News
Canada’s Q2 Economy Surges Past Expectations, Yet Rate Cuts Still Likely
Canada’s economy showed a surprising uptick in growth during the second quarter of 2024, but the overall outlook remains cautiously optimistic as the Bank of Canada (BoC) prepares for another potential interest rate cut.
On Friday, Statistics Canada reported that the annualized growth for the second quarter came in at 2.1%. This figure surpassed both the 1.6% anticipated by market analysts and the Bank of Canada’s own forecast of 1.5%.
The better-than-expected growth was bolstered by increased government expenditure, higher business investments, and a rise in consumer spending on services.
Challenges Ahead: Stagnation and Rate Cut Predictions
Despite the robust growth figure for the second quarter, signs of economic weakness are emerging. June’s economic performance was flat, and preliminary estimates suggest there was no growth in July. This stagnation highlights underlying issues that are likely to influence the BoC’s monetary policy decisions.
“Weak momentum heading into the third quarter gives ample reason for the BoC to continue cutting interest rates,” said Andrew Grantham, senior economist at CIBC Capital Markets.
The GDP data is the last major economic report before the BoC’s upcoming monetary policy decision, and it is widely expected that the central bank will cut its benchmark rate for the third time in a row on September 4.
Market Expectations and Economic Indicators
Financial markets have increased their expectations for a rate cut, now predicting an 80% chance of a 25 basis point reduction, up from 77% before the data release. Beyond the immediate cut, markets forecast two additional rate reductions later in the year.
Doug Porter, chief economist at BMO Capital Markets, described the GDP report as “roughly neutral” from the BoC’s perspective.
He noted that while the data does not drastically alter the broader economic picture, the ongoing challenges underscore the need for continued monetary easing.
Sectoral Contributions and Per Capita Performance
The second quarter’s growth was driven primarily by increased government spending, which rose by 1.5% due to higher wages, and a notable 6.5% surge in business investment in machinery and equipment.
However, on a per capita basis, GDP continued to contract for the fifth consecutive quarter, reflecting persistent economic strain on individual Canadians.
The Canadian dollar saw a slight increase, rising 0.1% to C$1.3467 against the U.S. dollar, or 74.26 U.S. cents, following the release of the data. Additionally, the growth rate for the first quarter was revised upward to 1.8% from the previously reported 1.7%.
Looking Ahead
Most economic indicators point to a slowing economy, with rising unemployment and a wave of mortgage renewals expected to exert additional pressure on the central bank.
In July, BoC Governor Tiff Macklem hinted at a shift in focus towards stimulating the economy rather than merely controlling inflation, signaling a change in strategy in response to weakening economic conditions.
The Bank of Canada has already reduced its benchmark rate twice since June, bringing it down to 4.5%. As the central bank navigates these challenges, its forthcoming decisions will be crucial in shaping the economic landscape for the remainder of the year.
News
Trudeau Rocks to Taylor Swift While Montreal Burns
Prime Minister Justin Trudeau has come under fire yet again after a video surfaced on X, showing him dancing at a Taylor Swift performance while anti-Nato protestors ransacked downtown Montreal.
Trudeau attended Taylor Swift’s concert in Toronto on Friday night. Before Taylor Swift approached the stage, X shared a viral video of him dancing and singing along to the song “You Don’t Own Me.”
The image of Trudeau dancing amid violent protests in Montreal generated widespread indignation online. Some social media users even compared Trudeau to the ancient Roman dictator Nero, known for “fiddling while Rome burned.”
Don Stewart, a Member of Parliament (MP) representing part of Toronto, called out the prime minister in a post on X.
Lawless protestors run roughshod over Montreal in violent protest.
The Prime Minister dances.
This is the Canada built by the Liberal government.
Bring back law and order, safe streets and communities in the Canada we once knew and loved. pic.twitter.com/PVJvR6gtmf
— Don Stewart (@donstewartmp) November 23, 2024
“Lawless protesters run roughshod over Montreal in violent protest. The Prime Minister dances,” Stewart wrote. “This is the Canada built by the Liberal government.”
“Bring back law and order, safe streets and communities in the Canada we once knew and loved,” the MP added.
On Saturday, the day after Taylor Swift’s concert, Trudeau condemned the anti-NATO protests, calling them “appalling.”
Anti-NATO activists set off smoke bombs and marched through Montreal’s streets waving Palestinian flags. According to the Montreal Gazette, rioters set fire to automobiles and battled with police.
Pro-Palestinian protests
Protesters also tossed tiny explosives and metal objects at officers. At one point, the mob torched an effigy of Israeli Prime Minister Benjamin Netanyahu. Police used tear gas and batons to disperse the gathering, and three persons were arrested for attacking officers and impeding police operations.
Masked protesters were seen burning flares and bashing storefront windows in videos and photographs shared on social media. Pro-Palestinian protests have been taking place across Canada since the Israel-Gaza conflict began late last year.
Critics have lambasted Trudeau for doing nothing to stop the violent pro-Palestinian marches, with some claiming he has fueled anti-Israel sentiment in Canada.
On Friday, Trudeau stated that Canada would respect the orders of the International Criminal Court (ICC), which issued an arrest warrant for Mr Netanyahu, even if it meant arresting the Israeli prime leader on Canadian soil.
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News
Calgary Zoo Admits Human Error in Death of Baby Gorilla
The Calgary Zoo has admitted in a public statement that a zookeeper’s negligence caused the death of a 2-year-old baby gorilla. Eyare, a newborn gorilla, died last week after being slammed in the head by a hydraulic door.
The accident occurred when a zoo worker attempted to separate Eyare from the rest of the gorilla tribe for a solitary training session.
The gorilla died from significant head injuries, according to the zoo’s statement.
“This tragedy has struck us all in the deepest way imaginable,” Colleen Baird, director of animal care at the Calgary Zoo, said during a news conference. “Eyare’s brief but meaningful existence gave so much joy to our community, and all will sorely miss her. We will do everything possible to prevent repeat accidents.”
According to Baird, the staff member involved was immediately removed from the workplace and will be reassigned to another area of the zoo. The Calgary Zoo stated that it would take preventive steps, such as specialist personnel training and animal behavioral training, to avoid a similar incident.
Calgary Zoo Questioned
It is not the first time an animal at the zoo has died from negligence at the Calgary Zoo. A capybara was accidentally crushed by a hydraulic door similar to the one that killed Eyare in 2019.
An otter died in 2016 after being entangled in an “unauthorized” pair of jeans that a zookeeper had dropped in its enclosure. In 2013, a penguin died in “a freak accident” after swallowing a stick.
Animal Justice, a Canadian group that promotes animal welfare, has called for an independent investigation of animal safety and oversight at the Alberta facility.
“The Calgary Zoo appears to have a higher rate of animal deaths compared to other zoos, and in light of Eyare’s death there should be a systematic review of the zoo’s operations and practices, conducted transparently by the government or another outside party,” according to Camille Labchuk, the executive director of Animal Justice.
The Calgary Zoo refuted that it has more animal deaths than other zoos, emphasizing that it adheres to operating requirements and has maintained accreditation by the Association of Zoos and Aquariums’ independent Accreditation Commission since 1978.
“We love and care for more than 4,000 animals representing over 100 species that call our zoo home,” stated a Calgary Zoo representative.
“Human error-related deaths in animals are quite infrequent. We have lost two animals in the last ten years: a North American river otter in 2016 and ‘Eyare’ this week.
While rare, even one human-caused death is too many. These unfortunate instances have served as vital learning experiences, prompting us to examine and tighten protocols to provide the greatest level of care.”
Baird said at the news conference that using hydraulic doors is “common practice with accredited zoos,” adding that the facility will consider switching to alternate doors to improve safety.
The Calgary Zoo, which established the Wilder Institute in 2021, caters to nearly 4,000 creatures, including six more western lowland gorillas.
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News
Canada’s Lotto Max Jackpot Climbs to $80M
Lotto Max in Canada has reached $80 million for only the second time in Canadian lottery history. Friday’s draw sought a winner for a $75 million pool, but the top reward remained unclaimed as of Saturday, increasing the jackpot.
Only once did the jackpot reach $80 million in September, when it broke the previous record. Before that, the prize was $75 million, a record.
The Lotto Max prize maximum was boosted earlier this year, enabling for jackpots of more than $70 million. The cap is now at $80 million.
While a greater fee may encourage more people to play, the odds of winning the lottery remain extremely low.
According to the Ontario Lottery and Gaming Corporation, the odds for a $5 ticket are around one in 33,294,800.
While there was no jackpot winner in Friday’s draw, someone did match six of the seven winning numbers, plus a bonus, earning them a payout of more than $320,000.
Lotto Max History
Lotto Max is one of three national lottery games in Canada, overseen by the Interprovincial Lottery Corporation. The game was introduced on September 19, 2009, and its inaugural draw occurred on September 25, 2009. It replaced Lotto Super 7.
The odds of winning the Lotto Max are 1 in 33,294,800. This is correct to a point but misleading.
Let’s have a look at the rules:
- Players choose 7 numbers out of 50
- Numbers cannot be repeated
- Numbers are automatically sorted into ascending order
- Each play buys 3 lines
- Each play costs $5
Seeing that players choose 7 out of 50 non-repeating numbers, the equation for the total number of possible combinations (this is different from permutations where the order in which the numbers appear is significant) when playing the Lotto Max is 50! / (7! x 43!)
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