Fight to save Senegalese capital's coast gains momentumDAKAR (Reuters) - From the top of a ladder, a Senegalese girl struggles to catch a glimpse of the beach hidden by a swanky hotel’s sprawling ocean frontage - a stunt for a music video that highlights growing grassroots efforts to save Dakar’s coast from hungry developers.

The video shows the threat that unregulated construction poses to the Senegalese capital’s eroding shoreline, which provides a cherished escape for residents of the crowded and often polluted city.

“Where will our children play tomorrow?,” raps activist hiphop artist Malal Talla, also known as ‘Fou Malade’, as drone footage shows the concrete husks of half-built buildings and an industrial site on the West African shore.

The Dakar region’s population is growing at twice the rate of the rest of Senegal and has reached 3 million.

Scientists and residents have sounded the alarm over the destruction of ocean-side plantations of filao - whistling pine trees - whose salt-tolerant, far-reaching roots stabilise the dunes and slow coastal erosion.

Dakar lost nearly 9 metres of coast per year in its worst-affected areas between 2006 and 2015, far above the national average of 1-2 metres, said Amadou Tahirou Diaw, a former geography professor at Dakar’s Cheikh Anta Diop university.

Michel Mendy, who coordinates the activist group behind the video, said he understood the capital needed to grow. “But it doesn’t mean they have to go to the forest nearby, cut it and replace it with concrete,” he said, standing on the beach in Dakar’s Guediawaye district, where a new highway has split its strip of ageing filaos.




The group’s protest adds to a chorus of public anger fueled by a recent construction project on one of Dakar’s most popular open beaches. Dismay mounted in May when a digger started gouging chunks from one of the city’s twin volcanic hills. Thousands signed an online petition urging the government to take action.

The environment ministry did not respond to requests for comment.

It is not the first time Dakar has seen developers restrict coastal access, exploit legal loopholes, or build in protected areas. But Professor Diaw said he was heartened that the fight to protect the coast had gained fresh momentum during the coronavirus pandemic.

“Maybe after COVID-19 something will change!!!” he wrote in emailed comments.

Israelis urge Netanyahu to quit over coronavirus, corruption charges
JERUSALEM (Reuters) - About 2,000 Israelis rallied outside Prime Minister Benjamin Netanyahu’s residence in Jerusalem on Tuesday as protests mounted against him over his handling of a worsening coronavirus crisis and alleged corruption.
Israelis march as they protest against Israeli Prime Minister Benjamin Netanyahu and his government's response to the financial fallout of the coronavirus disease (COVID-19) crisis, in Jerusalem July 21, 2020. REUTERS/Ronen Zvulun

Wearing protective masks, the demonstrators marched from Netanyahu’s official residence to Israel’s parliament, holding up signs that read “Crime Minister” and calling on the five-term premier to step down.

Reimposed coronavirus curbs after a rise in new COVID-19 cases have prompted Israelis demanding better state aid to take to the streets in almost daily demonstrations.

Public anger has also been fuelled by corruption alleged against Netanyahu, who went on trial in May for bribery, fraud and breach of trust - charges he denies.


Netanyahu has announced numerous economic aid packages. But frustrated by red tape and a slow pace, many Israelis say the aid is coming too little, too late.

“It’s humiliating and insulting. You pay social security and taxes for thirty years and then have to beg (the authorities) in order to make ends meet. I’m here to protest, so that this evil government quits,” said Doron, 54.

He asked not to give his full name and said he has been on unpaid leave for three months.

As part of the protest, restaurant owners set up a free buffet for the demonstrators, demanding their businesses keep open or else receive compensation.


Israel lifted in May a partial lockdown that had flattened an infection curve. But a second surge of COVID-19 cases and ensuing restrictions has seen Netanyahu’s approval ratings plunge to under 30% and unemployment soar to 21%. [

Police did not provide a figure for the number of demonstrators. A Reuters cameraman estimated that about 2,000 people rallied. Israeli media said the protest drew thousands from across the country. At least six people were arrested, police said.

With a population of 9 million, Israel has reported more than 50,000 coronavirus cases and 422 deaths.

Hong Kong protesters gather on anniversary of mob attack

HONG KONG (Reuters) - Small groups of Hong Kong pro-democracy demonstrators gathered on Tuesday to mark the first anniversary of an attack in a train station by an armed crowd wearing white shirts, and demanded justice for victims of the violence and broader freedoms.
A pro-democracy demonstrator holds a paper with a symbol of "Five demands, not one less" during a protest to mark the first anniversary of an attack in a train station by an armed crowd wearing white shirts, demanding justice for the victims of violence and broader freedoms, at a shopping mall in Hong Kong's Yuen Long, China July 21, 2020. REUTERS/Tyrone Siu

The Yuen Long attack, and the police’s apparent failure to prevent it, exacerbated tensions during protests last year, plunging the global financial hub into its deepest crisis since Hong Kong returned from British to Chinese rule in 1997.

Scattered individuals around the Yoho mall and Yuen Long train station chanted slogans including “Hong Kong independence, the only way out”. An elderly lady pasted small “HK Add Oil” stickers on to walls.

Hundreds of riot police cordoned off areas and urged people not to gather because of coronavirus social distancing restrictions.

Groups of youngsters roaming the malls cursed police from a distance and chanted: “Liberate Hong Kong. Revolution of our Times”, a slogan the government has warned might violate new national security laws.

Police fired pepper spray during at least one skirmish.

Tuesday’s protest followed the imposition of the new security laws by Beijing that have provoked international criticism and raised fears for the city’s liberties and autonomy under the so-called “one country, two systems” formula.

Some protesters held blank sheets of paper to oppose the “evil” law they say has criminalised free speech.

“I’ve had lots of feelings of disappointment in these past few weeks,” said Lok, an 18-year-old student dressed in a black shirt and shorts, typical of protesters, conceding the turnout was less than he had hoped. “But Hong Kong people should still keep the revolutionary spirit, and fight for their freedoms.”

The police said in a statement that five people had been arrested in Yuen Long, including a 52-year-old man suspected of breaching the national security law and pro-democracy lawmaker Ted Hui.

PROTESTERS DEMAND JUSTICE

Beijing says the law, which punishes what China broadly defines as secession, subversion, terrorism and collusion with foreign forces, was needed to plug national security loopholes left by the city’s failure to pass such legislation on its own. Hong Kong authorities say it will help bring stability.

On July 21 last year, 45 people were injured after more than 100 men in white swarmed the train station.

Police have been criticised for not responding quickly enough to calls for help, and for not immediately arresting any alleged culprits at the scene.

A recent documentary by public broadcaster RTHK showed the police had been aware of the white-shirted crowd gathering hours before the attack. Police later acknowledged plainclothes officers were present, but said investigations are continuing and further arrests were likely to be made.

Protesters are still demanding justice. So far, 37 people have been arrested, with seven charged with participating in riots and conspiracy to injure others with intent.

In May, an Independent Police Complaints Council report into the year-long protests found no evidence of collusion but identified deficiencies in police deployment during the incident.

HONG KONG PROTESTS
Police dispersed crowds at shopping mall as protesters mark anniversary of Yuen Long attack

Riot police entered a shopping centre in Yuen Long, Hong Kong to disperse people on July 21, 2020, after online calls for a demonstration to mark a year since an armed mob beat protesters and commuters at a railway station nearby.

Police conducted stop and searches at the mall and urged people to leave, citing coronavirus social-distancing rules which prohibit public gatherings of more than 4 people. Some demonstrators also held up blank pieces of paper in what was believed to be a protest against the national security law.

Scientists accidentally create 'impossible' hybrid fish

They call it the sturddlefish.

The sturddlefish has a mix of genes from the Russian sturgeon and the American paddlefish.

(Image: © Genes 2020, 11(7), 753; https://doi.org/10.3390/genes11070753, CC BY 4.0)
By Stephanie Pappas - Live Science Contributor a day ago

It shouldn't have been possible, but it was: The birth of long-nosed, spiky-finned hybrids of Russian sturgeons and American paddlefish.

Hungarian scientists announced in May in the journal Genes that they had accidentally created a hybrid of the two endangered species, which they have dubbed the "sturddlefish." There are about 100 of the hybrids in captivity now, but scientists have no plans to create more.

"We never wanted to play around with hybridization. It was absolutely unintentional," Attila Mozsár, a senior research fellow at the Research Institute for Fisheries and Aquaculture in Hungary, told The New York Times.

Related: Photos: The freakiest-looking fish

Russian sturgeons (Acipenser gueldenstaedtii) are critically endangered and also economically important: They're the source of much of the world's caviar. These fish can grow to more than 7 feet long (2.1 meters), living on a diet of molluscs and crustaceans. American paddlefish (Polyodon spathula) filter-feed off of zooplankton in the waters of the Mississippi River drainage basin, where water from the Mississippi and its tributaries drain into. They, too, are large, growing up to 8.5 feet (2.5 m) long. Like the sturgeon, the have a slow rate of growth and development puts them at risk of overfishing. They've also lost habitat to dams in the Mississippi drainage, according to the University of Michigan Museum of Zoology. The two species last shared a common ancestor 184 million years ago, according to the Times.


Nevertheless, they were able to breed —— much to the surprise of Mozsár and his colleagues. The researchers were trying to breed Russian sturgeon in captivity through a process called gynogenesis, a type of asexual reproduction. In gynogenesis, a sperm triggers an egg's development but fails to fuse to the egg's nucleus. That means its DNA is not part of the resulting offspring, which develop solely from maternal DNA. The researchers were using American paddlefish sperm for the process, but something unexpected happened. The sperm and egg fused, resulting in offspring with both sturgeon and paddlefish genes.

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The resulting sturddlefish hatched by the hundreds, and about 100 survive now, according to the Times. Some are just about 50-50 mixtures of sturgeon and paddlefish genes, and some are far more sturgeon-like. All are carnivores, like the sturgeon, and share the sturgeon's blunter nose, compared with the paddlefish's pointy snout.


Most hybrid species, such as the liger (a mix of a lion and a tiger) and the mule (a mix of a horse and donkey), can't have offspring of their own, and the sturddlefish is probably no exception. Mozsár and his colleagues plan to care for the fish, but they won't create more, since the hybrid could outcompete native sturgeon in the wild and worsen the sturgeon's chances of survival.

However, the fact that fish separated by 184 million years of evolution could cross-breed indicates that they're not so different after all.

"These living fossil fishes have extremely slow evolutionary rates, so what might seem like a long time to us isn't quite as long of a time to them," Solomon David, an aquatic ecologist at Nicholls State University in Louisiana, told the Times.

Originally published on Live Science.

Sperm whales use echolocation to hunt squid in the deep sea

Echolocation gives whales lopsided heads

By Katie Pavid 
SCIENCE NEWS
First published 10 July 2020

Toothed whales developed asymmetric skulls to help with ecolocation, a new study reveals.
In most toothed whales, the internal organs in the skull are squashed into the left side to make way for soft tissues which help them to echolocate.

Echolocation is a technique used by animals that need to navigate and hunt in the dark. They emit high-pitched sounds which bounce off objects and are reflected back at the animal. These reflected noises help the brain to build an image of the animal's surroundings, allowing them to 'see' where objects are and how they are moving.

Only some whales, dolphins, and porpoises (collectively known as cetaceans) can do this. Cetaceans are split into two groups, those with teeth and those with baleen. Baleen whales (mysticetes), including blue whales and humpback whales, filter ocean water for tiny crustaceans and fish and do not need to ecolocate. Cetaceans with teeth (odontocetes) include dolphins, killer whales, belugas, narwhals, and sperm whales, and these animals hunt in a variety of marine environments. Echolocation helps them do it.

A new research paper, published in BMC Biology, has examined the skulls of ancient and modern whales to find out more about when and why they developed this ability and why it gave them such a unique head shape.

Ellen Coombs, a PhD student at the Museum and the lead author of the paper, says, 'Scientists know that toothed whales have wonky skulls, and that's because they echolocate. Their wonky skulls have a whole load of extra soft tissue above them called the melon.

'We were looking at the evolution of this wonkiness - when it first evolved, how wonky the skull is, and whether some are more wonky than others.'

The earliest ancestors of whales were ancient animals called archaeocetes. They had wonky snouts which possibly helped them hear well underwater, but they couldn't echolocate. Researchers don't know a lot about how whale skulls evolved from there to the neocetes - the animals including the most recent common ancestor of living cetaceans

This new paper is the first time researchers have studied asymmetry across such a broad range of whales, dolphins, and porpoises over their whole 50-million-year evolution. Ellen and her colleagues studied 162 skulls (of which 78 were fossil and 84 were from living animals) including 34 from the Museum's world-leading marine mammal collection.

Baleen whales and toothed whales started to evolve differently about 36 million years ago.

Baleen whale faces stayed symmetrical, but Ellen found that for toothed whales, wonkiness became a significant facial feature about 30 million years ago, and they have gotten more and more lopsided as they continue to evolve.


Ganges river dolphins echolocate a whole octave lower that other whales and dolphins and have an unusual crest on their skulls to help focus echolocation. This specimen of a river dolphin is in the Museum's marine mammal research collection.

Ellen explains, 'We found the wonky snout started to disappear but then the toothed whales get a lopsided facial region.

'We also found that whales living in extreme environments such as narwhals, belugas, river dolphins and deep-diving sperm whales rely on echolocation more than other whales, and so have even more strangely shaped heads.

'They live in weird environments, either shallow icy water, murky rivers or the very deep ocean, so we think they are starting to have a really specialised type of ecolocation. That's something that needs to be studied more in the future.'

UK

 Studies show microplastics are causing a negative impact to the health of the River Thames and its inhabitants

First published 21 July 2020

Three of London’s major institutes, the Natural History Museum (NHM), Royal Holloway, University of London and the Zoological Society of London (ZSL), have been collaborating on research into how high levels of microplastics are impacting the River Thames, including seriously affecting its inhabitants, the water column and shoreline. 

Separate new studies by Postgraduate students Alex McGoran, Katharine Rowley and Katherine McCoy, all from the Department of Biological Sciences at Royal Holloway, reveal that microplastics, are present in high quantities throughout the tidal Thames and are being ingested by wildlife.

Fibres from washing machine outflows and potentially from sewage outfalls, are most commonly ingested by wildlife; but fragments from the breakup of larger plastics, such as packaging items are most abundant in the water. “Flushable” wet wipes were found in high abundance on the shoreline forming huge unsightly reefs. Although pollution from trace metals is now on the decline, the contamination of the Thames by plastic is a major issue.

The research of Alex McGoran1, NERC DTP PhD student (Royal Holloway and NHM) and supported by the Fishmongers’ Company Charitable Trust, reports how two resident estuarine species of crab, namely the native shore crab and the invasive Chinese mitten crab, are ingesting microplastics.

In total, 135 crabs were examined and 874 pieces and tangles of plastic, mainly in the form of fibres, were removed for their bodies. Frequently these fibres form tangles comprising up to 100 pieces of plastic and fill the stomach of many crabs which could reduce the urge to feed and leave the animals, with less energy for growth and reproduction.

About 95% of mitten crabs were found to have tangled plastic in the stomach. Although tangles were dominated by fibres, they were found to contain other fragments of microplastics from sanitary pads, balloons, elastic bands and carrier bags.

“Typically, microplastic ingestion is low in many species, with the exception of some groups, such as seabirds. Upon bringing these crabs back to the labs at Natural History Museum, it was shocking to find that they were full of plastic. Tangles of plastic were particularly prevalent in the invasive Chinese mitten crab and we still don’t fully understand the reason for this. We propose that when crabs moult (shedding their exoskeleton to grow) that plastic is trapped in the discarded gut lining”, said Alex McGoran.

Two additional studies into the pollution of the Thames by plastic were undertaken by Masters Students.

Katharine Rowley2 (Royal Holloway, NHM and ZSL) focussed on the quantification of microplastics in the River Thames water column.

Katharine recorded many forms of microplastic in the Thames, ranging from glitter, microbeads to plastic fragments. Her study found that 93.5% of microplastics in the water column were most likely formed from the fragmentation of larger plastic items, with food packaging thought to be a significant source for these plastics.

Her study found high levels of microplastics in the Thames, estimating that on peak ebb tides, 94 thousand microplastics flow down the River Thames per second in some areas. This study highlights the severity of microplastic contamination in the River Thames and the grave need for the reduction of plastic input into the freshwater environment.

Katharine Rowley, said: “Our study provides baseline data for microplastic contamination in the River Thames water column. Globally, in comparison to published estimates of microplastic contamination in marine and freshwater environments, the River Thames contains very high levels of this pollutant, potentially a major input to the North Sea. With the potential threats of plastic pollution to both human and ecosystem health, it is of great importance that the input of plastic into marine and freshwater environments is reduced.”

The research of Katherine McCoy (Royal Holloway and NHM), in collaboration with river clean-up charity, Thames21, looked at “flushable” and “non-flushable” wet wipes as a source of plastic pollution in the River Thames and the environmental impacts they have on the invasive Asian clam. Wet wipes found in sewage effluent are deposited in large numbers on the foreshore on the south bank, just upstream from Hammersmith Bridge, creating massive wet wipe reefs. This study demonstrated that high densities of wet wipes are associated with low population numbers of clams, and vice versa. It was found that clams adjacent to the wet wipe reefs contained synthetic polymers, some of which may have originated from the wet wipe reefs and other pollutants found on the site such as sanitary items.

Katherine McCoy, said: “This research highlights the impacts of improper waste disposal on our environment, especially the flushing of wet wipes. These products are often described as flushable, but they have been known to block sewage pipes by contributing to fatbergs and have now been seen to cause environmental disruption on the foreshores of the river Thames. Our study shows that stricter regulations are needed for the labelling and disposal of these products. There is great scope to further research the impacts of microplastics and indeed microfibres on Thames organisms.”

Dr Paul Clark, Life Sciences Department, NHM said “I was born in London and as a child I remember the Thames as a heavily polluted river which led to the decline of its fish populations. When the Government ordered a clean-up of the catchment the River returned back to life. What our students have shown in this collaboration is that although the Thames is certainly cleaner with regards some chemical pollutants, e.g. heavy metals, the River is severely polluted with plastic. And once again our wildlife is threatened.”

Professor Dave Morritt from the Department of Biological Sciences at Royal Holloway, said: “Taken together these studies show how many different types of plastic, from microplastics in the water through to larger items of debris physically altering the foreshore, can potentially affect a wide range of organisms in the River Thames.

“The increased use of single-use plastic items, and the inappropriate disposal of such items, including masks and gloves, along with plastic-containing cleaning products, during the current Covid-19 pandemic, may well exacerbate this problem.

“Thames Water has recently reported an increase in wet wipe-related blockages of sewer systems and when the Covid-19 restrictions on fieldwork are lifted, it would be interesting to find out the prevalence of these products in the River Thames.

“We must not forget that, although these studies illustrate the problem on a local scale, plastic pollution is very much a global issue.”

Anna Cucknell, ZSL’s Thames Project Manager, said: “Plastic pollution is devastating for aquatic ecosystems and I was shocked by the densities we found. Our study showed the majority of microplastics in the Thames are created by larger plastic items breaking down which is why the #OneLess campaign, led by ZSL and partners, is working to reduce single use plastic water bottles in London. To date it has eliminated 4.4 million single-use plastic water bottles from London's supply chains and removed 114,000 from the Thames. Thanks to decades of conservation two species of seal and more than 100 species of fish including sharks, seahorses and the Critically Endangered European eel, call the Thames Estuary home. We must not let plastic pollution threaten their survival.”

Ends

Notes to Editor

Media contact: Tel: +44 (0)779 969 0151 Email: press@nhm.ac.uk

References

Alexandra R McGoran, Paul F Clark, Brian D Smith, David Morritt. 2020. High prevalence of plastic ingestion by Eriocheir sinensis and Carcinus maenas (Crustacea: Decapoda: Brachyura) in the Thames Estuary. Environmental Pollution. dx.doi.org/10.1016/j.envpol.2020.114972

Katherine A McCoy, Daniella J Hodgson, Paul F Clark, David Morritt. 2020. The effects of wet wipe pollution on the invasive Asian clam, Corbicula fluminea (Mollusca: Bivalvia) in the River Thames, London. Environmental Pollution. 264: 114577. https://dx.doi.org/10.1016/j.envpol.2020.114577

Katharine H Rowley, A-C Cucknell, Brian D Smith, Paul F Clark, David Morritt. 2020. London’s river of plastic: Thames densities are some of the highest recorded in the world. Science of the Total Environment. 740: 140018. https://doi.org/10.1016/j.scitotenv.2020.140018

About the Natural History Museum:

The Natural History Museum is both a world-leading science research centre and the most-visited natural history museum in Europe. With a vision of a future in which both people and the planet thrive, it is uniquely positioned to be a powerful champion for balancing humanity’s needs with those of the natural world.

It is custodian of one of the world’s most important scientific collections comprising over 80 million specimens. The scale of this collection enables researchers from all over the world to document how species have and continue to respond to environmental changes - which is vital in helping predict what might happen in the future and informing future policies and plans to help the planet.

The Museum’s 300 scientists continue to represent one of the largest groups in the world studying and enabling research into every aspect of the natural world. Their science is contributing critical data to help the global fight to save the future of the planet from the major threats of climate change and biodiversity loss through to finding solutions such as the sustainable extraction of natural resources.

The Museum uses its enormous global reach and influence to meet its mission to create advocates for the planet - to inform, inspire and empower everyone to make a difference for nature. We welcome over five million visitors each year; our digital output reaches hundreds of thousands of people in over 200 countries each month and our touring exhibitions have been seen by around 30 million people in the last 10 years.

About Royal Holloway, University of London – royalholloway.ac.uk

Royal Holloway, University of London, is ranked in the top 20 universities in the UK[1].   Through world class research that expands minds and changes lives, the dedication of our teachers and the feel of the Royal Holloway experience, ours is a community that inspires individuals to succeed academically, socially and personally.

The university was founded by two social reformers who pioneered the ideal of education and knowledge for all who could benefit. Their vision lives on today.  As one of the UK’s leading research-intensive universities we are home to some of the world’s foremost authorities in the sciences, arts, business, economics and law.  We are strengthened by diversity, and welcome students and academics who travel from all over the world to study and work here, ensuring an international and multi-cultural perspective within a close knit and historic campus.

About ZSL:

ZSL (Zoological Society of London) is an international conservation charity working to create a world where wildlife thrives. From investigating the health threats facing animals to helping people and wildlife live alongside each other, ZSL is committed to bringing wildlife back from the brink of extinction. Our work is realised through our ground-breaking science, our field conservation around the world and engaging millions of people through our two zoos, ZSL London Zoo and ZSL Whipsnade Zoo. For more information, visit www.zsl.org

CN Rail recalls some of 4,000 laid-off workers as COVID woes ease


Christopher Reynolds, The Canadian Press

CANADIAN NATL RAILWAY CO (CNR:CT)
128.69 1.11 (0.86%)
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MONTREAL, Ont. -- Canadian National Railway Co. has laid off about 4,000 employees from its workforce this year as profits sagged 60 per cent in the second quarter amid fallout from the COVID-19 pandemic.

Shipments declined nearly across the board, prompting layoffs that left the country's largest railroad operator down 5,100 employees from June 2019, when it had some 26,500 workers.

Roughly 3,000 of the 4,000 workers who were let go in 2020 are on furlough -- meaning they can be recalled if business picks up -- while some 1,000 others were permanently laid off, said CEO JJ Ruest.

"We unfortunately had to do quite a few layoffs. The good news is we're starting to recall some people back to work," Ruest said on a conference call with analysts on Tuesday.

The pandemic "adversely impacted" earnings, with revenue from auto and petroleum/chemicals shipments dropping 72 per cent and 25 per cent year-over-year, respectively, CN said.

Container shipments -- CN's most lucrative category at $874 million, accounting for close to one-third of freight revenue -- declined by 12 per cent as consumer spending plummeted amid lockdowns and store closures.

The railway's "trough" in May saw furlough numbers peak in lockstep with low points such as a 90 per cent plunge in auto revenue that month, Ruest said.

Cautious optimism remains, however. After taking 14,500 cars off the tracks between April and June, CN has started to bring some out of storage for auto and lumber traffic. With more cars come more recalled workers.

"We're very methodical about bringing them back," said chief operating officer Rob Reilly. "We're still trying to figure out what the future volume's going to be."

Grain and fertilizer shipments held firm in the second quarter, helping to mitigate damage from other categories at the company.

CN set records for grain volume in four consecutive months this year. The planned acquisition of 1,500 high-capacity hopper cars aims to continue that trend, CN said.

Nonetheless, net income dropped to $545 million in the quarter ended June 30, compared with $1.36 billion a year earlier.

Revenue decreased by $750 million or 19 per cent year-over-year to $3.21 billion in the second quarter, the Montreal-based company said.

On an adjusted basis, diluted earnings per share fell 26 per cent to $1.28 from $1.73, matching analyst predictions, according to financial markets data firm Refinitiv.

Outlook still remain uncertain: CN Rail analyst on earnings



Related
Canada's two largest railways move record grain in June, second quarter

CAPITALISM IN CANADA SURVIVES COVID-19

Retail sales rebound in Canada, recouping all of pandemic losses

Canadian retail sales have rebounded sharply after historic declines in March and April, with vendors making up almost all of their pandemic losses, Statistics Canada reported Tuesday.

Receipts rose 19 per cent in May, the agency said in its first full release for the month. June looks to have recorded another strong gain, with a flash estimate predicting another 25 per cent increase. That would bring sales last month to about 100 per cent of February levels, according to Bloomberg calculations.

The report confirms Canadian consumers are emerging from nationwide lockdowns with pent up demand and keen to spend. At issue is whether the sharp rebound will be sustained in coming months. Policy makers have warned a full rebound in consumer confidence could take years.

“At the moment, sales are still being buoyed by the enormous government income-support programs and consumers satisfying pent-up demand, both of which could fade in the second half of the year,” Royce Mendes, an economist at CIBC World Markets, said in a report to investors.

The Canadian dollar was little changed on the news, but was already trading higher on the day -- up 0.7 per cent to $1.3437 per U.S. dollar at 12:32 p.m. Toronto time.



The retail numbers are consistent with alternative spending data tracked by Canadian banks, which have been showing consumers are eager to spend.

According to a report Tuesday by Toronto-Dominion Bank, consumer spending growth moved into positive territory in early July on an annual basis for the first time since the pandemic started. Three provinces -- British Columbia, Alberta, and Ontario -- have been driving the national improvement in consumption, the bank said.

“Re-openings have so far been by and large met with increased spending,” Brian DePratto, a senior economist at Toronto-Dominion, said in the report.

Still, economists caution that the pace of spending growth will slow with millions of Canadians still out of work and restrictions on some businesses likely to remain for some time.

Support Shift

Prime Minister Justin Trudeau is searching for a way to shift citizens from a $2000 a month benefit fund back into the workforce. The $80 billion Canada Emergency Response Benefit runs until Oct. 3.

“CERB payments have recently been extended by Ottawa but they will eventually end. Barring a massive rebound in employment, this will squeeze household income and weigh on retail sales later this year,” Jocelyn Paquet, an economist at National Bank Financial in Montreal, wrote in a report to investors.

Retail sales in May were up in nearly all sub-sectors except food and beverage stores, which had already posted a record increase in March. The gain in sales coincided with the reopening of many brick and mortar retailers across the country after emerging from pandemic shutdowns.

Auto sales led gains, jumping 66 per cent. Excluding this sector, retail sales were up 10.6 per cent on the month. Economists in a Bloomberg survey had expected a 20 per cent gain in May sales, and a 12 per cent increase excluding autos. The statistics agency didn’t provide industry-specific estimates for June.

Even with the increase in May and June, the second quarter will go into the books as among the worst ever for Canadian retailers. Based on the June flash estimate, quarterly sales were down 15 per cent in the three months from the prior period, according to Bloomberg calculations.

PANDEMIC PROFITEERING
Moderna, Merck say they will not limit price of coronavirus vaccines to company cost
(Reuters) - Moderna Inc and Merck & Co on Tuesday told a U.S. Congressional panel that they expect to profit from their coronavirus vaccines once approved, amid concerns the vaccines may not be accessible to all.

“We will not be selling our vaccine at cost, although it is premature for us as we’re a long way from understanding the cost-basis,” Julie Gerberding, chief patient officer for Merck, told the House of Representatives subcommittee on oversight and investigations in a virtual, off-site hearing.

Merck’s has yet to begin human studies of its experimental vaccine, lagging the leading candidates.

Executives from Johnson & Johnson and AstraZeneca Plc testified that they will price their respective potential vaccines at no profit while the pandemic rages on.

Gerberding and a representative from Moderna did not comment on the price they have in mind for their vaccines at the hearing, which focused on efforts to develop a safe, effective and widely accessible vaccine against COVID-19, which has claimed 600,000 lives globally.


Pfizer Inc has said the company intends to make a profit from its potential coronavirus vaccine if approved. However, Pfizer Chief Business Officer John Young, testified: “We recognize that these are extraordinary times and our price will reflect that.”

Unlike rivals Moderna and AstraZeneca, Pfizer has not received funding from the United States for its vaccine development.

Lawmakers questioned whether Pfizer had declined government funding so it could price the vaccine at a profit.

“We didn’t access federal funding solely for the reason that we wanted to move the vaccine faster to the clinic,” Young said.

AstraZeneca said its vaccine would be provided at no profit under its agreement with the United States for allocation of some 300 million doses.


More than 150 coronavirus vaccines using a variety of technologies are in development globally, with some two dozen already in human trials. The aim is to produce vaccines that can end the pandemic by protecting billions of people from infection or severe illness. Whether any will succeed or be available by the U.S. government’s stated goal of having one by late this year remains far from clear.

“Speed is important,” Gerberding said of the vaccine development, “but we will not compromise scientific efficacy, quality, and above all, safety, despite the sense of urgency we all feel.”

Uber defends business model in UK court battle over workers' rights

LONDON (Reuters) - Uber was defending its business model on Tuesday at Britain’s Supreme Court in a battle over rights in the workplace that could have ramifications for millions of Britons earning a living in the gig economy.

In a case brought by two drivers, a London employment tribunal ruled in 2016 that they were entitled to workers’ rights such as the minimum wage, paid holidays and rest breaks.

As things stand, Uber drivers are treated as self-employed, meaning they are legally entitled only to minimal protections.

Whilst the drivers point to a contractual relationship with the firm, Uber says there is a looser set-up.

“Drivers were under no obligation to use the app at any time, or to accept trips offered to them; Uber did not pay them for any services and the drivers incurred all necessary expenses,” the company said in a legal document.

The Silicon Valley-based firm has lost two appeals in the case, prompting it to seek a hearing at the Supreme Court which is considering the matter on Tuesday and Wednesday.

A judgement is not expected until at least October. If Uber loses, the firm is highly unlikely to be able to appeal and a further tribunal hearing may be needed to decide how the ruling is applied in practice.

Other firms in the gig economy use a similar business model, where people work for one or more companies without fixed contracts.

Uber faces similar cases elsewhere with Canada’s top court in June finding in favour of a driver in a case that paves the way for a class action suit calling for the company to recognize drivers there as employees.

Separately, in London, the company is trying to win back its licence after the city’s transport regulator stripped it of its right to operate in November for the second time in just over two years. Its appeal will be heard in September.