Posthaste: Liberal vs Conservative tax cuts, Thomas Cook collapses and the bullish case for Canadian stocks
Thousands of holiday makers were left stranded after travel firm Thomas Cook’s board said it entered liquidation after failing to strike a deal with creditors and bondholders.
The UK government said it would get the British travellers home but revealed that it had rejected a request from Thomas Cook for a bailout of about US$187.1 million because doing so would have set up a “moral hazard.”
Elsewhere, the Liberal party looked to reset its campaign that had been rocked by Justin Trudeau’s blackface controversy. Over the weekend, Trudeau promised a big-ticket tax cut worth billions and a 25 per cent reduction in cellphone bills, countering the Conservative Party’s own tax cut pledges.
“LPC is notably larger % change among lower-income families, and both decline at the top but LPC declines faster,” economist Trevor Tombe tweeted.
Economist Kevin Milligan noted that the “proposal to expand the Basic Personal Amount will remove about 690,000 Canadians from paying federal income taxes by 2023, and lift 38,000 Canadians above the poverty line.”
Milligan’s comparison of the Liberals’ and Conservatives’ plans show households making under $100,000 will on average benefit more under the Liberal plan, while those making above $100,000 will be better off under the Conservatives’ plan.
Here’s what’s you need to know this morning:
Statistics Canada to release wholesale trade figures for July at 8:30 a.m. ET
Greg Rickford, Minister of Energy, Northern Development and Mines, will make an announcement in Timmins, Ont.
The Elevate tech conference in Toronto hosts a variety of speakers including Michelle Obama, Chris Hadfield, and Martha Stewart
Disclosure application hearing for Huawei executive Meng Wanzhou’s case in Vancouver at 10 a.m. PST
An announcement about Yukon-based support for a new tech-sector investment initiative by the Yukon government and First Nations consortium
Corporate Event: DHX Media Q4 and fiscal 2019 conference call
Business capital investment in Canada has been stalling and failing to keep up with counterparts U.S. and OECD countries, according to a CD Howe Institute study.
Measuring investment per worker is illuminating as it underlines the degree to which the average employed Canadian has benefited from new capital. The per-worker numbers also allow for comparability over a period during which the economy and employment have grown, CD Howe said.
Author William Robson notes that while Canada was matching U.S. capital investments at the start of the century, the gap between the two countries has widened dramatically since the middle of the current decade. “While Canadian per-worker investment is still below its 2014 peak, US per-worker investment is reaching new highs,” writes author William Robson.
Because investment in new machinery and equipment is particularly important for spurring economy-wide productivity, Canada’s weak performance there is particularly troubling, the author noted, adding that Canada is also lagging its OECD peers.
“Weak capital spending is a threat to Canada’s future prosperity – one all levels of Canadian government should address. Moving ahead with vital infrastructure, addressing growth-inhibiting taxes, and liberalizing internal and international trade can all help Canadian businesses equip their workers better to compete and thrive,” Robson wrote.