Daily Pulse
One of our most accessible tools, this daily comment keeps you abreast of developments on the North American and international financial markets.
Michel Doucet
Vice-President and
Portfolio Manager
November 4, 2025
Canada
Mark Carney was elected prime minister with a mandate to transform Canada's economy and needs to assure markets about the price tag. The former central banker, who won Canada’s top political office in March, has pledged to reduce dependency on the US by boosting military spending, speeding up infrastructure projects, increasing the pace of housing construction and improving business competitiveness. The Carney government's first budget will focus on structural change to strengthen the domestic economy and non-US exports, and will be paid for with an increase in debt. Economists expect Canada's budget deficit to surge, and higher borrowing costs could derail Carney's plan if investors demand higher compensation for buying Canada's debt.
United States
Wall Street CEOs including David Solomon and Ted Pick warned of an equity market drop of more than 10% in the next 12 to 24 months. Pick said a pullback would be “a healthy development” while Solomon noted that “technology multiples are full,” and investors should reconsider their allocations.
The warnings added to the bleak mood in stocks. US futures slide, with Palantir’s strong beat and raise failing to spur follow-through buying. Combined with a pullback in crypto and some hawkish Fed remarks, an unwind in pockets of the hyper-momentum trade is taking hold.
Europe
Chancellor Rachel Reeves laid the ground for more tax hikes, blaming the previous Conservative administration and global trade frictions for harming the UK economy. She said she wants to curb inflation to enable rate cuts while keeping debt and borrowing in check.
European stocks fell amid uncertainty about the Fed’s next moves and Palantir Technologies earnings revived concerns about lofty tech valuations. Mining shares were among the biggest laggards after copper dropped, while the telecom sector also underperformed. In individual stocks, Telefónica shares fell as much as 11% as the Spanish telecom operator is set to slash its 2026 dividend by half.
Asia
China called on the US to avoid sensitive issues so that a trade truce can hold. Ambassador Xie Feng named Taiwan, democracy and human rights, China’s political system, and development rights as Beijing’s four red lines.
Starbucks is selling a 60% stake in its China operations to Boyu Capital at a $4 billion enterprise value. Nintendo expects to sell 19 million Switch 2 units by March, up from original guidance of 15 million. SK Hynix stock’s 240% rally this year prompted the Korea Exchange to issue an “investment caution.”