Here are five things you need to know this morning
Carney to become PM: Mark Carney will be sworn in as Canada’s 24th prime minister today, taking over for Justin Trudeau. The change creates an opening for the federal government to reset its tense relationship with the United States and Donald Trump. Carney will have immediate challenges dealing with U.S. trade tariffs and their impact on the Canadian economy. Canada’s business community will be watching to see whether Dominic Leblanc will be retained as Carney’s finance minister. In any case, the new cabinet may not be in place for long – Carney is expected to soon set the wheels in motion for a federal election.
No Washington breakthrough: There doesn’t seem to have been any concrete progress made in yesterday’s meeting in Washington between Canadian officials and U.S. Commerce Secretary Howard Lutnick. Innovation Minister François-Philippe Champagne called the meeting “constructive,” but U.S. President Donald Trump said he wouldn’t change his tariff plans, and repeated claims that the U.S. is being “ripped off” on trade with Canada.
Stock market correction: Two key measures of the U.S. stock market are now in correction territory, having fallen 10 per cent from their peaks, as investors worry about the effects of tariffs on the U.S. economy. Yesterday, the S&P 500 Index fell by 1.4 per cent, putting it 10 per cent below its record high in February. The Nasdaq Composite Index fell by almost two per cent yesterday and is now down 14 per cent from the high it reached in mid-December. Meanwhile Canada’s S&P/TSX Composite Index has fared relatively better, falling six per cent from the high it achieved in late January.
Gold breaks through $3,000: The price of gold has hit another all-time high, trading at more than US$3,000 per ounce for the first time ever. Gold has a reputation as a so-called safe haven, meaning investors move to it when other assets – like stocks – are under pressure. Gold has also been driven higher by a central bank buying spree and economic fragility worldwide.
Tariffs threaten NFI: One stock to watch today is NFI Group. The Winnipeg-based bus-maker swung to a profit in its latest quarter, as revenue rose to US$837 million. On the tariff front, NFI says that while it has taken actions to prepare for the potential adverse effects of new trade policies on its business, it is warning that tariffs may lead to a reduction in demand from private-sector customers, as new U.S. government policies may cut funding for transit vehicles, and NFI may not be able to pass increased costs on to customers.