Here are some of the latest financial news in our country for this week.
Current Account Balance Worsens:
Statistics Canada has recently released data showing the country’s current account balance for the second quarter of 2010 and it does not paint a very pretty picture despite reports of the country’s apparent brief participation in the economic recession.
The balance on trade in goods fell $2.5 billion in the second quarter to return to a deficit, following two quarters of surpluses.
Statistics Canada reported that the current account deficit grew by $2.6 billion to a total of $11 billion because of slower export growth and increased imports. This was the seventh consecutive quarter of deficit in the current account in reference to the goods, services, investment income and current transfers transactions.
Source: www.advisor.ca
Canadian corporate profits down from last year:
According to new research by RBC Capital Markets, Canada corporations have earned significantly lower profits over the past year. With more than 80% of S&P/TSX constituents now finished reporting second quarter results, profits are set to decline 18.4% from the first quarter and 13.9% from the second quarter in 2009. And in even worse news, only 77 of 208 companies who have reported so far have posted positive earnings surprises.
By comparison, US second quarter earnings increased to almost 40% year-over-year with three-quarters of S&P 500 companies reporting positive earnings.
Some of the companies who have posted positive earnings include Labrador Iron Ore Rty Corp., Tim Hortons Inc., Canadian National Railway Co., Magna International Inc., and GMP Capital Inc.
Source: www.financialpost.com
Tax Comparisons by Province:
www.taxtips.ca has updated its Tax Comparisons by Province because of some tax changes in Nova Scotia and Newfoundland and Labrador. To view these comparisons, please visit: http://www.taxtips.ca/taxrates/taxcomparison/taxcomparison2010.htm
New GST/HST forms and publications:
The CRA has posted some new forms and publications related to GST and HST. Please visit the CRA website for these new documents: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/frmspbs/bytyp-eng.html