Latest news with #DavidLjunggren
Yahoo
20-05-2025
- Business
- Yahoo
Canada's annual inflation rate in April drops to 1.7%, but core measures rise
By David Ljunggren OTTAWA (Reuters) -Canada's annual inflation rate in April fell to 1.7% from 2.3% in March as overall energy prices plunged 12.7% after the removal of a federal consumer carbon tax, Statistics Canada said on Tuesday. But two of the three core measures of inflation, which are closely watched by the Bank of the Canada, hit 13-month highs on underlying price pressures. Analysts had forecast the annual rate would dip to 1.6%. The Bank of Canada last month predicted it would fall to about 1.5%, mainly due to the removal of the carbon tax and lower crude prices. Gasoline prices fell by 18.1% from April 2024 while year-over-year prices for natural gas dropped 14.1%. Consumers though paid 3.8% more for groceries than they had done a year previously, up from 3.2% in March. Year over year, prices for travel tours rose 6.7% in April. On a month-by-month basis, inflation dipped by 0.1% compared to analysts' forecasts of a 0.2% drop. The data are the penultimate major release before Bank of Canada's next fixed rate announcement date on June 4. Statscan is due to release first quarter GDP figures on May 30. After seven consecutive cuts since last June the Bank held rates on April 16 while saying it would be ready to move decisively if needed to keep inflation under control. The bank pays particular attention to the core measures of inflation, which strip out the prices of more volatile items and do not take into account the removal of the carbon tax. CPI median, which shows the median inflation rate across CPI components, rose from 2.8% in March to 3.2% in April, the highest since March 2024. CPI trim, which excludes upside and downside outliers, edged up from 2.9% to 3.1%, also a 13-month high. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
Canada's annual inflation rate in April drops to 1.7%, but core measures rise
By David Ljunggren OTTAWA (Reuters) -Canada's annual inflation rate in April fell to 1.7% from 2.3% in March as overall energy prices plunged 12.7% after the removal of a federal consumer carbon tax, Statistics Canada said on Tuesday. But two of the three core measures of inflation, which are closely watched by the Bank of the Canada, hit 13-month highs on underlying price pressures. Analysts had forecast the annual rate would dip to 1.6%. The Bank of Canada last month predicted it would fall to about 1.5%, mainly due to the removal of the carbon tax and lower crude prices. Gasoline prices fell by 18.1% from April 2024 while year-over-year prices for natural gas dropped 14.1%. Consumers though paid 3.8% more for groceries than they had done a year previously, up from 3.2% in March. Year over year, prices for travel tours rose 6.7% in April. On a month-by-month basis, inflation dipped by 0.1% compared to analysts' forecasts of a 0.2% drop. The data are the penultimate major release before Bank of Canada's next fixed rate announcement date on June 4. Statscan is due to release first quarter GDP figures on May 30. After seven consecutive cuts since last June the Bank held rates on April 16 while saying it would be ready to move decisively if needed to keep inflation under control. The bank pays particular attention to the core measures of inflation, which strip out the prices of more volatile items and do not take into account the removal of the carbon tax. CPI median, which shows the median inflation rate across CPI components, rose from 2.8% in March to 3.2% in April, the highest since March 2024. CPI trim, which excludes upside and downside outliers, edged up from 2.9% to 3.1%, also a 13-month high. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Carney unveils cabinet aimed at resetting US-Canada ties
By Promit Mukherjee and David Ljunggren OTTAWA (Reuters) - Canadian Prime Minister Mark Carney, who won an election last month promising to stand up to U.S. President Donald Trump, unveiled a new cabinet on Tuesday that he said would help define a new relationship with the United States. Carney cut the number of ministers to 29 from the 39 under former Prime Minister Justin Trudeau, but kept some key players in their positions, such as Finance Minister Francois-Philippe Champagne and Dominic LeBlanc, who is in charge of U.S. trade. But he moved Melanie Joly from Foreign Affairs to Industry after four years and replaced her with Anita Anand. "Canadians elected this new government with a strong mandate to define a new economic and security relationship with the United States (and) to build a stronger economy," Carney's office said in a statement. "... This focused team will act on this mandate for change with urgency and determination." Chrystia Freeland, whose resignation as finance minister last December helped oust an increasingly unpopular Trudeau, keeps her job as minister of transport and internal trade. Former Goldman Sachs banker Tim Hodgson takes over as natural resources minister, replacing Jonathan Wilkinson, who was dropped from cabinet. Carney says Canada must spend billions to start shifting the economy's focus away from the United States and is also promising to reduce public spending. His immediate promises are a tax cut and ending all trade barriers among the 10 provinces by July 1. The Liberal platform, which promises additional spending of around C$130 billion ($92.85 billion) over the next four years, predicts that the 2025-26 deficit will be C$62.3 billion, far higher than the C$42.2 billion forecast in December. ($1 = 1.4001 Canadian dollars) (Writing by David Ljunggren; Editing by Rod Nickel)
Global News
12-05-2025
- Politics
- Global News
UN panel finds Russia responsible for downing Flight MH17 in 2014
The U.N. aviation council on Monday ruled that Russia was responsible for the downing of a Malaysian airliner over Ukraine in 2014 with the deaths of 298 passengers and crew, the Dutch government said. In a statement, it said the Council of the International Civil Aviation Organization would in the coming weeks consider what form of reparation was in order. Malaysian Airlines Flight MH17 departed from Amsterdam for Kuala Lumpur on July 17, 2014, and was shot down over eastern Ukraine as fighting raged between pro-Russian separatists and Ukrainian forces. In November 2022, Dutch judges convicted two Russian men and a Ukrainian man in absentia of murder for their role in the attack. Moscow called the ruling 'scandalous' and said it would not extradite its citizens. 2:00 Dutch court gives three men life sentences for downing of MH17 The ICAO, which is based in Montreal, did not immediately respond to a request for comment. The case was launched in 2022 by Australia and the Netherlands. Story continues below advertisement 'The decision is an important step towards establishing the truth and achieving justice and accountability for all victims of Flight MH17, and their families and loved ones,' Dutch Foreign Minister Caspar Veldkamp said in a statement. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'This decision also sends a clear message to the international community: states cannot violate international law with impunity.' The Netherlands and Australia want the ICAO Council to order Russia to enter into negotiations over reparations, he added. ICAO lacks regulatory power but holds moral suasion and sets global aviation standards overwhelmingly adopted by its 193-member states. –Reporting by David Ljunggren; Editing by Cynthia Osterman
Reuters
08-05-2025
- Business
- Reuters
Canadian financial system stable, but trade war poses big risks, says central bank
By Promit Mukherjee and David Ljunggren OTTAWA, May 8 (Reuters) - A prolonged trade war could increase the risks to Canadian financial stability by hurting banks and other institutions and making it harder for households and businesses to pay down debt, the Bank of Canada said on Thursday. In its annual Financial Stability Report, the central bank said the financial system was resilient. But the impacts of tariffs slapped by U.S. President Donald Trump on Canada and Ottawa's subsequent counter-tariffs could hurt financial stability, especially if it continues for a long period of time. "A long-lasting trade war poses the greatest threat to the Canadian economy. It also increases risks to financial stability," the bank said. The BoC said in the near term, the unpredictability of U.S. trade policy could cause further market volatility and strains on liquidity. In an extreme case, market volatility could turn into market dysfunction. In the medium to long term, a prolonged global trade war would have severe economic consequences, it added. Governor Tiff Macklem told reporters that the uncertainties were so great that "our analysis is not a projection, it is an assessment of vulnerabilities". If the trade war continues some households, especially those carrying higher levels of debt, might default on their payments, the bank said, adding the risk was concentrated mainly amongst households without a mortgage. This could hurt a strong banking system which has built a robust liquidity base and access to funds, the BoC said. "If credit losses occur on a large enough scale, banks could cut back on lending in response. Struggling households and businesses would have less access to credit to get through tough times. This cycle could exacerbate the economic downturn," it said. The BoC also highlighted a heightened risk from hedge funds which have been taking increasing exposure to Government of Canada bonds. In some cases they have bought almost half of all the auctions of government bonds. But a bulk of their purchases is supported by debt, making them more likely to pull back from the market in periods of stress, threatening the bond market. As interest rates started coming down in Canada last year, overall level of household debt dropped and insolvencies amongst businesses fell, and banks and non-bank financial institutions increased ability to absorb shocks. Those households with a mortgage who will be renewing this year or next are generally in a more resilient position to make payments due to lower interest rates, but if impacted by job loss or loss of income, some households might be hit. This scenario could be repeated among businesses too, the bank said, adding that those with existing vulnerabilities such as high leverage, weak profitability and low cash reserves are at risk of falling behind on debt payments. ((Reuters Ottawa bureau)) Keywords: CANADA CENBANK/
