Bank of Canada may need to cut interest rates a week from now, but domestic governments are also looking to step up their capital programs to stimulate an economy’s that lacking in vitality.
On Tuesday, Nova Scotia’s government announced a $1.04 billion capital spending plan — the largest in the province’s history. Last week, the British Columbia provincial government earmarked a record $22.9 billion on infrastructure in the next three years for a number of projects that would create 100,000 jobs.
“We are only two provincial budgets into the 2020 season, but so far the key theme in both (B.C. and Nova Scotia) has been clear: These provinces are decisively moving away from stable/falling net debt-to-GDP ratios, in favour of ramped up capital spending programs,” notes Robert Kavcic, senior economist at BMO Capital Markets. “Note that this keeps operating balances positive, but lifts debt-to-GDP ratios.”
On Thursday, analysts will be watching Alberta Premier Jason Kenney’s budget, which may offer some relief to businesses of the beleaguered province.
“At this point, information in hand from 2020 budgets and 2019 fiscal updates/capital plan projections points to roughly 3%-to-4% growth in the overall provincial capex program,” Kavcic said. “If this theme continues, it would offset the restraint expected on the operating/taxation side.”
Prime Minister Justin Trudeau is also expected to unveil his minority government’s federal budget at some point next month. While no date has been set, last year’s budget was unveiled on March 19.
The economic situation has taken a dire turn, as the coronavirus crisis continues to escalate. Latest data from the Canadian economy has been less than stellar with retail and manufacturing data showing anemic growth.
Here’s what you need to know this morning:
Chief negotiator Steve Verheul and chief economist Marie-France Paquet from Global Affairs Canada appear before the House of Commons trade committee on Bill C-4 in Ottawa
CRTC hearings on mobile wireless services in Gatineau, Que., Sleep Country Canada Holdings Inc.
Infrastructure event regarding funding for public transit with Catherine McKenna, Minister of Infrastructure and Communities in Stratford, Ont.
BlockSidewalk meeting to oppose Waterfront Toronto and Sidewalk Labs project in Toronto
Indian Resource Council hosts the Indigenous Participation in Major Projects Conference at the Calgary Westin Airport. Premier Jason Kenney to speak at 9 a.m. on Day 1
If you’re a millennial just embarked on saving and investing, you should know the opportunity to put another $6,000 into your TFSA as of Jan. 1 each year is one you shouldn’t pass up. Why? There are a million reasons why doing so every January for the next 45 years is your best route to building a hefty retirement fund, writes Jonathan Chevreau.
Article amended to reflect performance of other jurisdictions in Canada in the Fraser Institute survey
— Please send your news, comments and stories to yhussain@postmedia.com. — Yadullah Hussain @Yad_Fpenergy
With files from The Canadian Press, Thomson Reuters and Bloomberg
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
