The Daily Chase: Bay Street reacts to Freeland's budget; Jobs day in Canada
BNN Bloomberg
Some simple questions today to help frame our ongoing analysis of the federal government’s 304-page budget: what does it say about Canada’s economy, the government’s strategy for shaping that economy, and the message it sends to investors around the world?
Some simple questions today to help frame our ongoing analysis of the federal government’s 304-page budget: what does it say about Canada’s economy, the government’s strategy for shaping that economy, and the message it sends to investors around the world?
Of everything that I heard from our guests yesterday afternoon and read in analysis, it’s this commentary from National Bank Financial Vice-Chair Ray Williams that stands out most:
“We are not the U.S. — Canada is not the safe haven target when you have a flight to quality in the market … The last two years, the Bank of Canada has essentially vacuumed up all the debt issued to fund the pandemic. Our central bank is no longer growing that balance sheet. And investors are being asked to finance us. ... So we might want to be mindful and signal, as I mentioned previously, we actually care about what it is that we're doing here.”
Those words will compel us to hunt down perspective from influential investors. Stay tuned as well for Amanda’s conversation with Deputy Prime Minister and Finance Minister Chrystia Freeland, who swatted down the perception that she tabled a “big-spending, big-government budget” as a “gross mischaracterization.” And we’ll get David Rosenberg’s take on all of this at 9:40 a.m.
WHAT THE BUDGET MEANS FOR BUSINESS
“The fundamental question again comes down to the messaging that comes from the highest possible levels within government; do they see business as a partner or the problem,” said Canadian Chamber of Commerce CEO Perrin Beatty when we spoke with him late yesterday afternoon. Maybe the answer is both.
