Global events determine global exchange rates. That’s why every week at theCurrent we bring you the world’s biggest business stories. This week: North American leaders gather in Ottawa, VW pays US car owners, Ikea recalls deadly dressers, Canada’s looming postal strike and the Brexit recovery.
Prime Minister Justin Trudeau, US President Barack Obama, and Mexican President Enrique Pena Nieto met in Ottawa. Dubbed ‘the Three Amigos’ by the North American press, the leaders of Canada, Mexico and the United States discussed climate change, and other issues. President Obama topped off his trip with a rousing speech in Parliament in which he praised Canada, but also took a shot at Canada’s failure to maintain its NATO spending requirements.
VW’s Repair Bill
Volkswagen announced this week that it will spend up to $10 billion to repair, or buy back vehicles that were designed to cheat emissions tests. VW will also be forced to pay a $5 billion fine. Unfortunately for Canadian VW owners, the buyback deal only applies to American vehicles for now.
Furniture giant IKEA has announced a recall for 29 million Malm dressers (and other similar dressers) in the US, and a further 6.6 million in Canada. The dressers have been sold in Canada since 1998, but the company has made the decision to recall the dressers as a result of half a dozen deaths stretching back nearly 30 years.
The looming Canada Post strike is threatening to hit small businesses hard. The Canadian Union of Postal Workers must give at least 72 hours notice before a strike starts, so the action won’t take place until Wednesday at the earliest. The Canadian Union of Postal Workers are protesting a change to their employee pension plans.
After a tumultuous post-Brexit sell off that caused a 10% fall in value, the FTSE has rebounded by 73.5 points to a new 10 month high. The FTSE was boosted by Bank of England Governor Mark Carney’s suggestion that the bank could cut interest rates, making money cheaper to borrow, this however would also keep the pound low and it currently remains down 11%. Some business leaders are arguing that a cheaper pound makes British exports cheaper and British companies more competitive.
Stay informed. Stay Current.