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Written By: Benjamin Pipicelli and Noel Tom Paul
Canada’s Economy at a Glance
Economics Society News, Events, and Articles
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News and Noteworthy
Exclusive – Elon Musk reached out to EU industry chief to pledge content policing compliance
With Elon Musk’s recent acquisition of the popular social media app Twitter, Musk has assured the European Commission that Twitter will abide by strict European rules on illegal online content policing, despite Musk’s clear desire for a more laissez-faire approach to content. The self-proclaimed free speech absolutist agreed to hold a meeting with the former French finance minister, Breton, in the coming weeks. In a video posted on Twitter by Breton after meeting with Musk in May, the EU official says he explained the Digital Services Act to Musk in great detail. “It fits pretty well with what you think we should do,” Breton said. “I think it’s exactly aligned with my thinking”. Read more.
Canada’s oil industry wants ‘even footing’ with Americans on carbon capture
Canada’s oil industry says government incentives to build carbon capture projects are “much more generous” in the U.S., a gap the largest companies hope the Feds will narrow in its promised response to the U.S. Inflation Reduction Act (IRA) passed this past August. Finance Minister Chrystia Freeland said that Canada needs to respond to certain elements of the climate spending-heavy IRA. Natural Resouce Minister Jonathon Wilkinson said that the US$369 billion in public money earmarked by U.S. lawmakers for energy security and climate change has “created a playing field that is not levelled” between the two nations. Read more.
Air Canada narrows loss to $508 million in quarter that saw demand surge
Air Canada reported a narrower loss in the third quarter of the year as it more than doubled the number of passengers it flew through a busy but chaotic summer travel season. With a reported net loss of $508 million in the 3-month period ending Sept. 30, or $1.42 per diluted share, which is less than the $640 million loss or $1.79 per diluted share that it reported the same quarter last year. Operating revenue doubled to $5.322 billion in the third quarter from the $2.1 billion earned last year. This is the first time operating income has been positive since the COVID-19 pandemic began which is linked to the return of travel. Key operational metrics are also back to pre-pandemic levels which is a sign that Air Canada is emerging as more resilient, adaptable, and stronger. Read more.
Student loan interest relief and more: What’s new in the fall economic statement?
Some relief could be on the way for Canadians with student loans, thanks to a new measure tabled in the federal government’s fall economic statement (FES) on Thursday. The elimination of interest on student loans is just one of the new measures outlined in the document, which contends with worrying global economic trends and aims to keep its “powder dry” with prudent spending. “I am confident we have struck the right approach in general and in this fall economic statement,” said Finance Minister and Deputy Prime Minister Chrystia Freeland on Thursday. “What we’re announcing today is to strike a balance between necessary compassion and support for Canadians, and fiscal responsibility.” Read more.
Amazon pauses corporate hiring over economy concerns
Amazon is pausing hiring for its corporate workforce, the latest move by the company to cut costs amid worries about the wider economic environment. Company executives have decided to halt “new incremental hires” for the entire corporate workforce and anticipate the pause to be in place for a few months, Beth Galetti, the senior vice president of people experience and technology, said in a memo posted on Amazon’s website on Thursday. The company “will continue to monitor what we’re seeing in the economy and the business to adjust as we think makes sense”, Galetti said. “We’re facing an unusual macro-economic environment, and want to balance our hiring and investments with being thoughtful about this economy.” Read more.
Bank of England announces biggest rate hike in 30 years
The Bank of England made its biggest interest rate increase in three decades on Thursday, joining the U.S. Federal Reserve and other central banks worldwide in rapid hikes as it tries to beat back stubbornly high inflation fuelled by Russia’s invasion of Ukraine and the disastrous economic policies of former prime minister Liz Truss. The central bank boosted its key rate by three-quarters of a percentage point, to three percent, after consumer price inflation returned to a 40-year high in September. The aggressive move comes even as the bank predicted a two-year economic contraction through June 2024, which would be the longest recession since at least 1955, according to the Office for National Statistics. Read more.