The Throne Speech: Our insights

Sep 25, 2020 | Elinesky Schuett Private Wealth Management


This week, our featured commentary includes a coronavirus update and our insights into the recent throne speech from the Governor General.

Ottawa parliament building

This week, our featured commentary includes a coronavirus update and our insights into the recent throne speech from the Governor General. Continuing with the focus on the throne speech, we’ve also included the 10-Minute Take podcast that was recorded on September 23, 2020, in advance of the speech. In this podcast, Craig Wright, RBC’s Chief Economist, shares his view on the economic outlook and what’s needed from the throne speech.

Also included this week is your link to the video replay from our most recent online event in the Elinesky Schuett Speaker Series. We’ve also included an interesting article on US real estate investing and things that you may want to consider. As always, we end our blogs with our weekly Community Corner.


Weakness in global markets has continued to persist. A laundry list of items were to blame this week, including a number of U.S. monetary policymakers who pleaded for Congress to pass more fiscal stimulus, concerns over the potential of a contested U.S. election, a noticeable slowing in European services activity, COVID-19 case trends and the potential for more government restrictions. Market volatility did move modestly higher recently, though remains below the levels of early September when weakness first emerged. This suggests market action remains orderly.

All the issues listed above are worthy of further discussion, but we focus our commentary this week on a virus update as it remains the predominant driver of the global economic and market trajectory in our view. We also address the implications of the throne speech from the Canadian government.

Coronavirus update

The rate of new infections in Canada has continued to accelerate over the past week, with the country seeing its seven-day moving average surpass 1100 versus 800 the previous week. From a provincial perspective, Quebec and Ontario remain the hot spots, with the fastest growth rates. The average of daily new infections in both provinces is approximately 460 and 386, respectively. British Columbia and Alberta also saw an increase, but the rate of change is well below the other two. Meanwhile, Saskatchewan and Manitoba were relatively stable in terms of change in trend. The east coast and northern territories have generally seen no pickup whatsoever compared to the rest of the country.

Elsewhere, developments have been mixed. Europe continues to grapple with its second wave, and Argentina and Israel are reporting near record levels. The United States has seen a stalling in its declining trend, though it appears to have flat lined as opposed to move higher.

Some signs of progress have emerged in developing countries such as Brazil and India. The former has seen its new cases steadily decline since August, with well below 20,000 new cases per day now being reported. India, whose case numbers seemed out of control just a few weeks ago (at more than 90,000 cases per day), has seen its moving average noticeably decline over the past week. The figures remain elevated but the trends provide some glimmers of hope for these hard hit nations.

The implications of our government’s plan

The minority Liberal government delivered its much anticipated throne speech this past week. Given the emergence of a second wave of the coronavirus in Canada, it was not necessarily surprising to see a heavy focus on the various programs put in place to continue to support the unemployed and businesses that are being impacted by the pandemic in order to buy more time for the economic recovery. Interestingly, there was a change to one particular program (explained below), which may be enough to secure the support from the NDP party. If the Liberals want to survive a parliamentary confidence vote in the days to come, they will need the NDP given that the Conservatives and Bloc Québécois have suggested they are not likely to be supportive.

The support programs include:

  • Canada Emergency Wage Subsidy – extended from December through until next summer, essentially pays a sizeable portion of an employee’s salary for eligible businesses.
  • Canada Recovery Benefit – available for 26 weeks to workers who are self-employed, gig, or contract workers. Was initially promised to be $400 per week but was raised to $500 in an attempt to secure support from the NDP party.
  • Canada Recovery Sickness Benefit – applicable for those that do not have paid sick leave, will provide $500 per week for up to 2 weeks.
  • Canada Recovery Caregiving Benefit – applicable to those that have to stay home to care for someone because alternatives are not available due to the pandemic, will provide $500 per week for up to 26 weeks.

In addition to the above, some changes were made a month ago to the Employment Insurance (EI) program that should allow more people to quality. This is important as many participants of the Canada Emergency Response Benefit, which is on the verge of expiring, are likely to transition to EI.

There will be concerns about the cost of these programs as the fiscal deficit was already expected to be the largest this year since the Second World War. Moreover, the government will be funding this spending with increasing amounts of debt, but these measures are undoubtedly required to help the many households and businesses endure through this period of economic stress. Austerity and fiscal restraint will come at some point in the future. Canada won’t be alone in confronting that longer-term challenge as most other countries have had to undertake similar spending to deal with the impact the pandemic has had on their own economies.

We are likely to turn our attention from Canada to the U.S. and its presidential and congressional elections. The first of three presidential debates takes place on September 29th, and the noise could last longer than it otherwise would as there is some risk of a contested outcome. We will discuss this more over the following weeks.


Elinesky Schuett Speaker Series
Where do we go from here? In conversation with Jim Allworth

We were very excited to have Jim Allworth, Portfolio Strategist with RBC Dominion Securities, join us for an interactive online session earlier this month. We recorded the event and it is available online now for you to view.

One of the central takeaways from this event is the importance of long-term perspective: We must remember that crises do happen, but that they do not hinder long-term economic growth.

Please contact us at if you have any questions.


10-Minute Take

The 10-Minute Take is a podcast series dedicated to providing insights from RBC Economists and market experts on events unfolding around the globe.

How the Throne Speech can help Canada’s recovery

This podcast was recorded on September 23, 2020
In today’s Speech from the Throne, the Governor General is expected to lay out the government’s vision for the pandemic recovery. It won’t be easy, with COVID-19 cases on the rise and investor confidence wobbling. While the economy has improved since April lows, the recovery continues to be fragile – especially in the face of a possible second wave. Where should the government focus its investments? And if it survives the confidence vote, what could we expect in its next budget? Craig Wright, RBC’s Chief Economist, shares his view on the economic outlook and what’s needed from the throne speech.

Background Reading:

Listen to the latest 10-Minute Take podcasts online now: The 10-Minute Take.

U.S. Real Estate for Fun and Profit

Wondering if now is a good time to think about a U.S. investment or vacation property? This article will provide context regarding interest rates, currency exchange rates, taxes and insurance, which can all play a role in your decision. Read more

Community Corner

In this week’s community corner, we are featuring the Community of Hearts Comedy Night that is taking place on Saturday, October 24. This fun-filled evening will be supporting their programming for youth and adults with developmental disabilities in our community.

We are excited to be a part of this great night in for a great cause. Click here for event information and tickets.

Each week, we like to end our posts with a few good news stories from in and around the community. We hope that they brighten your day!

As always, we are available to connect with you personally. Please don’t hesitate to contact us at 519-822-2024 or