Global Markets: S&P lowers B.C.’s credit rating

Province's deficit, debt increasing

Compiled by Glen Hallick, MarketsFarm

WINNIPEG, July 8 (MarketsFarm) – The following is a glance at the news moving markets in Canada and globally.

– As British Columbia is faced with a soaring debt, on Thursday S&P Global Ratings reduced the Canadian province’s credit rating from AAA to AA+. In April, the provincial government’s budget said the deficit for fiscal year 2021/22 would be C$9.7 billion and the debt would increase to C$102 billion. As with other jurisdictions across Canada, B.C. has been dealing with ballooning expenditures due to the COVID-19 pandemic. Nearly two weeks ago Fitch Ratings cut the province’s credit rating.

– With the Summer Olympics scheduled to start on July 23, Japanese Prime Minister Yoshihide Suga announced on Thursday his government will declare a state of emergency due to the increase of COVID-19 cases in Japan, particularly the Tokyo area. Suga said the measures will be in effect beginning July 19 and ending Aug. 22. Several months ago, spectators from foreign countries were prohibited from attending the games and now there won’t be any spectators at all. Only an estimated 15 per cent of Japan’s population has been vaccinated – significantly lower than numerous other countries. The games, postponed from last year, will see an influx of tens of thousands of athletes, coaches, judges, and media.

– Former United States President Donald Trump announced he is suing a trio of social media giants for blocking his accounts. Lawyers for Trump filed the suit on Wednesday in a Florida court naming Facebook’s Mark Zuckerberg, Twitter’s Jack Dorsey and Google’s Sundar Pichai. Trump is seeking to reactivate his accounts stating, “If they can do it to me, they can do it to anyone.” In January, Twitter and Google-owned YouTube banned the former president for allegedly inciting the Capitol Hill violence and in June, Facebook banned Trump for two years.

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