The Canadian dollar, which had been one of the best-performing G10 currencies in the world this year, fell significantly on Friday.

Driving the news: A slide in oil prices and reduced expectations for a rate hike from the Bank of Canada also hurt the loonie, which is edging towards its lowest level of the year against the U.S. dollar. Canada's economy grew at its slowest past in 2.5 years in the last quarter of 2018 and some economists say first quarter GDP growth this year will be even weaker.

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Data: Factset; Chart: Axios Visuals

"While a slowdown was widely expected in the final months of the year due to falling oil prices, it's a much bleaker picture than anyone anticipated," Bloomberg notes.

Why it matters: That's bad news for the global economy and especially bad news for Canadian Prime Minister Justin Trudeau.

The big picture: A downward revision in the Q4 2018 numbers and a negative print on the Q1 2019 numbers would put Canada in a recession. That could mean 2 of the world's 10 largest economies in a recession, with Canada joining Italy, which fell into recession at the end of 2018.

For Trudeau, the news couldn't come at a worse time.

  • Canada's former attorney general and justice minister testified on Wednesday that Trudeau pressured her to drop corruption charges against an engineering company from Trudeau's hometown.
  • Andrew Scheer, the Canadian Conservative leader who hopes to unseat Trudeau in the Oct. 23 election, sent a letter to authorities requesting an investigation into the allegations.
  • New Democratic Party Leader Jagmeet Singh, who just won election over a member of Trudeau's party in British Columbia, also is demanding a public inquiry.
  • Trudeau's Liberals have recently lost their lead in the polls, claiming 33.9% of the vote, below the Conservatives' 35.8%, Time reports.

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Updated 8 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Annelise Capossela/Axios

  1. Global: Total confirmed cases as of 1:30 p.m. ET: 20,412,501 — Total deaths: 744,649— Total recoveries: 12,629,465Map.
  2. U.S.: Total confirmed cases as of 1:30 p.m. ET: 5,163,509 — Total deaths: 164,994 — Total recoveries: 1,714,960 — Total tests: 63,252,257Map.
  3. Politics: Pelosi on state of coronavirus stimulus talks: "It's a chasm"
  4. Business: U.S. already feeling effects of ending unemployment benefits.
  5. Public health: America is flying blind on its coronavirus response.
  6. Education: Gallup: America's confidence in public school system jumps to highest level since 2004.

Pelosi on state of coronavirus stimulus talks: "It's a chasm"

Democrats and the Trump administration remain "miles apart" on negotiations over a coronavirus stimulus deal, House Speaker Nancy Pelosi (D-Calif.) said on Wednesday.

Driving the news, via Axios' Dion Rabouin: Congress' failure to renew enhanced unemployment measures for millions of Americans at the end of July is already affecting consumer spending patterns, holding down retail purchases and foot traffic, economists at Deutsche Bank say.

2 hours ago - World

U.S. threatens to veto UN peacekeeping in Lebanon over Hezbollah concerns

Peacekeepers with Lebanese troops in southern Lebanon. Photo: Jalaa Marey/AFP via Getty

The Trump administration is threatening to veto a resolution to extend the UN's long-standing peacekeeping mission in southern Lebanon if its mandate isn't changed, Israeli and U.S. officials tell me.

Why it matters: The U.S. is the main funder of the UN Interim Force in Lebanon (UNIFIL), which has an annual budget of $250 million. The veto threat is a tactical move, and part of a broader effort to put pressure on Iran and its proxy in Lebanon, Hezbollah.