Latest news with #FallEconomicStatement
Cision Canada
5 days ago
- Business
- Cision Canada
CFIB statement on the need for the 2025 budget Français
TORONTO, June 3, 2025 /CNW/ - We're pleased to see talk in Ottawa about advancing a spring budget after all. Small businesses are waiting on word on at least five outstanding measures from the 2024 budget and Fall Economic Statement (FES). They include: The tax status of the $2.5 billion small business carbon rebate delivered in December (CRA says it is taxable until government introduces a change). Changes to and delivery of the $623 million small business carbon rebate for 2024/25 (the FES proposed a new formula and government is now sitting on the rebates). A legislative change to allow businesses to qualify for the earlier carbon rebate by filing their returns for those years before Dec. 31, 2024. A bump in the Lifetime Capital Gains Exemption (LCGE) to $1.25 million backdated to June 25, 2024 (introduced but not passed, promised by Prime Minister Carney too). The fate of the new Canadian Entrepreneurs' Incentive (backdated to Jan. 1, 2025) to lower the inclusion rate to 33% on a lifetime maximum of $2 million in eligible capital gains. All of these measures are supposed to be in place today, but were delayed due to the filibuster, prorogation of Parliament and election. Only one is temporarily supported by CRA (the LCGE change). A budget would provide the window for government to introduce the legislation, which should all be ready to go from the last Parliament. Without action, small businesses filing their 2024 taxes in June are required to pay corporate income tax on their share of the $2.5 billion carbon rebate they've already received and spent. Then, CRA is suggesting 600,000 small business owners file an amendment to get the tax back when the legislation change is made. This makes no sense at all. Among the best things the federal government could do to address the massive economic and trade uncertainty facing SMEs is to provide them with certainty on these tax measures. They have all been promised, are ready to go and should be part of a 2025 budget this legislative session. - Dan Kelly, President, CFIB About CFIB The Canadian Federation of Independent Business (CFIB) is Canada's largest association of small and medium-sized businesses with 100,000 members across every industry and region. CFIB is dedicated to increasing business owners' chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at
Yahoo
5 days ago
- Business
- Yahoo
CFIB statement on the need for the 2025 budget
TORONTO, June 3, 2025 /CNW/ - We're pleased to see talk in Ottawa about advancing a spring budget after all. Small businesses are waiting on word on at least five outstanding measures from the 2024 budget and Fall Economic Statement (FES). They include: The tax status of the $2.5 billion small business carbon rebate delivered in December (CRA says it is taxable until government introduces a change). Changes to and delivery of the $623 million small business carbon rebate for 2024/25 (the FES proposed a new formula and government is now sitting on the rebates). A legislative change to allow businesses to qualify for the earlier carbon rebate by filing their returns for those years before Dec. 31, 2024. A bump in the Lifetime Capital Gains Exemption (LCGE) to $1.25 million backdated to June 25, 2024 (introduced but not passed, promised by Prime Minister Carney too). The fate of the new Canadian Entrepreneurs' Incentive (backdated to Jan. 1, 2025) to lower the inclusion rate to 33% on a lifetime maximum of $2 million in eligible capital gains. All of these measures are supposed to be in place today, but were delayed due to the filibuster, prorogation of Parliament and election. Only one is temporarily supported by CRA (the LCGE change). A budget would provide the window for government to introduce the legislation, which should all be ready to go from the last Parliament. Without action, small businesses filing their 2024 taxes in June are required to pay corporate income tax on their share of the $2.5 billion carbon rebate they've already received and spent. Then, CRA is suggesting 600,000 small business owners file an amendment to get the tax back when the legislation change is made. This makes no sense at all. Among the best things the federal government could do to address the massive economic and trade uncertainty facing SMEs is to provide them with certainty on these tax measures. They have all been promised, are ready to go and should be part of a 2025 budget this legislative session. - Dan Kelly, President, CFIB About CFIB The Canadian Federation of Independent Business (CFIB) is Canada's largest association of small and medium-sized businesses with 100,000 members across every industry and region. CFIB is dedicated to increasing business owners' chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at SOURCE Canadian Federation of Independent Business View original content to download multimedia: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-05-2025
- Business
- Yahoo
Pelletier: Many investors remain unaware of the scale of the unfolding bond crisis
The global bond market is facing increasing turmoil, with long-term yields rising across major economies and governments struggling to manage growing debt burdens. Many investors remain unaware of the scale of this unfolding crisis, but recent developments suggest the next phase of financial instability may be driven by weakness in sovereign debt markets. Japan's 30-year government bond yield surged to an all-time high last week of 3.14 per cent, following a weak bond auction that highlighted investor concerns over the country's fiscal stability. The 40-year yield also hit a record 3.6 per cent, reflecting broader unease about Japan's ability to manage debt without causing market disruptions. The Bank of Japan (BOJ) is now stuck in a dilemma. If it raises interest rates to defend the yen or combat inflation it risks increasing debt servicing costs, which could exceed 30 trillion yen (about $289 billion) in fiscal 2025 if rates rise just one per cent beyond expectations. Conversely, keeping rates low risks destabilizing Japan's bond market, as investor demand for long-term Japanese government bonds has weakened significantly. This may have implications reaching beyond its borders as Japan holds about US$1.13 trillion in U.S. Treasuries, making it the largest foreign holder of U.S. debt. Japanese institutions had already sold off US$119.3 billion worth of U.S. Treasuries in just one quarter, marking the steepest quarterly decline since 2012. This suggests Japan may be offloading U.S. debt to fund domestic obligations or defend the yen, potentially triggering broader market shocks. The situation in Japan is mirrored in the United States, where Treasury auctions are also showing signs of strain. A US$16 billion auction of 20-year Treasury bonds last week saw weaker-than-expected demand, forcing yields higher. The 30-year Treasury yield breached five per cent, reflecting concerns over rising deficits and long-term borrowing capacity. As a result, Moody's downgraded its U.S. debt rating, which has intensified investor skepticism. The Federal Reserve's uncertain monetary policy and growing fiscal instability have further contributed to higher risk premiums for U.S. long-term Treasuries. As confidence in government debt declines, borrowing costs could rise, further exacerbating deficit concerns. Despite growing pressure from bond markets, governments continue to resist spending cuts. The United States leads in deficit spending, with a deficit that was equivalent to 6.4 per cent of GDP in 2024, according to the U.S. Congressional Budget Office. This is compared to other larger economies, according to Trading Economics, such as France (5.8 per cent of GDP in 2024), the United Kingdom (4.8 per cent in 2024) and Germany (2.8 per cent in 2024). Canada's deficit to GDP ratio was two per cent, according to the government's 2024 Fall Economic Statement. Interestingly some countries have moved toward budget surpluses, such Norway, with -13.20 per cent of GDP in 2024 according to Trading Economics, showing that fiscal discipline is possible despite global headwinds. There is growing concern that trade uncertainty, particularly in the wake of policy shifts by the Trump administration, could serve as an excuse for governments to maintain large deficits. The spectre of new tariffs, trade wars, and economic retaliation could add further pressure to already fragile bond markets. Bond markets are applying increasing pressure on governments to confront their fiscal realities, but policymakers seem unwilling to rein in spending. This means that sovereign debt markets will continue to dictate economic conditions in the months ahead, making it critical for fixed-income investors to adapt before the landscape shifts even further. Rising long-term yields translate to lower returns for bondholders, threatening the traditional 60/40 balanced portfolio. Investors may need to reassess their fixed-income strategies, but caution is required as shifting entirely into equities introduces substantial risks. Additionally, with governments potentially using inflation as a stealth tool for debt repayment, investors should consider having some exposure to real assets such as commodities to protect purchasing power. Dividend-paying companies in stable sectors such as Canadian utilities can offer defensive income, though volatility will remain elevated. For those seeking alternative income sources, structured notes have proven to be a resilient option. When riding the market whiplash, structured notes can smooth the journey Ask yourself as an investor: What would Buffett do? The unfolding crisis in global bond markets is not something investors can afford to ignore. As debt burdens expand and fiscal discipline remains elusive, adaptability will be the key to preserving wealth. Investors must embrace diversification, balancing fixed income, real assets, structured products and select equities to shield their portfolios from mounting risks. While volatility may continue to dominate markets, strategic positioning can help navigate these turbulent times with confidence. Martin Pelletier, CFA, is a senior portfolio manager at Wellington-Altus Private Counsel Inc., operating as TriVest Wealth Counsel, a private client and institutional investment firm specializing in discretionary risk-managed portfolios, investment audit/oversight and advanced tax, estate and wealth planning. The opinions expressed are not necessarily those of Wellington-Altus. _____________________________________________________________ If you like this story, sign up for the FP Investor Newsletter. _____________________________________________________________ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
'Big gains to be had' if Canada's pension fund giants invested more at home: Desjardins
Even a small shift in Canada's enormous pension funds' investment focus towards domestic assets could lead to 'big gains' in the domestic market, a new report from Desjardins Economic Studies says. Most of the funds' roughly $3.6 trillion in investments are currently in foreign assets, Desjardins foreign exchange strategist Mirza Shaheryar Baig writes, but there is an appetite for change both within government and the institutions. 'Due to their large size relative to the domestic market, any shift in their asset allocation or currency hedge ratios can have a significant impact on financial markets, and current market dynamics suggest that there is some scope for change.' Of that $3.6 trillion — an amount that easily exceeds the total value of Canadian mutual funds and ETFs combined — around $1 trillion is managed by the Canada Public Pension Investment Board (CPPIB) and the Caisse de dépôt et placement du Québec (CDPQ), Baig says, while the rest is with 'various employer‑based or trusteed pension plans' such as the Ontario Teachers' Pension Plan. The funds take in money from their investments and worker contributions, but also pay out benefits. Whatever remains needs to be invested, Baig says. That amount is typically very large and typically invested outside the country. In 2024 it was around $105 billion, the Desjardins report says, with $31 billion from excess contributions, and $74 billion from investment income . The funds will likely need to spend a similar amount this year. An emerging movement to encourage the funds to invest more in Canada may be gathering force. Desjardins notes that several small measures in the federal government's Fall Economic Statement were designed to encourage more domestic pension investment, and since then the 'buy Canadian' movement spurred by trade tensions with the U.S. has brought the funds' investing might into even sharper focus. This week, the head of the CPPIB said in an interview with The Canadian Press the fund was 'excited' about investing in potential large-scale infrastructure projects championed by the newly-elected prime minister, Mark Carney. Overall, good macroeconomic policies and an investment-friendly environment could achieve the best of both Shaheryar Baig, Desjardins Economic Studies The government would need to build on the 'tweaks' in the Fall Economic Statement to improve the investment landscape for the funds, Baig writes, but doing so could result in a 'win-win' situation. 'Canada will need to expand investment in infrastructure in the coming years, and these projects could be well suited to the funds' long‑term investment objectives,' Baig says. 'Moreover, deepening capital markets and encouraging more corporate listings in Canada would help too. Overall, good macroeconomic policies and an investment-friendly environment could achieve the best of both worlds.' The report notes that even a one per cent shift by the social security funds out of international assets would leave them with around $10 billion to invest in Canada. A similar move by the trusteed pension funds would yield $24 billion. Another area where the funds' clout could have impact is foreign exchange and the loonie, the report says. Most of the funds' U.S. dollar-valued investments are unhedged given the long-held reputation of that currency as a safe haven, with an expectation that the U.S. dollar would appreciate against the loonie during volatile markets. 'However, this belief is now being openly questioned,' Baig writes. 'The loonie has become very undervalued on a range of metrics.' If the funds were to adjust their currency hedge ratios, Baig says, 'even a modest hedging program would lead to the Canadian dollar outperforming its usual relationship with fundamental drivers' such as interest rate differentials. Although the report declares that 'there are big gains to be had,' it also cautions that creating the conditions where these gains are possible could be challenging. ' Foreign assets have returned more than local assets for several years,' Baig notes. 'And it could take time for any changes in government policies to translate to a shift in strategic asset allocation targets.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Epoch Times
19-05-2025
- Business
- Epoch Times
Federal Government Won't Table Budget This Year, Finance Minister Says
The Liberal government will not be tabling a budget after the House of Commons returns shortly, but will instead table a Fall Economic Statement, according to Finance Minister François-Philippe Champagne. 'We're going to be introducing ways and means motions as we enter back into Parliament, we'll table legislation, then there'll be a throne speech, and then we'll present a fall Economic Statement,' Champagne told reporters in Parliament on May 14 following the government's first cabinet meeting. The finance minister said the first measure the government will introduce when Parliament returns is the one percent cut to the bottom income tax bracket the Liberals had promised during the election campaign. 'This is a way for all parliamentarians to show up and say, 'Yes, we support Canadians' at the time when they need a break,' he said. Minutes earlier, TV cameras and photographers were allowed into the cabinet room following the first meeting to witness Prime Minister Mark Carney sign a directive for Champagne to get to work on the tax cut. 'Canadians sent a clear message. They need to see improvements in their affordability,' Carney said before signing the decision note. 'It's my pleasure on behalf of the cabinet to sign this order to deliver that tax cut.' Related Stories 5/13/2025 5/14/2025 Matters of taxation are decided on by Parliament, meaning Carney will still need to pass legislation for the tax cut when Parliament returns on May 26. Conservative Leader Pierre Poilievre said in a statement on social media that it was 'unacceptable' for the Liberals not to be tabling a budget. 'After months of building expectations and promising serious leadership, Carney announced he will deliver nothing,' Poilievre said. Poilievre said with Parliament having been shut down for almost half a year and Canada facing 'serious economic threats' from the U.S. tariffs, not introducing a budget was a 'betrayal of workers and families across the country who expected this government to lay out its plan.' The Liberals' costed platform calls for $129 billion in Carney has not stated that he intends to balance the federal budget. Carney told reporters on April 21 that the platform signalled a 'fundamentally different approach' to respond to 'the worst crisis of our lifetimes' of U.S. tariffs. Housing, Economy Other ministers took their first questions from media around the cabinet meeting on issues of internal trade, housing, and the economy. Minister of Transport and Internal Trade Chrystia Freeland told reporters that lifting barriers to internal trade is a priority for the government. She noted that the Housing Minister Gregor Robertson told reporters that the government's plan to double housing was 'ambitious' and would involve leveraging Canadian technology with off-site manufacturing. 'We've got a lot of work to do on this, and it doesn't happen overnight. Housing is a slow-moving creature,' he said. When asked if he believed housing prices needed to come down, Robertson responded that he did not. 'y. We need to be delivering more affordable housing,' he said. Industry Minister Mélanie Joly commented on the news this week that Honda would be 'Our goal is definitely to make sure that we're in solution mode,' Joly said, adding that she wanted to speak with Honda's upper management before the end of the day. She said that the Liberal government wants to create 'economic certainty' in Canada and attract investments, but added that 'there's a lot of uncertainty' due to U.S. tariffs. Natural Resources Minister Tim Hodgson, who was previously a board member of Calgary-based oil sands producer MEG Energy, said he would be travelling to the western provinces 'very soon' and looked forward to working with his provincial and territorial counterparts and indigenous stakeholders to 'build a more prosperous, secure, and safe Canada.'
