Canada's capital gains tax rise will further knock productivity, say economists

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Canada's plan to raise taxes on the savings of wealthy people and corporations is likely to hold back investment, potentially adding to the productivity malaise that has held back economic growth in recent years, say economists. The annual budget proposed increasing the share of capital gains subject to taxation to two-thirds from one-half for people with annual investment profits greater than C$250,000 ($181,752) as well as for companies and trusts. Raising capital gains taxes could discourage savings, a key driver of business investment, which fell in the fourth quarter for the sixth time in the last seven quarters and has been unable to sustain a move above the 2014 peak. The new tax measure will affect 0.13% of the population and make the system more fair, according to the Liberal government of Prime Minister Justin Trudeau. However, critics argue that increasing the cost of capital is bad economic policy and will discourage risk-taking, investment, and productivity growth.

#Canada #CapitalGainsTax #Productivity #Investment #Economy

https://ca.news.yahoo.com/canadas-capital-gains-tax-rise-180621286.html

Wall Street stocks mixed on higher Treasury yields, rate expectations

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Wall Street stocks were mixed on Tuesday as Treasury yields climbed. Federal Reserve Chair Jerome Powell said recent inflation data has not given policymakers enough confidence to ease credit soon. The Dow Jones Industrial Average rose 86.69 points, or 0.23%, to 37,821.80. The S&P 500 lost 3.82 points, or 0.08%, to 5,058.00. The Nasdaq Composite gained 2.13 points, or 0.01%, to 15,886.66. Shares of Morgan Stanley added 3.7% after its first-quarter profit beat estimates. Bank of America dropped 3.9% after the lender posted lower first-quarter profits. Johnson & Johnson slipped 1.6% as the drugmaker's revenue missed analysts' estimates. Tesla shed 2.7% after falling over 5% on news of layoffs. Declining issues outnumbered advancers on the NYSE and Nasdaq. The S&P 500 posted one new 52-week high and eight new lows while the Nasdaq recorded 27 new highs and 329 new lows.

#WallStreet #TreasuryYields #InterestRates #Inflation #DowJonesIndustrialAverage #S&p500 #NasdaqComposite #MorganStanley #BankOfAmerica #Johnson&Johnson #Tesla

https://ca.news.yahoo.com/futures-ease-bond-yields-stay-101332322.html

Futures flat in lead up to inflation data

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U.S. stock index futures were flat as investors await the release of the U.S. Consumer Price Index (CPI) for March. The CPI is expected to show a rise in headline inflation to 3.4% year-on-year, with the core figure expected to ease to 3.7% year-on-year. Investors have been scaling back expectations of how much the Federal Reserve will cut interest rates this year. Traders see a nearly 51% chance of at least a 25 basis point cut in June. Minutes from the Fed's March meeting and the first-quarter earnings season are also on the radar.

#StockIndexFutures #InflationData #ConsumerPriceIndex #FederalReserve #InterestRates #EarningsSeason

https://ca.news.yahoo.com/futures-flat-lead-inflation-data-100950201.html

China pushes back on Yellen's excess capacity stance as meetings run long

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China pushes back on U.S. Treasury Secretary Janet Yellen's call to rein in excess production capacity for clean energy goods, calling it a "pretext" for protectionist U.S. policies. Yellen, Chinese Vice Premier He Lifeng, and their teams resumed meetings on a range of economic topics. Yellen expressed concerns over the global economic fallout from China's excess manufacturing capacity, citing overproduction of electric vehicles, solar panels, semiconductors, and other goods. China's state news agency Xinhua accused the U.S. of fear-mongering and protectionism. Yellen is expected to speak with reporters after the meetings.

#China #JanetYellen #ExcessCapacity #CleanEnergyGoods #ProtectionistPolicies #EconomicMeetings

https://ca.news.yahoo.com/us-criticism-chinese-overcapacity-rehashes-025048162.html

Less Canadian dollar upside seen as U.S. election nears

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The Canadian dollar is expected to strengthen less than previously thought over the next year due to sticky inflation potentially delaying Federal Reserve interest rate cuts and uncertainty surrounding the U.S. presidential election, according to a Reuters poll. The median forecast of over 40 foreign exchange analysts predicts that the Canadian dollar will strengthen 0.9% in the next three months to 1.34 per U.S. dollar. However, the currency is expected to advance to 1.31 in a year, falling short of the previous forecast of 1.30. The potential for stronger U.S. inflation and a stronger U.S. dollar, as well as trade measures enacted by former President Donald Trump if re-elected, are cited as factors contributing to the less optimistic outlook for the Canadian dollar. Canada's economy, heavily reliant on trade, particularly with the U.S., is vulnerable to changes in trade policies. The Bank of Canada is expected to maintain its benchmark interest rate at 5% at its next policy decision, but begin a rate-cutting campaign in June or July. Canadian household debt is high, standing at over 180% of disposable income, driven by participation in an undersupplied housing market.

#CanadianDollar #UsElection #Inflation #FederalReserve #Trade #BankOfCanada

https://ca.news.yahoo.com/less-canadian-dollar-upside-seen-110221517.html

Taiwanese TV presenters report quake news as studio shakes during earthquake

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On April 3, 2024, a magnitude 7.2 earthquake hit eastern Taiwan's Hualien at 07:58 AM local time, causing several buildings to collapse. Taiwanese TV presenters from SETTV reported the quake live as the studio shook, describing the strong shaking while trying to keep their balance. The earthquake resulted in nine deaths, over 1,000 injuries, and trapped scores of people inside damaged structures. The earthquake was the strongest in a quarter-century and centered off the coast of rural, mountainous Hualien County. The U.S. Geological Survey measured the magnitude as 7.5. The event occurred during rush hour, and some buildings leaned at severe angles with their ground floors crushed. The earthquake was followed by a tsunami that washed ashore on Japanese islands. The Taiwanese presenters captured the earthquake on live TV, providing a firsthand account of the event.

#Earthquake #Taiwan #TvPresenters #Studio #Hualien

https://ca.news.yahoo.com/taiwanese-tv-presenters-report-quake-052838419.html

Canada 'not interested' in investing in LNG facilities, energy minister says

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Canada's Minister of Energy and Natural Resources, Jonathan Wilkinson, stated in a television interview that Canada is not interested in subsidizing future liquefied natural gas (LNG) projects. Countries such as Greece, Germany, and Japan have expressed interest in purchasing Canada's LNG, while the United States has paused the expansion of American LNG exports. The Canadian government opposes using government money to fund inefficient fossil fuel subsidies and believes that investing in LNG facilities is the role of the private sector. To meet the 2030 target for reducing greenhouse gas emissions, LNG production will need to rely on clean electricity. Prime Minister Justin Trudeau's federal government has set targets to cut emissions by 2030 and requires new LNG proposals to be net-zero emissions in the same timeframe. Trudeau has highlighted the economic difficulties of exporting LNG to Europe from Canada's Atlantic coast and the importance of decarbonizing the global energy supply to combat climate change. The decision by U.S. President Joe Biden to pause American LNG exports has increased pressure on British Columbia and Canada's governments to do the same, although it may be politically challenging to follow suit.

#Canada #Lng #Energy #Investment #GreenhouseGasEmissions #CleanElectricity #FossilFuelSubsidies #ClimateChange

https://ca.news.yahoo.com/canada-not-interested-investing-lng-165455130.html

US requiring new AI safeguards for government use, transparency

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The White House has issued a directive requiring federal agencies using artificial intelligence (AI) to adopt 'concrete safeguards' by Dec. 1 to protect Americans' rights and ensure safety. The Office of Management and Budget directive mandates that agencies monitor, assess, and test AI's impacts on the public, mitigate the risks of algorithmic discrimination, and provide transparency into how the government uses AI. Agencies must also conduct risk assessments and set operational and governance metrics. The new safeguards will include detailed public disclosures about the use of AI by the government. President Joe Biden signed an executive order in October requiring developers of AI systems posing risks to national security, the economy, public health, or safety to share the results of safety tests with the government before public release. The White House also plans to hire 100 AI professionals and require federal agencies to designate chief AI officers within 60 days.

#Ai #Government #Transparency #Safeguards

https://ca.news.yahoo.com/us-requiring-ai-safeguards-government-090657860.html