Connect with us

AMERICA

The US contacted the Canada against the truckers

Published

on

In a rare moment in Canadian history, Prime Minister Justin Trudeau testified before the Emergencies Act for an independent public investigation. The reason for the investigation was whether the state of emergency powers exercised against the protests of the truckers who locked Ottawa in January and February of this year were legitimate.

Trudeau stood firm in the face of the investigation. Claiming that the use of extraordinary powers is “unavoidable”, the Canadian leader said it is not possible to negotiate with protesters. “They didn’t want their voices heard, they wanted obedience,” Trudeau said, noting the threat of violence and the inadequacy of the police.

The Canadian prime minister added that he was “absolutely serene and confident” in his choice to exercise exceptional powers. The State of Emergency Law, which took its current form in the 1980s, had never been used in this form before.

One of the convoy lawyers told Trudeau, “When did you and your government become so afraid of your own citizens?” The Canadian replied: “I am not and we are not.”

What was done to the truckers?

Truckers organized under the name of “Freedom Convoy” had locked up the capital Ottawa to protest the COVID-19 vaccine mandate and public restrictions.

The matter was that the vaccine exemption for truckers crossing the US border should end on both sides of the border and the requirement for vaccination to cross the border was introduced. Truckers were saying that the COVID-19 vaccine mandate should be dropped.

The protests, which began on 29th January, entered a new phase after the meeting between Joe Biden and Justin Trudeau on February 11th. Three days later, the Canadian government began implementing the Emergency Act.

The law gave the government the right to block meetings and send federal forces to help local police. Furthermore, the bank accounts of people “believed to be supporting the convoy” could be temporarily suspended. The government also exercised this authority.

The pressure from the US and banks has worked

Finance Minister Chrystia Freeland, a member of the cabinet who testified before the commission, argued that Canada has faced a “dangerous moment” during the protests. What Freeland meant was that the blockade of truckers closed the vital trade corridor with the United States.

Trudeau went further and told US President Joe Biden during the protests that he was trying to reassure him that Canada would “continue to be a reliable partner”.

Chrystia Freeland described the phone call Biden had with one of her economic advisers, Brian Deese, on February 10th, as a “defining” moment. Deese said that if the blockade does not end within 12 hours, all automotive factories in the northeast of the United States will be shut down.

On February 13th, the day before the implementation of Emergency Act, the meeting with Canada’s senior bank CEOs also confirmed US’ concerns.

The CEOs felt that the protests were putting Canada’s reputation at risk. A CEO said he spent a week in the US and that the protests made Canada seem like a “joke” to his neighbour. CEOs complained of the inadequacy of the laws in force and made recommendations to cut off financial support for the protest organizers.

In fact, an unnamed CEO wanted the government to act quickly by declaring protesters “terrorists”. Freeland also made an interesting suggestion, calling it “deplorable” when a foreign investor, whom one of the CEOs tried to convince, called Canada a “banana republic.” “Remind him of Brexit if the foreign investor is British, remind him of the Yellow Vests if he is French, remind him of how badly they are currently managing Russia if he is German.”

‘How many tanks are you asking for?’

As part of the commission’s investigation, obtaining messages among the ministers also revealed shocking remarks.

The phone messages between Public Security Minister Marco Mendicino and Justice Minister David Lametti are an example to this. “You need to get the police to act,” Lametti wrote to Mendicino on 2nd February 2022. And CAF if necessary, ”he said. Mendicino’s answer is nothing more than a “joke”: “How many tanks are you asking for?”

The pair then complained of the inadequacy and inability of the Ottawa police chief to maintain order. The messages suggest that the Justice Minister is considering implementing the Emergency Act only on 30th January 2022. “I was just being cautious,” Lametti says.

Intelligence chief’s advice to Trudeau

Another fact that emerged during the investigation is that David Vigneault, chief of the Canadian Security Intelligence Service (CSIS), was the one to have recommended the use of the Emergency Act to the Canadian government.

Testifying to the commission, Vigneault said the truckers’ protests did not pose a national security threat to the CSIS Act, but the Emergency Act was still necessary.

Shaping media narrative

On the other hand, it was revealed how the Canadian government wanted to determine the media narrative against truckers. Trudeau adviser Mary-Liz Power sends a message to Alexander Cohen, communications director at the Department of Public Safety, outlining a media strategy that the truckers’ protest will resemble those of 6th January 2021 in the United States.

In another text message with Cohen, Power says that global and other media outlets are working on some news. Indeed, Global News, one of Canada’s largest media outlets, cited the headline on 25th January 2022: “Extreme right-wing groups hope that trucker protests will be Canada’s ‘January 6th’.”

AMERICA

Fed cuts interest rates, dollar surges to two-year high

Published

on

The U.S. Federal Reserve reduced interest rates by a quarter percentage point but signaled a slower pace of easing next year. This move drove the U.S. dollar to its highest level in two years and triggered a sell-off in both domestic and international stock markets.

The Federal Open Market Committee (FOMC) voted on Wednesday to lower the benchmark interest rate to 4.25–4.5%, marking the third consecutive cut. The lone dissenting vote came from Cleveland Fed President Beth Hammack, who favored maintaining the current rates.

Officials highlighted concerns about persistent inflation, projecting fewer rate cuts for 2025 than previously expected. Reflecting these worries, policymakers also raised their inflation forecasts for the coming year. Following the announcement, Fed Chair Jay Powell remarked that the current policy settings were “significantly less restrictive,” indicating the Fed’s inclination to adopt a more cautious approach to further easing.

“This decision was a ‘closer call’ than prior meetings,” Powell noted, emphasizing that inflation trends remain “sideways” while risks to the labor market are “diminishing.”

Aditya Bhave, senior U.S. economist at Bank of America, described the Fed’s message as “unabashedly hawkish.” He pointed to the shift in officials’ 2025 forecasts, which now anticipate just two quarter-point rate cuts instead of three, calling it a “wholesale shift.”

JPMorgan Chase, a key player in U.S. bond markets, noted that money markets are pricing in only a 0.31 percentage point rate cut in 2025. This outlook, significantly tighter than the bank’s earlier 0.75-point forecast, underscores the magnitude of the Fed’s policy shift.

The decision triggered a sharp sell-off on Wall Street, with the S&P 500 falling 3% and the tech-heavy Nasdaq Composite dropping 3.6%. High-profile winners of the 2024 rally were hit hard, including: Tesla, down 8.3%; Meta (Facebook’s parent company), down 3.6%; Amazon, down 4.6%.

Smaller companies, often seen as more sensitive to US economic fluctuations, also suffered. The Russell 2000 index declined 4.4%.

In Asia, stocks fell in early Thursday trading. Benchmarks in South Korea and Taiwan dropped 1.8% and 1.6%, respectively. Meanwhile, U.S. government bond prices fell, driving the yield on two-year Treasuries—sensitive to Fed policy—up by 0.11 percentage points to 4.35%.

The U.S. dollar surged 1.2% against a basket of six major currencies, reaching its strongest level since November 2022. According to Wells Fargo senior economist Mike Pugliese, the currency had already been rising on expectations of inflationary pressures following Donald Trump’s election victory last month. However, Wednesday’s Fed decision “poured more petrol on the fire.”

The South Korean won dropped to a 15-year low against the dollar, while the Japanese yen weakened 0.5%.

Continue Reading

AMERICA

Amazon pledges $1 billion to Trump inauguration fund

Published

on

Amazon confirmed on Thursday that it will contribute $1 million to Donald Trump’s inauguration fund, a move mirroring similar actions by other major tech companies, including Meta, the parent company of Facebook and Instagram. Amazon also plans to broadcast Trump’s inauguration via its Prime Video service.

This announcement comes as major tech executives seek to establish ties with the incoming U.S. president, despite Trump’s longstanding criticisms of Big Tech. Trump has frequently accused technology companies of censorship and bias against conservative media.

Jeff Bezos, Amazon’s founder and CEO, is reportedly planning to meet Trump at his Mar-a-Lago resort next week, according to The Wall Street Journal, which first reported Amazon’s donation. Similarly, Google CEO Sundar Pichai and Apple CEO Tim Cook have expressed their congratulations to Trump since his election victory in November.

Trump’s relationship with Amazon has been fraught with challenges. During his first term, he accused the company of undercutting competition and criticized its tax policies. In 2018, Trump ordered a review of U.S. Postal Service package pricing, claiming the agency acted as Amazon’s “courier.”

Apple, meanwhile, faces potential risks from Trump’s proposed tariff policies, which could disrupt critical supply chains in China. However, during Trump’s first term, Cook secured exemptions for certain Apple products.

Meta’s CEO, Mark Zuckerberg, and other tech leaders have also engaged with Trump. According to The Information, Zuckerberg dined with Trump after the election. Pichai is also expected to meet Trump this week.

While Trump scrutinized Big Tech during his presidency, Amazon now faces mounting regulatory pressure under President Joe Biden. The U.S. Federal Trade Commission (FTC), led by Lina Khan, has been investigating Amazon for alleged monopoly practices, with several states filing lawsuits last year. The FTC is also examining major cloud service providers, including Amazon, over partnerships in artificial intelligence.

Despite earlier conflicts, Bezos recently praised Trump for his “tremendous grace and courage under real fire” in a post on X (formerly Twitter) following an assassination attempt. Bezos, who also owns The Washington Post, reportedly prevented the newspaper from endorsing Trump’s Democratic opponent Kamala Harris in the 2024 election.

Speculation about a tacit agreement between Bezos and Trump has surfaced, allegedly tied to Blue Origin, Bezos’s rocket company competing with Elon Musk’s SpaceX.

Continue Reading

AMERICA

Investors poured $140 billion into U.S. equities following Trump’s victory

Published

on

Nearly $140 billion has flowed into U.S. equity funds since last month’s election, as investors anticipate Donald Trump’s administration will implement sweeping tax cuts and regulatory reforms.

According to the Financial Times (FT), which cites data from EPFR, U.S. equity funds have seen inflows totaling $139.5 billion since Trump’s victory on November 5. This surge in investment made November the busiest month for equity inflows since records began in 2000.

The massive influx of funds has driven major U.S. stock indexes to a series of record highs, as investors appeared to shrug off concerns about potential economic risks, including inflation and its implications for the Federal Reserve’s interest rate policy.

“The growth agenda that Trump has put on the table is being fully embraced,” said Dec Mullarkey, Chief Executive of SLC Management. He added that Trump’s picks for top administration posts have been seen as “very market friendly.”

Trump has promised to fill his administration with financial experts, including Scott Bessent as Treasury Secretary, and Paul Atkins, a cryptocurrency advocate, as Chairman of the Securities and Exchange Commission (SEC).

The president-elect has outlined a pro-growth agenda, emphasizing reduced taxes, deregulation, and economic expansion. These proposals have spurred optimism among investors, fueling a rally in the market.

The S&P 500, Wall Street’s primary stock market indicator, has risen 5.3% since Election Day, bringing its total gains for the year to 28%. Smaller companies, which are often seen as more responsive to changes in the U.S. economy, have outperformed larger firms during this period. The Russell 2000 index recently hit a record high for the first time in three years.

While U.S. equity funds have enjoyed record inflows, other global markets have experienced outflows emerging market funds have seen net withdrawals of $8 billion, with China-focused funds accounting for $4 billion; funds investing in Western Europe have lost $14 billion; and Japan-focused funds have seen outflows of approximately $6 billion.

Continue Reading

MOST READ

Turkey