Here are four things you need to know this morning
Trump’s Powell push weighing on markets: North American stock markets are under pressure this morning. As has so often been the case in recent weeks, the primary source of that pressure is the White House… but this time it does not have to do with tariffs. Rather, investors are showing concern that U.S. President Donald Trump will act on his threat of firing U.S. Federal Reserve Chairman Jerome Powell. National Economic Council Director Kevin Hassett said Friday that Trump was studying the matter, after the president criticized Powell on social media earlier in the week. The continued attacks on Powell have increased concerns about the Fed’s independence and the path of monetary policy in the world’s largest economy, hitting investor confidence already diminished by Trump’s sweeping changes to trade policy.
Carney unveils spending plan: Liberal Party leader Mark Carney has unveiled a plan to increase spending by more than $129 billion over the next four years if he wins the upcoming federal election. The largest spending promises include an income tax cut, defence spending, housing investments and a trade diversification fund. Carney’s plan would push the federal deficit to more than $62 billion this fiscal year. The Liberal platform does show a $222 million surplus in the operating budget at the end of the four-year term, as promised by Carney. The Liberal leader contends these measures will “grow our economy and offset the impacts of Trump’s tariffs,” according to the Liberal platform document.
Poilievre vows to scrap plastics ban: Meanwhile, Conservative Party leader Pierre Poilievre is pledging to scrap Canada’s ban on some plastic products if he becomes prime minister. Speaking in Montreal on the weekend, Poilievre said he’d end a prohibition on single-use plastics such as straws and grocery bags imposed under Justin Trudeau, saying the ban was raising costs for consumers. He also pledged to stop proposed new packaging requirements.
Record profit at Netflix: Shares of Netflix were trading higher in the premarket, after the streaming video giant reported record profit to start the year. First-quarter earnings rose by 25 per cent, easily beating analysts’ estimates. The results were boosted by a recent price increase and a strong slate of programming across the globe, including the hit British series “Adolescence.” Netflix is proving to be a safe haven in this time of economic and market turmoil. The company said it has seen no impact on its business from Trump’s tariffs or the market volatility that has followed. “We’re paying close attention to consumer sentiment and where the broader economy is moving,” co-Chief Executive Officer Greg Peters said on a call with analysts. “Based on what we’re seeing, there is nothing significant to note.”
