE – (AP)

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