Money Morneau, economists to hold pre-budget talks

15:51  13 february  2018
15:51  13 february  2018 Source:   MSN

Canada cautious on U.S. tax cuts: Morneau

  Canada cautious on U.S. tax cuts: Morneau TORONTO - The Liberal government will not "act in an impulsive way" in response to U.S. corporate tax cuts that economists say pose a threat to Canada's competitiveness, the federal finance minister said after a pre-budget meeting Friday. Bill Morneau said the government is conducting careful analysis in connection with U.S. President Donald Trump's sweeping tax reforms, which cut the U.S. corporate tax rate from 35 per cent to 21 per cent at the beginning of the year."We are doing our analysis to make sure that we understand the impact of any changes, ... to make sure we get it right and not to act in an impulsive way," he told reporters on Friday.

With so much uncertainty surrounding trade and competitiveness, private-sector economists will press Finance Minister Bill Morneau to keep his fiscal powder dry when they gather later this week for a pre - budget meeting. Real Estate News. Annual pace of housing starts held steady in January.

OTTAWA — With so much uncertainty surrounding trade and competitiveness, private-sector economists will press Finance Minister Bill Morneau to keep his fiscal powder dry when they gather later this week for a pre - budget meeting.

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OTTAWA - With so much uncertainty surrounding trade and competitiveness, private-sector economists will press Finance Minister Bill Morneau to keep his fiscal powder dry when they gather later this week for a pre-budget meeting.

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Canadian banks warn about negative fallout from U.S. tax reforms

  Canadian banks warn about negative fallout from U.S. tax reforms Two of Canada's big banks are sounding the alarm over the negative impact that Canada's economy will see as a result of new tax reform measures in the U.S. under the Trump administration. define("homepageFinanceIndices", ["c.deferred"], function () { var quotesInArticleFormCode = "PRMQAP"; var config = {}; config.indexdetailsurl = "/en-ca/money/indexdetails"; config.stockdetailsurl = "/en-ca/money/stockdetails"; config.funddetailsurl = "/en-ca/money/funddetails"; config.etfdetailsurl = "/en-ca/money/etfdetails"; config.recentquotesurl = "/en-ca/money/getrecentquotes"; config.

OTTAWA — With so much uncertainty surrounding trade and competitiveness, private-sector economists will press Finance Minister Bill Morneau to keep his fiscal powder dry when they gather later this week for a pre - budget meeting.

OTTAWA — With so much uncertainty surrounding trade and competitiveness, private-sector economists will press Finance Minister Bill Morneau to keep his fiscal powder dry when they gather later this week for a pre - budget meeting.

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Morneau is scheduled to sit down Friday in Toronto with leading economists at a roundtable that typically includes about a dozen experts from commercial banks, think tanks and trade associations.

Finance ministers routinely call on outside economists for input and forecasts as part of the budget-writing process. Their projections are averaged to create a fiscal foundation for the budget, which could come as early as this month.

Some economists say that late-2017 improvements in the economy will likely give Morneau more fiscal elbow room in the budget, compared to his October update. Others are less optimistic about the changes in recent months and expect the government to find itself in a similar budgetary position.

Canada suffers biggest job loss in nine years

  Canada suffers biggest job loss in nine years Dismal Canadian job numbers Friday capped off a week of rough financial news, including jaw-dropping volatility on stock markets in Canada and around the globe.Statistics Canada reported record part-time job losses in January that gave Canada’s labour market its biggest one-month drop since the last recession in 2009 — after which stock markets began their bull run.The loss of 137,000 part-time positions was led by Ontario, which hiked its minimum wage by 20 per cent on Jan. 1.A tumultuous week of trading continued Friday, with Toronto’s TSX off more than five per cent since last week and 8 per cent from its all-time high.

Finance Minister Bill Morneau got some ideas for his upcoming budget today from private sector economists . Finance minister meets with private sector economists in Toronto to get their pre - budget advice. CBC News.

Federal finance minister to hold public consultations on budget next week. Federal Finance Minister Bill Morneau started a week of pre - budget consultations today with a warning to Canadians that there are "no quick fixes and no easy answers" to Canada's economy .

But regardless of the fiscal footing, there's agreement that the government should proceed with caution. They want Ottawa to make sure it is ready for the still-unknown impacts of the drawn-out renegotiation of the North American Free Trade Agreement and the U.S. move to slash corporate taxes.

"Those are definitely the big two — there's no question about it — and the kind of chill that that could potentially put on the business investment climate in Canada," said BMO chief economist Doug Porter, whose colleague will attend the Morneau meeting in his place

"That's a tough twosome to deal with."

Last month, the Bank of Canada highlighted the widening negative impacts of NAFTA's uncertain future. The bank not only made a point of emphasizing the potential effects on trade, but also the potential damage on business investment caused by uncertainty itself.

The central bank estimated trade uncertainty would lower investment by two per cent by the end of 2019. It said new foreign direct investment into Canada had tumbled since mid-2016 — a possible consequence of the unknowns around trade.

N.W.T. could get RCMP unit dedicated to unsolved murder and missing person files

  N.W.T. could get RCMP unit dedicated to unsolved murder and missing person files There are 71 unsolved cases of missing and murdered persons in the territory, and this year’s territorial budget proposes a unit to work solely on the cold cases. The unit would consist of three members who would work to organize, catalogue, and investigate cold cases of missing and murdered persons in the territory. These cases can include instances of suspicious deaths, unsolved homicides, missing persons and unidentified human remains.

- Daniel Lauzon, spokesman for Finance Minister Bill Morneau . The pre - budget consultations began Sept. 26, and involve town halls, web-based public discussions, some on Facebook Live and others on Google Hangout, and surveys along with in-person sessions.

Finance Minister Bill Morneau to hold series of public meetings in 6 cities next week. The Conservative government held most of its pre - budget consultations behind closed doors. Despite that access, those private budget talks had their limitations.

The bank also warned that lower corporate taxes in the U.S. could encourage firms to redirect some of their business investments south of the border.

Business associations fear the U.S. tax changes could end up inflicting more damage on the Canadian economy than the possible termination of NAFTA.

Morneau's office has responded to the concerns by arguing that Canada has advantages such as an educated workforce and still boasts a competitive tax rate among G7 countries, even after the U.S. reforms. Ottawa is carefully assessing the U.S. tax changes and will take time to fully understand their potential impacts, his office said in a recent statement.

Scotiabank chief economist Jean-Francois Perrault said he doesn't think the corporate tax changes in the U.S. will have a major impact on Canada — but he admits they could.

Perrault, who will attend Friday's meeting with Morneau, recommends the government hold off on any big spending plans just in case it needs to respond with tax measures of its own to keep Canada competitive.

"It would be very prudent for the government to wait until we see if, in fact, there is evidence that what's happening down south in the U.S. is having a detrimental effect on Canadian business," Perrault said.

Memo to ethics czar: Don’t gag MPs or media

  Memo to ethics czar: Don’t gag MPs or media Two of the greatest bulwarks of a democracy are freedom of expression and a free press. So it was alarming to hear that in his effort to be “tougher” than his predecessor, Canada’s new Ethics Commissioner, Mario Dion, is seeking to gag MPs and impose publication bans. Dion made the disturbing remarks during an appearance last week before a Commons committee while discussing how he believed that ethics investigations should be conducted in private. There’s nothing wrong with that. But then he raised concerns that MPs can tell the media when they’ve filed a complaint and the press can report on it.

Morneau launched pre - budget consultations today with a warning about "worrying" global economic trends. But he also said there's much cause for optimism about Canada's outlook.

With so much uncertainty surrounding trade and competitiveness, private-sector economists will press Finance Minister Bill Morneau to keep his fiscal powder dry when they gather later this week for a pre - budget meeting. Don Martin talks to people and players who dominate the political scene.

Heading into the budget, he thinks the solid economy has given Morneau more fiscal space than he had in the fall.

In October, Morneau's fall fiscal statement predicted a deficit of $18.4 billion in 2017-18 and a $15.6-billion shortfall in 2018-19.

Perrault, a former assistant deputy minister under Morneau, said he now expects Ottawa to be on track for deficits of $16.8 billion in 2017-18 and $14.8 billion in 2018-19.

Porter doesn't think there have been major changes in the government's budgetary outlook since the fall because 2017's surprising strength was largely due to temporary factors. This year, the economy, while still looking relatively healthy, should be a little bit cooler, he added.

Craig Alexander, chief economist for The Conference Board of Canada, predicts the deficit to be about $4 billion smaller in 2017-18.

"But going forward, they're not going to have a lot of extra money in the kitty for new initiatives if they want to keep debt-to-GDP ratio on a downward path," he said.

Following the 2015 election, the Liberal government abandoned pledges to run annual deficits of no more than $10 billion and to balance the books in four years. Instead, it is focused on reducing the net debt-to-GDP ratio — also known as the debt burden — each year.

Alexander would like to see Morneau produce a plan to balance the books, while Perrault is less concerned about it as long as Ottawa keeps lowering the debt-to-GDP.

Porter would also like to see an effort to eliminate the deficit because Canada is entering a late stage in the economic cycle — but it's not his top priority.

"I'm concerned about our tax competitiveness first and foremost, and that's actually where I'd like to see the government concentrate efforts."

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North American stock markets recover .
TORONTO - Canada's main stock index managed to eke out a minor gain Tuesday as U.S. stocks closed sharply higher after another volatile day. The Toronto Stock Exchange's S&P/TSX composite index was ahead 29.12 points or 0.19 per cent at 15,363.93, led by strong gains in the health-care and base metals sectors. Trading was choppy in the early going Tuesday, after the TSX plunged in initial trading before paring its losses to 61.64 points or 0.4 per cent by mid-afternoon.In New York, the Dow Jones industrial average finished the trading session up 567.02 points or 2.33 per cent at 24,912.77 — coincidentally, about the same amount it plunged at the opening of markets.

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