News

The Canadian Union of Postal Workers has initiated a strike in response to the government’s decision to end door-to-door mail delivery for nearly all households in the coming years. This move by Canada Post is part of an effort to improve the corporation’s financial standing amidst declining demand for letter mail and increased competition in the parcel market. The union argues that these changes will only further decrease demand for postal services and result in a detrimental impact on Canada Post’s financial situation.

As the strike disrupts mail and parcel delivery across the country, both the union and Canada Post are urged to engage in meaningful negotiations to reach a fair resolution. With the government backing the introduction of more community mailboxes and slower delivery times, the future of postal service in Canada is uncertain. However, the importance of Canada Post as a national institution that connects communities and provides essential services is emphasized, even amid the current challenges it faces.

Global debt reached an all-time high of $337.7 trillion in the second quarter, driven by favorable global financial conditions, a weakened U.S. dollar, and more accommodating policies from major central banks. The Institute of International Finance reported a staggering $21 trillion increase in global debt during the first half of the year, with countries like China, France, the U.S., Germany, the UK, and Japan leading the surge in debt levels when measured in U.S. dollar terms.

The rise in global debt mirrors the unprecedented buildup seen in the second half of 2020 during the pandemic. While debt-to-GDP ratios decreased in countries like Ireland, Japan, and Norway, they surged in others like Canada, China, Saudi Arabia, and Poland. The report also highlighted growing concerns over government debt, particularly in G7 countries and China. With the bond market pressures intensifying in advanced economies, caution is urged in the face of potential fiscal strains and the risk of compromising monetary policy independence, especially as emerging markets face record high levels of bond and loan redemptions.

The U.S. economy experienced faster growth in the second quarter, driven by robust consumer spending and business investment. Despite lingering uncertainty from trade policy, the Commerce Department reported a 3.8% increase in GDP, the highest rate in nearly two years. A sharp contraction in the trade deficit, along with strong demand for equipment and a drop in unemployment benefits, contributed to this growth.

While economists expect a tempered second half of the year due to trade policy uncertainty, the upward revision in consumer spending and business investment indicates a stable economy. With initial claims for unemployment benefits decreasing and continuing claims falling, the labor market remains steady. Overall, the data suggests that further interest rate cuts may not be necessary, highlighting the resilience of the U.S. economy.

Microsoft has announced the disabling of a set of cloud and AI services used by a unit within the Israel Ministry of Defense (IMOD) following preliminary evidence supporting reports of a surveillance system in Gaza and the West Bank. This decision was prompted by an August article in the Guardian alleging activity by a unit of the Israel Defense Forces utilizing Microsoft’s Azure for collecting and storing data on phone calls made by civilians in the region. While the internal review is ongoing, Microsoft has found evidence corroborating elements of the Guardian’s reporting, leading to the company’s decision to cease and disable specified IMOD subscriptions and services related to cloud storage and AI technologies.

Brad Smith, Microsoft’s president, emphasized that the company does not provide technology to facilitate mass surveillance of civilians. The action taken does not affect Microsoft’s cybersecurity services to Israel and neighboring countries in the Middle East. In a related development, Microsoft terminated four employees who participated in protests on company premises regarding ties to Israel during the conflict in Gaza, citing breaches of company policies and safety concerns arising from on-site demonstrations.

Eli Lilly announced plans to build a new manufacturing facility in Houston, Texas, as part of its $27 billion investment in U.S. manufacturing plants. The facility will focus on producing small molecule drugs, including an experimental obesity pill, orforglipron. The company is aiming to address supply constraints and meet the growing demand for these drugs, particularly in the booming market for GLP-1s.

The new Houston site is expected to create 615 jobs in the Greater Houston area and bring 4,000 construction jobs. Eli Lilly’s investment in domestic manufacturing reflects a strategic move to boost production in the U.S. and align with President Donald Trump’s push to re-shore production. The company aims to enhance its ability to manufacture small molecule drugs and fulfill the potential of orforglipron as a treatment for obesity and type 2 diabetes on a global scale.

A new research report by the Latino Donor Collaborative reveals that U.S. Latino immigrants contributed a whopping $1.6 trillion to the GDP in 2023, with an overall purchasing power of $4.1 trillion. Economists from Arizona State University noted that the Latino GDP saw a significant 50% increase from 2015, driven by higher levels of education, entrepreneurship, and labor force participation. In contrast, the estimated GDP of non-Latinos in the U.S. only grew by 17% during the same period.

The report highlighted California as a key player in Latino GDP, with a staggering $989 billion in 2023 alone, projected to surpass a trillion dollars by 2025. As Latino spending continues to grow, experts warn that mass deportations could disrupt this economic progress and lead to significant losses. If as many as 8.3 million undocumented workers were deported, the U.S. could face a decline in total GDP by $2.3 trillion or $7.7%, showcasing the vital role U.S. Latinos play in driving economic growth.

Starbucks revealed a $1 billion restructuring plan, including closing some North American coffeehouses and laying off more workers as part of its “Back to Starbucks” transformation under CEO Brian Niccol. With a decline of about 1% in company-operated stores in North America in fiscal year 2025, along with the estimated 500 gross closures, the company is aiming to prioritize resources for a stronger future.

Niccol emphasized the need for these steps to reinforce what is working and build a more resilient Starbucks that deepens its impact on the world. The company plans to focus on investment closer to the coffeehouse and customer experience, in a bid to reverse a sales slump in its largest market. By ending fiscal year 2025 with nearly 18,300 North American locations and a focus on customer service, Starbucks is taking bold steps towards growth and sustainability in the face of increased competition and changing consumer expectations.