Shane Solly: Harbour Asset Management spokesperson on Canada rescinding digital services tax

Canada recently scrapped its digital services tax targeting US technology firms - just hours before it was due to take effect. 

Canadian Prime Minister Mark Carney and US President Donald Trump are set to re-open trade talks in order to agree on a deal by July 21, according to Canada's finance ministry.

Harbour Asset Management's Shane Solly explains further.

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Episode Transcript

Speaker 1 (00:09):
You're listening to a podcast from News talks'd be follow
this and our wide range of podcasts now on iHeartRadio.
Shane Soally harbor asset Management with me.

Speaker 2 (00:18):
Now, hey Shane, get out here there.

Speaker 1 (00:20):
Okay, So what's happened with the Canadian government and the
US government?

Speaker 2 (00:23):
Yeah, so on Friday out thennon mister Trump said, look
it's on social media. We're going to stop, going to
terminate trade discussions because the Canadians are going to put
in place a digital services tax on Monday. Well, funny
other thing this afternoon is on time, the Canadian government
rescinded the planned digital services tax on the basis they're
going to try and reopen trade talks. In fact, they've

(00:44):
actually come out said look we want to have a
trade deal with US by the twenty fifth of July.
And of course this clock's ticking here for the July
night tariff negotiations. So there's a bit of a deadline
out there. We expect perhaps some other countries do some
of my things, UK, France, Spain, They've all got these
types of things they want to get back onside with
the White House. So capital markets, we all think the

(01:05):
can is going to get kicked down the road, but
the dealers get extend. But you know there will be
some violatility around it nonetheless.

Speaker 1 (01:11):
Yeah, and so what happened with the US share market
that it hit those highs.

Speaker 2 (01:15):
Yeah, so we hit all time highs on Friday. You know,
it's a bit of a combination of these geopolitical rests
falling some more positive trade tarf deal rhetoric, particularly between
US and China and Europe is a bit of a
setup going on there. And also the US hit a
reserve rate cut, hope, So a bit of a combination there.
That opposite, we had some weaker US data out on Friday.

(01:37):
Growth indicators down and inflation indicator has been quite stubborn.
So there's been a few offsets, but net net positive outcome.

Speaker 1 (01:45):
How's our economy looking at the moment?

Speaker 2 (01:47):
Interesting day to day. We had the A Business Confidence
in the indicator out for June that was actually showed
a really strong bounce from very low levels. But against that,
we've had employment data which is this actual job growth
is pretty sluggish, which won't be a surprise for some
people out there. It's sort of drop into the A
Z business confidence number. It actually went to forty six
point three. That means they're one of me, is still

(02:09):
below an expansion level. But the really important thing here
is a big bounce and own activity. This is business
is saying we think we're going to get better. That
up to forty point nine from last month month thirty
four point eight. And the really important thing here the
government might be keen to see that there's been a
big lift in investment intentions up from nine points to
nine point nine. The exit the leading the way. Unfortunately,

(02:31):
as I say, these job growth numbers for May pretty sluggish,
only out point one of a percent month or month,
which means we're actually down one point five percent for
the year to two point three five million, So pretty
choppy out the head as we know. But the indicators
there's a bit of sunshine we are with potentially on
the custom of the economic expansion.

Speaker 1 (02:49):
Yeah, I'm so happy to hear it, Shane, Thank you
very much, appreciate it. Shane Solely Harbor Asset Management. For
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