HEADLINES
Trump Expected to Remove Some Tariffs on Canada in Bid to Help Susan Collins
The U.S. is expected to remove 50% tariffs on some Canadian products in a bid to help Sen. Susan Collins of Maine and other Republicans in the upcoming midterm elections, according to people familiar with the upcoming action.
The proclamation altering the tariffs, which could come as early as Friday, will likely remove 50% tariffs on products used in agriculture, according to the people, who emphasized that the scope and timing of the action could change. The tariff reductions could be balanced out by raising levies on other Canadian goods.
After The Wall Street Journal reported the expected action, Collins issued a statement praising the Trump administration's move and further detailing nine categories of tariff exemptions. They include certain agricultural machinery, refrigeration equipment, packaging products and other goods used in food production.
"I have asked for tariff relief for these important products and stressed the burdens additional costs impose on Maine businesses and families," Collins said. "I will continue working directly with Administration officials to seek additional relief from tariffs and encourage a broader trade agreement with Canada, our neighbor, ally, and largest trading partner."
Retail Sales Look to Build on August's Rebound
Retail spending by Canadians looks to have remained on the rise last month, though the pace is showing signs of cooling as uncertainty and gasoline prices remain high.
The value of retail trade in the country increased 1.2% in August from the previous month to a seasonally adjusted C$74.57 billion, Statistics Canada said Friday. That was broadly in line with expectations and more than enough to recover from a 0.8% drop a month prior, the first fall in sales of the year.
Momentum looks to have carried into September, with the statistics agency's early estimate indicating sales for the month rose 0.7%. Statistics Canada offered no detail with the early tally of receipts, but with goods prices and the cost of fuel up again last month economists say retail volumes may have been flat.
Consumers Show Resilience But Not Stronger Demand
Handoff for 4Q Not Seen as Positive for Spending
Bombardier to Invest $270 Million in U.S. Expansion as Trump Softens Stance
Bombardier plans to invest $270 million to expand its American infrastructure footprint and hire 800 U.S. workers, days after President Trump appeared to soften his rhetoric against the Montreal-based business-jet maker.
The expansion includes a significant step-up in operations in Texas, opening a new service center in Indiana, building a learning hub in Kansas, as well as launching additional infrastructure projects in Connecticut.
In a Truth Social post at 11:41 P.M. Thursday, hours before Bombardier's official announcement, Trump praised Bombardier's plans, stating "Bombardier is investing 270 MILLION DOLLARS, creating THOUSANDS of American Jobs in Kansas, Texas, and Indiana."
Bombardier's expansion will directly add 800 U.S. jobs, 300 by way of new projects and 500 through active recruitment, it said on Friday.
Rogers Communications Profit Drops on Comparison, Revenue Rises
Rogers Communications reported a decline in third-quarter profit due to a large prior-year accounting gain tied to its sports assets acquisition, while adjusted profit topped expectations on higher revenue.
The Canadian telecom company on Friday posted net income of C$495 million, or C$0.88 a share, down from C$5.77 billion, or C$10.54 a share, in the comparable quarter a year ago.
In the same period last year, Rogers booked a one-time, noncash paper gain of C$5 billion when it revalued its existing stake in Maple Leaf Sports & Entertainment, the parent company of the Toronto Maple Leafs and Toronto Raptors, as part of its acquisition of Bell's ownership stake.
Factory Sales Edge Up Estimated 0.1% in September
Factory activity in Canada ticked up last month, with an early estimate pointing a slight lift in sales.
Manufacturing shipments rose an estimated 0.1% in September from a month prior, Statistics Canada said Friday.
The rise points to some resilience for the industry despite heightened trade tensions between Canada and the U.S., though it may also continue to reflect higher prices for manufactured goods.
The largest increases in September were in petroleum and coal, and in aerospace products and parts, the data agency said.
TALKING POINT
Business Groups Urge Ottawa to Undertake Comprehensive Tax Review
By Joy SpearChief-Morris of The Globe and Mail
A coalition of business groups, including the Canadian Chamber of Commerce, are calling on Ottawa to commit to a comprehensive review of the tax system when the federal budget is released in two weeks.
The letter, penned to Minister of Finance, François-Philippe Champagne, on Friday, calls for a full-scale review of Canada's tax system, with the aim of simplifying taxes to support small businesses, creating incentives for entrepreneurs and increasing Canada's global competitiveness for corporate investment.
"Tax is a critical part of enabling the country to put itself on the right economic footing, and we just can't wait another decade to modernize our tax system," said Carol Wilding, president and chief executive of the Chartered Professional Accountants of Ontario.
Led by CPA Ontario, the national coalition consists of eight organizations representing 700,000 professionals and businesses, including the Canadian Federation of Independent Business, Ontario Chamber of Commerce and others.
Wilding said the trade conflict with the United States has increased the urgency for Canada to address its business competitiveness and productivity.
A July study by KPMG Canada found four in 10 manufacturers have moved, or have considered moving, production to the U.S.
David Pierce, vice-president of government relations for the Canadian Chamber of Commerce, said that while Canada doesn't attract businesses just on tax policy, "in the end, the CFO has to sign off, and so the numbers and cents have to have to line up."
"That's really, I think, the case that our group is making on this," he said.
Canada has not undertaken a comprehensive review of its tax code in decades. In the interim, critics of the tax system say it's become overly complex and difficult for businesses and households to navigate, incentivizing some industries and individuals but punishing others.
Ahead of the Nov. 5 budget, several organizations and executives have called for a review or overhaul of the tax system. On Wednesday, National Bank CEO Laurent Ferreira said the federal system needed to be "scrapped" and rewritten.
Daniel Tisch, president and CEO of the Ontario Chamber of Commerce, said the urgency of the economic climate has created momentum for many organizations, such as the coalition, to come together on these calls.
"The biggest thing we can do right now to grow Canada's economy and its resilience is incentivize businesses to invest in themselves," Tisch said.
"Everything, I think, in this call to action is aligned towards that objective."
CPA Ontario and the Canadian and Ontario chambers of commerce said they have been in discussions over tax reform with different levels of government for several months.
They said they are confident that next month's budget will include some sort of signalling for tax reform.
"I am hopeful that the government is going to really drill into red tape in tax compliance. I'll be disappointed if they really don't take a big swing there," Pierce said.
He added that with previous governments, talking about businesses being subject to higher taxes in Canada "was just a non-starter, and the economic activity of our economy suffered as a result."
In September, Prime Minister Mark Carney introduced a new "productivity mega deduction" that allows companies to immediately write off 100% of the costs of a broad range of capital investments in the first year, marking an expansion from a temporary - and more narrow - policy.
"The productivity mega deduction is something that we welcomed, " Wilding said, adding that CPA Ontario advocated for such a reform a year ago.
While Pierce said the mega deduction puts Canada "back on the map" for global investment, "it's impossible for the business community to just sit back and say we don't still have work to do because there is."
Expected Major Events for Monday
05:00/JPN: Aug Indexes of Business Conditions - Revision
09:00/GER: Oct ifo Business Climate Index
11:00/UK: Oct CBI Distributive Trades Survey
12:30/US: Sep Chicago Fed National Activity Index (CFNAI)
14:30/US: Oct Texas Manufacturing Outlook Survey
17:59/UK: Adzuna UK Job Market Report
23:50/JPN: Sep Services Producer Price Index
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Monday ASA Gold & Precious Metals Ltd $(ASA)$ is expected to report for 3Q.
Acumen Pharmaceuticals Inc $(ABOS)$ is expected to report $-0.40 for 3Q.
Agilysys Inc $(AGYS)$ is expected to report $0.35 for 2Q.
Alexandria Real Estate Equities Inc (ARE) is expected to report $-0.04 for 3Q.
Alliance Resource Partners LP (ARLP) is expected to report $0.90 for 3Q.
Amkor Technology Inc (AMKR) is expected to report $0.79 for 3Q.
Bank of Hawaii Corp $(BOH)$ is expected to report $1.51 for 3Q.
Bank of Marin Bancorp $(BMRC)$ is expected to report $0.57 for 3Q.
Brixmor Property Group Inc (BRX) is expected to report $0.20 for 3Q.
Brown & Brown Inc (BRO) is expected to report $0.79 for 3Q.
Business First Bancshares Inc (BFST) is expected to report for 3Q.
Cadence Design Systems Inc (CDNS) is expected to report $1.13 for 3Q.
Carter's Inc $(CRI)$ is expected to report $0.91 for 3Q.
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