Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.

Canadians Prioritize Essentials Over Tax Refund Investments in High-Cost Era

A recent CIBC poll revealed that just one in ten Canadians plans to invest their tax refund this year, emphasizing a trend where financial obligations take precedence over investment opportunities. The survey illuminates Canadians’ current financial priorities, showing the challenges they face in balancing their financial needs amidst rising costs, debt burdens, and the necessity of saving for emergencies.

The findings reflect a pragmatic shift in mindset among Canadians, with many prioritizing immediate financial concerns over long-term investments due to economic uncertainties and changing market conditions. This cautious approach underscores the complex interplay between investment opportunities and competing financial demands as individuals navigate their financial decisions.

Currency Expert Predicts Canadian Dollar Plummet to 50 Cents in Ten Years

Jean-François Tardif, founder of Timelo Investment Management, recently discussed the potential implications of the 2024 federal budget with Financial Post’s Larysa Harapyn. Their conversation focused on how the budget could impact the Canadian economy and the Canadian dollar, both in the short-term and over a longer timeframe.

Tardif highlighted significant short-term repercussions that the budget could have on various sectors of the Canadian economy, including changes in government spending, taxation policies, and economic stimulus measures. He also delved into the longer-term implications for the stability and valuation of the Canadian dollar, considering fiscal policies, economic growth forecasts, and global market trends. Overall, Tardif’s analysis provided a comprehensive view of the interconnected factors influencing the economy and the currency’s trajectory.

Federal Budget Deals a Heavy Blow to Canada’s Innovation Sector

The unveiling of the 2024 federal budget drew attention to a significant decision by Ottawa: raising the capital gains inclusion rate from 50% to 66%. This change has sparked concerns within Canada’s innovation sector, as it signifies a shift in tax policy that could impact investors, businesses, and the overall innovation ecosystem. The increase in the inclusion rate means a larger portion of capital gains will be taxed, potentially reducing incentives for investment in innovative ventures.

Many stakeholders in the innovation sector argue that this tax policy change could stifle investment, hinder entrepreneurial spirit, and weaken Canada’s competitive edge in innovation and technology development on a global scale. As discussions unfold about the implications of this decision, stakeholders are closely monitoring its impact, highlighting the delicate balance required between fiscal policy objectives and fostering an environment conducive to innovation.

Unifor Chief Urges Bank of Canada to Slash Interest Rates: What’s the Holdup?

Unifor president Lana Payne is calling on Bank of Canada governor Tiff Macklem to swiftly lower interest rates, citing the urgency of this action in the current economic climate. With a workforce representing over 315,000 individuals across multiple sectors, Payne’s message carries weight as she advocates for policies aimed at benefiting workers and the broader economy.

Payne’s stance against interest rate hikes echoes sentiments shared by many within the labor union and among workers. Higher interest rates could lead to increased borrowing costs, reduced consumer spending, and diminished business investment, posing concerns for economic activity. Lowering interest rates is viewed as a proactive step to stimulate economic growth, facilitate job creation, and alleviate financial pressures faced by individuals and businesses alike.

Plastic Treaty Talks Heat Up: What Stakeholders Demand

Global leaders gathered in Canada’s capital this week to tackle the escalating issue of plastic pollution on a global scale. The focus was on advancing a historic global treaty to combat the proliferation of plastic waste, highlighting the critical need to finalize the treaty by year-end. This urgency underscores the severity of the problem and the collective effort required to effectively address it.

The discussions reflect a coordinated international response to the environmental challenge posed by plastic pollution. The treaty aims to establish comprehensive regulations governing the production, use, and disposal of plastics, with the overarching goal of reducing pollution and preserving natural resources. The outcomes of these negotiations will significantly impact global environmental governance, emphasizing the importance of cooperation and shared responsibility in addressing this pressing issue.

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