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The Honourable Chrystia Freeland, P.C., M.P.'s resignation letter from the Canadian cabinet says, "That means keeping our fiscal powder dry today, so we have the reserves we may need..." While she points her remarks directly to the imminent tariff war, and opinions may differ as to how the tariff war will actually turn out, her advice of keeping powder dry is worth heeding. Trump's tariff war is very much a consequence of climate economics. His team's transition policy makes clear that he takes batteries and electrification seriously. It is just that the technology needs to fulfil the military first. This echoes China's earlier retaliatory and yet also preemptive banning of germanium, gallium, and antimony export. That too was to gain a military advantage. It was to prevent these essentials from advancing the US military. China has for some years now taken over on a purchasing power parity basis as the world's largest economy. The Chinese dollar can buy more at home than the American dollar. This has given China the advantage in producing solar and electrification technology cheaper than the US. This is what the tariffs are about. It is about who gets to control the technology the world thinks it needs to face climate change. This includes technology for the physical and digital battlefields to attack and bomb each other. That's why it is a security issue. Both China and the US are turning climate change into a climate war. It is definitely an economic war. It may be a cold war, but increasingly the risks of actual conflicts are increasing. This is where keeping powder dry makes sense. It doesn't matter whose side you may be on. In this climate war, it is good advice to keep powder dry. #China #US #Canada #conflict #climatechange #economics #

Ahead of the much anticipated Budget later this week by the Labour Government, Joseph Dinnage looks at the potential changes being touted, and the choice to be made between growth and prosperity, and economic decline in this CapX article #growth #prosperity #ukbusiness #Budget2024 https://lnkd.in/e9RcazfG

Our global analysts have been monitoring the growing political uncertainty in Canada, as Prime Minister Justin Trudeau’s position has become increasingly precarious. The opposition New Democratic Party (NDP), which has supported Trudeau’s government for years, announced it will vote no confidence when Parliament reconvenes on January 27th. This move signals the collapse of the coalition that has allowed Trudeau's government to remain in power and adds pressure to his leadership at a critical moment.   Trudeau's political challenges come on the heels of his finance minister, Chrystia Freeland, resigning amid criticism of his handling of economic issues, particularly in the face of threats from U.S. President Donald Trump. Trump’s ongoing threats to impose 25% tariffs on Canadian products have exacerbated the situation, with Trudeau facing increasing discontent over his leadership.   Shortly before Freeland announced her decision, the housing minister also quit. In response, Trudeau has reshuffled his Cabinet and stated that Canada is preparing for potential economic challenges, but his future remains uncertain as he has not addressed whether he will step aside.   The political upheaval also occurs against a backdrop of rising inflation, the inflated cost of living, and growing dissatisfaction with Trudeau’s leadership. Opposition leaders, including Conservative Party leader Pierre Poilievre, are calling for an immediate election, arguing that the country needs a prime minister who can effectively face Trump’s threats and navigate the economic challenges ahead.   Parliament is now shut for the holidays until late next month, but the leftist New Democratic Party said that on December 27th it would trigger a vote of no confidence in Trudeau after lawmakers reconvene on January 27th. As Parliament prepares to return next month, Trudeau’s government faces significant political risks; if the NDP's no-confidence vote succeeds, it could trigger an election that may lead to a shift in power, potentially favoring the opposition Conservative Party. “No matter who is leading the Liberal Party, this government’s time is up. We will put forward a clear motion of non-confidence in the next sitting of the House of Commons,” NDP leader Jagmeet Singh said.   Our experts will continue to monitor the developments in Canadian politics, focusing on how these challenges unfold and the potential impact on the country's leadership and future political direction. Liz C.

Following a chaotic day at Parliament Hill which included the resignation of the Finance Minister Chrystia Freeland, the 2024 Fall Economic Statement was finally tabled. Our Advanced Wealth Planning Group breaks down the highlights for you in the attached report. #wealthmanagement #hendersonandassociates

𝐓𝐫𝐮𝐝𝐞𝐚𝐮'𝐬 𝐂𝐚𝐛𝐢𝐧𝐞𝐭 𝐑𝐨𝐭: 𝐂𝐡𝐫𝐲𝐬𝐭𝐢𝐚 𝐅𝐫𝐞𝐞𝐥𝐚𝐧𝐝 𝐋𝐞𝐚𝐩𝐬 𝐅𝐫𝐨𝐦 𝐭𝐡𝐞 𝐒𝐢𝐧𝐤𝐢𝐧𝐠 𝐒𝐡𝐢𝐩 In what may go down as Canadian politics' version of Survivor: Ottawa Edition, Chrystia Freeland has dramatically voted herself off Trudeau Island. The finance minister and deputy PM, once Justin Trudeau’s “load-bearing” ally, accused him of engaging in “costly political gimmicks”—which, translated into non-Canadian politeness, means she’s tired of patching the economic ship he keeps steering into icebergs. Her sudden resignation left Trudeau scrambling for a replacement, but instead of wooing seasoned economist Mark Carney, he handed the reins to Dominic LeBlanc, a childhood friend best known for his uncanny ability to be Trudeau’s political human shield. After all, who needs economic expertise when you’ve got loyalty and a willingness to smile through awkward Mar-a-Lago meetings with Donald Trump? The timing couldn’t be worse for Trudeau. With a ballooning deficit, internal dissent among Liberal MPs, and a polling approval rating that makes the Ottawa winter look balmy, he’s running out of friends, ideas, and time. And now, with Trump back in the picture and already waving tariff threats like a red MAGA flag, Trudeau’s next move will probably involve the words, “Please don’t hurt us.” Meanwhile, whispers of rebellion grow louder in the Liberal Party, with MPs wondering aloud if Trudeau has the political mileage to make it to the next election—or if it’s time to trade him in for a newer, more fuel-efficient model. Canadians, who are now questioning whether they accidentally elected the country’s longest-running political soap opera, might just agree. 𝐓𝐡𝐢𝐬 𝐚𝐫𝐭𝐢𝐜𝐥𝐞 𝐰𝐚𝐬 𝐰𝐫𝐢𝐭𝐭𝐞𝐧 𝐛𝐲 𝐂𝐡𝐚𝐭𝐆𝐏𝐓—𝐩𝐫𝐨𝐨𝐟 𝐭𝐡𝐚𝐭 𝐞𝐯𝐞𝐧 𝐀𝐈 𝐜𝐚𝐧 𝐬𝐞𝐧𝐬𝐞 𝐰𝐡𝐞𝐧 𝐭𝐡𝐞 𝐩𝐥𝐨𝐭 𝐡𝐚𝐬 𝐭𝐡𝐢𝐜𝐤𝐞𝐧𝐞𝐝 𝐭𝐨 𝐭𝐡𝐞 𝐜𝐨𝐧𝐬𝐢𝐬𝐭𝐞𝐧𝐜𝐲 𝐨𝐟 𝐦𝐚𝐩𝐥𝐞 𝐬𝐲𝐫𝐮𝐩. https://lnkd.in/gUHxhpKE

What do you think PM Wong's priorities are? "5 priorities on Lawrence Wong’s agenda as next prime minister". Leadership renewal and the GE will certainly be on his to do list, as having a clear mandate will be key if he wishes to carry out his agenda. If the Opposition can exploit we voters' concerns about the rising cost of living, the increase in retrenchment and it becoming harder to get a new role and to show how the PAP are out of touch they can gain 45-50% of the vote, the most ever in Singapore. It's possible especially when you consider that there are many new voters who can't be threatened with a loss of money for their estate like in the old days or brainwashed through the government owned media as most people now get their news from social media which the government can't control. Also the more the PAP throws at the WP's Leader Pritam Singh the more that the voters will have sympathy with him and that can translate to protest votes about the way that he has been treated. So Wong is going to have to engage with these voters as well as older voters disenchanted with the rising costs of living in our sunny island. So 4 and 5 listed here - housing, livelihood, the economy, policies, cost of living should be his main focus as they will blow the other three priorities away if they are not dealt with. What do you think, what should our new PM's priorities be?

Although last week’s landslide election victory for Keir Starmer’s Labour Party might have marked a seismic political shift, the initial reaction from markets was somewhat muted. This was perhaps due to strong polling in the months leading up to the election, allowing investors to effectively ‘price in’ the anticipated election results. Nevertheless, the scale of the victory has dealt Starmer a strong political hand. Labour ended with 411 out of a possible 650 seats. This commanding majority should, in theory, allow them to implement their manifesto promises. After a relatively rapid series of Prime Ministers since 2016, greater political stability will also be welcome. That said, the new government is likely to face some significant economic challenges. Although the economy is no longer in recession and inflation is back at 2%, the new Government has inherited an economy currently recording low growth, high levels of public debt, and with inflationary challenges remaining. It’s likely we’ll get a feel for the Government’s plans in the coming weeks and months; however, the Autumn Budget will be one of the first real tests for equity markets to assess Labour’s fiscal plans. #election #financialadvice #wealthcheck

A seismic shift just rocked Canada's political landscape as Chrystia Freeland resigns from her positions as Finance Minister and Deputy Prime Minister, citing "fundamental disagreements" with Prime Minister Justin Trudeau. As she steps away just before a critical fall economic update, concerns mount over Canada's fiscal path amidst rising U.S. tariff threats under President-elect Trump. Freeland’s departure raises urgent questions: What does this mean for Canada's economic strategy? Can Trudeau’s government stabilize amid declining public support and internal discord? This moment could be pivotal—not just for Trudeau, but for the future of Canada's economic policy. Will a new leader embrace fiscal prudence to guide Canada through this turmoil, or will a populist approach amplify existing challenges? As we watch the fall economic update unfold, one thing is clear: Canada’s political and economic future is at a crossroads. Let’s hope for informed, responsible leadership at this critical juncture!

Although last week’s landslide election victory for Keir Starmer’s Labour Party might have marked a seismic political shift, the initial reaction from markets was somewhat muted. This was perhaps due to strong polling in the months leading up to the election, allowing investors to effectively ‘price in’ the anticipated election results. Nevertheless, the scale of the victory has dealt Starmer a strong political hand. Labour ended with 411 out of a possible 650 seats. This commanding majority should, in theory, allow them to implement their manifesto promises. After a relatively rapid series of Prime Ministers since 2016, greater political stability will also be welcome. That said, the new government is likely to face some significant economic challenges. Although the economy is no longer in recession and inflation is back at 2%, the new Government has inherited an economy currently recording low growth, high levels of public debt, and with inflationary challenges remaining. It’s likely we’ll get a feel for the Government’s plans in the coming weeks and months; however, the Autumn Budget will be one of the first real tests for equity markets to assess Labour’s fiscal plans. #allchangeatno10 #economy #interestrates #inflation #financialplanning

Finance Minister Chrystia Freeland’s resignation from Prime Minister Justin Trudeau's cabinet just hours before she was set to deliver the government's fall economic statement marks a significant moment in Canadian politics. In this article, Benjamin Jang, CAIA, CIM, DMS explores the potential disagreements between Freeland and Trudeau over how best to stimulate the Canadian economy and navigate complex trade relationships, particularly with the United States in light of President-elect Donald Trump’s tariff policies.    Learn more: https://lnkd.in/gxVadhMX