Canada Government Budget Deficit Shrinks in October 📈
Canada's government budget deficit narrowed in October 2024 and the first seven months of the 2024/25 fiscal year, driven by increased government revenues from higher corporate and personal income tax, despite rising program expenses and public debt charges.
The narrowing of Canada's government budget deficit is a positive development for the investment portfolio, as it suggests improved fiscal stability and potentially lower borrowing costs. The increase in government revenues, particularly from corporate and personal income taxes, could indicate a strengthening economy, which could have a moderate positive impact on the portfolio's performance, especially on the long positions in the S&P 500, European market, and individual stocks like Apple, Microsoft, and BNP Paribas.
UK Public Sector Borrowing Narrows More than Expected 📈
UK public sector net borrowing, excluding banks, decreased to £11.25 billion in November 2024, the lowest November figure since 2021, driven by higher tax receipts and lower debt interest payments.
The decrease in UK public sector net borrowing, excluding banks, suggests an improvement in the government's fiscal position, which could have a moderately positive impact on the investment portfolio. The lower borrowing levels and higher tax receipts indicate a strengthening economy, which could benefit the portfolio's exposure to the UK and European markets, as well as companies like BNP Paribas and Societe Generale. However, the overall impact is limited as the portfolio's exposure to the UK and European markets is not the dominant position.