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Britain’s Boris Johnson resigning as PM amid scandal

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LONDON (AP) — Prime Minister Boris Johnson announced his resignation Thursday amid a mass revolt by top members of his government, marking an end to three tumultuous years in power in which he brazenly bent and sometimes broke the rules of British politics.
Months of defiance ended almost with a shrug as Johnson stood in 10 Downing Street and conceded that his party wanted him gone.

“Them’s the breaks,” he said.

The brash, 58-year-old politician who took Britain out of the European Union and steered it through COVID-19 and the war in Ukraine was brought down by one scandal too many — this one involving his appointment of a politician who had been accused of sexual misconduct.

The messiest of prime ministers did not leave cleanly. Johnson stepped down immediately as Conservative Party leader but said he would remain as prime minister until the party chooses his successor. The timetable for that process will be announced next week, he said.

But many in the party want him gone before then, and his government has been shredded by scores of resignations.

Among the possible candidates to succeed him: former Health Secretary Sajid Javid, former Treasury chief Rishi Sunak, Foreign Secretary Liz Truss and Defense Secretary Ben Wallace.

Johnson had clung to power for two days, defiantly telling lawmakers on Wednesday that he had a “colossal mandate” from voters and intended to get on with the business of government.

But he was forced to concede defeat Thursday morning after one of his closest allies, newly appointed Treasury chief Nadhim Zahawi, publicly told him to resign for the good of the country.

“In the last few days, I tried to persuade my colleagues that it would be eccentric to change governments when we’re delivering so much and when we have such a vast mandate,” Johnson said outside his office. “I regret not to have been successful in those arguments, and of course it’s painful not to be able to see through so many ideas and projects myself.’’

About 50 Cabinet secretaries, ministers and lower-level officials had quit the government over the past few days, often castigating the prime minister for his lack of integrity.

The mass resignations had left numerous positions unfilled, and the crisis had stalled the business of some parliamentary committees because there were no ministers available to speak on the government’s behalf.

“It is clearly now the will of the parliamentary Conservative Party that there should be a new leader of that party and therefore a new prime minister,” Johnson said.

Zahawi, who was promoted earlier this week as Johnson tried to shore up his Cabinet, said he and a group of colleagues had privately expressed their concerns to the prime minister on Wednesday and he decided to go public after Johnson ignored the advice to resign.

“I am heartbroken that he hasn’t listened and that he is now undermining the incredible achievements of this government,” Zahawi said in a letter posted on Twitter. “But the country deserves a government that is not only stable but which acts with integrity.”

It is a humiliating defeat for Johnson, who not only pulled off Brexit but was credited with rolling out one of the world’s most successful mass vaccination campaigns to combat COVID-19.

But the perpetually rumpled, shaggy-haired leader known for greeting critics with bombast and bluster was also dogged by criticism that he acted as if the rules did not apply to him.

Johnson became prime minister in July 2019, succeeding Theresa May, who resigned after Parliament rejected the Brexit agreement she negotiated with the EU. Johnson pushed his own Brexit deal through in an often messy and turbulent debate.

He managed to remain in power despite allegations that he was too close to party donors, that he protected supporters from bullying and corruption allegations, and that he misled Parliament about government office parties that broke COVID-19 lockdown rules. He was fined by police over the parties and survived a no-confidence vote last month in Parliament in which 41% of Conservative lawmakers voted to oust him.

Recent disclosures that Johnson knew about sexual misconduct allegations against a Conservative lawmaker before he promoted him to a senior position in government proved to be one scandal too many.

The crisis began when Chris Pincher resigned as deputy chief whip amid allegations that he had groped two men at a private club. That triggered a series of reports about past allegations leveled against Pincher.

Johnson tried to deflect criticism with shifting explanations about what he knew and when he knew it, but that just highlighted concerns that the prime minister couldn’t be trusted.

Javid and Sunak resigned within minutes of each other Tuesday night, triggering the wave of departures among their Cabinet colleagues and lower-level officials.

Javid captured the mood of many lawmakers when he said Johnson’s actions threatened to undermine the integrity of the Conservative Party and the British government.

“At some point we have to conclude that enough is enough,” he said Wednesday in the House of Commons. “I believe that point is now.”

Bernard Jenkin, a senior Conservative Party lawmaker, told the BBC he met with Johnson later in the day and advised him to step down.

“I just said to him, ‘Look, it’s just when you go now, and it’s how you go. You can go with some dignity or you can be forced out like Donald Trump clinging to power and pretending he’s won the election when he’s lost,'” Jenkin said.

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Follow all of AP’s coverage of Prime Minister Boris Johnson at https://apnews.com/hub/boris-johnson

Danica Kirka, Jill Lawless And Sylvia Hui, The Associated Press

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COVID-19

Effect of pandemic border restrictions could be long-lasting: Critics

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BANFF, Alta. — The last of Canada’s COVID-19 border restrictions are set to disappear at the end of this month, but some critics say they fear the measures have already caused a lasting decrease in cross-border travel.

At the Global Business Forum in Banff, Alta. on Friday, prominent voices who have been arguing for months in favour of the lifting of restrictions such as mandatory vaccinations, testing and quarantine requirements for international visitors said they’re now worried the economic impacts of such measures could be permanent.

In a panel discussion at what is an annual conference for business leaders in Canada’s most-visited national park, Meredith Lilly – an associate professor at Carleton University and a former international trade advisor to Prime Minister Stephen Harper – said cross-border day trips by Canadians to the U.S. never fully recovered after the terrorist attacks of Sept. 11, 2001.

She said her research has showed part of that is due to the heightened U.S. border controls put in place after that event.

“Fewer Canadians travelled to the United States to shop or fill up their tank of gas because of the unfriendly border,” Lilly said.

“Canada is now doing the same thing to Americans. So it’s going to take major effort to get Americans to come back.”

Earlier this week, federal government sources confirmed the cabinet order maintaining COVID-19 border measures will not be renewed when it expires on Sept. 30.

The change means international travellers will no longer have to prove they are fully vaccinated against COVID-19. Under the current rule, Canadians returning to the country who aren’t vaccinated must show a negative COVID-19 test result before arriving, and undergo further testing after arrival. They also must quarantine for 14 days.

The expiry also spells the end of insisting travellers use the ArriveCan app to input their vaccine status and test results, though the app will live on as an optional tool for customs and immigration.

But Lilly said the two-and-a-half years that pandemic-related border rules were in place was likely long enough to change the habits of some Americans, who will now no longer consider visiting Canada in the future.

Statistics Canada reported Friday that the number of international arrivals to this country increased in July even as they remain well below pre-pandemic levels.

The agency said the number of trips by U.S. residents in July was 2.2 million, 11 times the number of trips taken in July 2021, but still about 60 per cent of the trips reported in July 2019.

“So the picture still isn’t great,” Lilly said. “And three years is a long time for people to permanently change their behaviour.”

Canadian Chamber of Commerce president and CEO Perrin Beatty, who also spoke in Banff Friday, said this country’s tourism industry has now missed out on two summer seasons.

He said multiple medical experts have argued that testing asymptomatic travellers for COVID-19 at the border is far less effective than testing symptomatic Canadians within their communities.

“We’ve maintained these restrictions that simply make no sense. The cost to us, for small businesses in every part of this country, of the friction that we’ve put on at the border has been billions of dollars,” Beatty said.

“And we’re out of step with other countries around the world, we’re out of step with the science, and we’re out of step with the rest of Canadian society because of these self-inflicted wounds we’ve put on ourselves.”

A report released by the Canadian Travel and Tourism Roundtable on Friday aimed to assess the impact and effectiveness of border measures and other travel restrictions implemented by the federal government to slow the spread of COVID-19.

The report, which was authored by four Canadian doctors specializing in infectious diseases, emergency medicine and pandemic management, concluded border measures have been largely ineffective at preventing new COVID-19 variants from entering the country.

It also said there is no convincing evidence that pre-departure and on-arrival testing and surveillance have had a significant impact on local transmission in Canadian communities.

The expiry of the cabinet order on Sept. 30 doesn’t deal with whether passengers must wear masks on domestic and international trains and planes because that rule is contained in a separate order issued by the minister of transport.

The tourism industry has argued masking on planes is also “inconsistent” from a policy perspective, given that the high air exchange rates on passenger aircraft make them one of the safest ways to travel from a COVID-19 perspective.

“But the government of Canada is saying the single most dangerous thing you can be doing is travelling by air,” Beatty said.

This report by The Canadian Press was first published Sept. 23, 2022.

Amanda Stephenson, The Canadian Press

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Business

Dow sinks to 2022 low as recession fears roil world markets

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BEIJING — Stocks fell sharply worldwide Friday on worries an already slowing global economy could fall into recession as central banks raise the pressure with additional interest rate hikes.

The Dow Jones Industrial Average fell 1.6%, closing at its lowest level since late 2020. The S&P 500 fell 1.7%, close to its 2022 low set in mid-June, while the Nasdaq slid 1.8%.

The selling capped another rough week on Wall Street, leaving the major indexes with their fifth weekly loss in six weeks.

Energy prices closed sharply lower as traders worried about a possible recession. Treasury yields, which affect rates on mortgages and other kinds of loans, held at multiyear highs.

European stocks fell just as sharply or more after preliminary data there suggested business activity had its worst monthly contraction since the start of 2021. Adding to the pressure was a new plan announced in London to cut taxes, which sent U.K. yields soaring because it could ultimately force its central bank to raise rates even more sharply.

The Federal Reserve and other central banks around the world aggressively hiked interest rates this week in hopes of undercutting high inflation, with more big increases promised for the future. Such moves put the brakes on economies by design, in hopes that slower purchases by households and businesses will deflate inflationary pressures. But they also threaten a recession, if they rise too far or too quickly.

Besides Friday’s discouraging data on European business activity, a separate report suggested U.S. activity is also still shrinking, though not quite as badly as in earlier months.

“Financial markets are now fully absorbing the Fed’s harsh message that there will be no retreat from the inflation fight,” Douglas Porter, chief economist at BMO Capital Markets, wrote in a research report.

U.S. crude oil prices slid 5.7% to their lowest levels since early this year on worries that a weaker global economy will burn less fuel. Cryptocurrency prices also fell sharply because higher interest rates tend to hit hardest the investments that look the priciest or the most risky.

Even gold fell in the worldwide rout, as bonds paying higher yields make investments that pay no interest look less attractive. Meanwhile the U.S. dollar has been moving sharply higher against other currencies. That can hurt profits for U.S. companies with lots of overseas business, as well as put a financial squeeze on much of the developing world.

The S&P 500 fell 64.76 points to 3,693.23, its fourth straight drop. The Dow, which at one point was down more than 800 points, lost 486.27 points to close at 29,590.41. The Nasdaq fell 198.88 points to 10,867.93.

Smaller company stocks did even worse. The Russell 2000 fell 42.72 points, or 2.5%, to close at 1,679.59.

More than 85% of stocks in the S&P 500 closed in the red, with technology companies, retailers and banks among the biggest weights on the benchmark index.

The Federal Reserve on Wednesday lifted its benchmark rate, which affects many consumer and business loans, to a range of 3% to 3.25%. It was at virtually zero at the start of the year. The Fed also released a forecast suggesting its benchmark rate could be 4.4% by the year’s end, a full point higher than envisioned in June.

Treasury yields have climbed to multiyear highs as interest rates rise. The yield on the 2-year Treasury, which tends to follow expectations for Federal Reserve action, rose to 4.20% from 4.12% late Thursday. It is trading at its highest level since 2007. The yield on the 10-year Treasury, which influences mortgage rates, slipped to 3.69% from 3.71%.

Goldman Sachs strategists say a majority of their clients now see a “hard landing” that pulls the economy sharply lower as inevitable. The question for them is just on the timing, magnitude and length of a potential recession.

Higher interest rates hurt all kinds of investments, but stocks could stay steady as long as corporate profits grow strongly. The problem is that many analysts are beginning to cut their forecasts for upcoming earnings because of higher rates and worries about a possible recession.

“Increasingly, market psychology has transitioned from concerns over inflation to worries that, at a minimum, corporate profits will decline as economic growth slows demand,” said Quincy Krosby, chief global strategist for LPL Financial.

In the U.S., the jobs market has remained remarkably solid, and many analysts think the economy grew in the summer quarter after shrinking in the first six months of the year. But the encouraging signs also suggest the Fed may have to jack rates even higher to get the cooling needed to bring down inflation.

Some key areas of the economy are already weakening. Mortgage rates have reached 14-year highs, causing sales of existing homes to drop 20% in the past year. But other areas that do best when rates are low are also hurting.

In Europe, meanwhile, the already fragile economy is dealing with the effects of war on its eastern front following Russia’s invasion of Ukraine. The European Central Bank is hiking its key interest rate to combat inflation even as the region’s economy is already expected to plunge into a recession. And in Asia, China’s economy is contending with still-strict measures meant to limit COVID infections that also hurt businesses.

While Friday’s economic reports were discouraging, few on Wall Street saw them as enough to convince the Fed and other central banks to soften their stance on raising rates. So they just reinforced the fear that rates will keep rising in the face of already slowing economies.

Economics Writer Christopher Rugaber and Business Writers Joe McDonald and Matt Ott contributed to this report.

Damian J. Troise And Alex Veiga, The Associated Press

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september, 2022

tue27sep10:00 am4:00 pmCACPC Annual SHRED Event10:00 am - 4:00 pm MST The Central Alberta Crime Prevention Centre, 4311-49 Ave Event Organized By: The Central Alberta Crime Prevention Centre

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