Justin Trudeau’s party pledges $62bn in new spending across five years as tight race unfolds before September 20 election.
Canada’s governing Liberal Party has pledged billions of dollars in new investments weeks before a federal election, as the party seeks to garner support amid a tight race and recent gains by the rival Conservatives.
Liberal leader Justin Trudeau unveiled the party’s election platform during a news conference in Toronto on Wednesday, pledging 78 billion Canadian dollars ($62bn) in new spending across five years, with a focus on health care.
The investments would be partially offset by more than 25 billion Canadian dollars ($19.8bn) in new revenue, mostly from a higher tax on profits of banks and insurers and fighting tax evasion, the party said.
“We have a plan to move forward for everyone on health, on housing, on child care, on climate,” Trudeau said during Tuesday’s unveiling of the plan, dubbed Forward For Everyone.
The new investments – to be spread out across five years, from 2021 to 2026 – are in addition to the 101 billion Canadian dollars ($81bn) in extra spending across three years passed in a budget earlier this year.
Justin Trudeau gives a thumb-up at the Metro Toronto Convention Centre during his election campaign tour in Toronto, Ontario, Canada, September 1, 2021 [Carlos Osorio/Reuters]
The Liberals spent heavily on programmes to shield citizens and businesses from the COVID-19 pandemic, driving the national debt and budget deficits to record highs. Trudeau sidestepped repeated questions as to when the budget might be balanced.
“I think it matters to be fiscally responsible. I think it matters to live within our means,” he said. “I think it also matters to be making the right investments so that future generations can prosper.”
Trudeau on August 15 triggered a snap election two years ahead of schedule in a bid to return the Liberals to a majority government, after the party was relegated to a 157-seat minority government in the last vote in 2019.
But recent polling shows a tight race in advance of the September 20 vote, with the Conservative Party of Canada led by Erin O’Toole holding 33.8 percent support, compared with 31.2 percent for the Liberals, according to CBC’s Poll Tracker, which aggregates publicly available election poll data.
Trudeau has faced angry protests on the campaign trail and was forced to cancel an event in the province of Ontario last Friday over safety concerns after a crowd of anti-vaccine and anti-masking demonstrators turned up.
Irate demonstrators also rallied at a second Trudeau campaign event in Ontario during the weekend, “shouting obscenities, uttering death threats against the prime minister and hurling racist and misogynist insults at people of colour and women in his protective detail”, CBC News reported.
Conservative Party leader Erin O’Toole also put forward a big-spending platform [Christinne Muschi/Reuters]
Kyle Seeback, a Conservative Party candidate, said some of his supporters attended the protests and were “no longer welcome” on his campaign.
On Tuesday, the Conservatives hit out at the Liberals’ election platform, with Dan Robertson, chief of strategy for O’Toole, saying on Twitter that it was “more borrowing, more debt, higher taxes, and rising prices”.
O’Toole has also put forward a big-spending platform, but he said on Tuesday he would balance the budget in 10 years “without cuts” and only by boosting revenues through stronger economic growth. The Conservative Party has yet to detail the costs of its platform.
“If he doesn’t show the numbers, why should Canadians believe him?” Trudeau said of O’Toole’s pledge to balance the budget.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
