A long trade war could mean more financial stress: Bank of Canada + MORE May 8th

The financial picture for Canadian households and businesses was showing signs of increased health until the United States started a trade war, the Bank of Canada said Thursday (May 8).

The central bank says in its latest Financial Stability Report that at the start of the year, households had, on average, less debt relative to their income than a year earlier, while insolvency filings by businesses had dropped significantly.

“The country’s financial system has faced unprecedented shocks in recent years, and it has proven resilient,” said governor Tiff Macklem in prepared remarks on the report. “But proactive steps taken by households and businesses, together with substantially lower interest rates, put the system on a more resilient footing heading into 2025.”

However, the U.S.-instigated trade war has pushed risks higher overall, said Macklem.

“The Canadian economy and financial system face a new threat. U.S. trade policy has taken a dramatic protectionist shift…

BCE Inc. cut its quarterly dividend payment to shareholders and announced a partnership deal with the Public Sector Pension Investment Board to help accelerate the development of fibre infrastructure in the U.S. BCE chief executive Mirko Bibic said Thursday the dividend cut comes as the company faces intense price competition against a backdrop of macroeconomic and geopolitical instability.

The company said it will now pay a quarterly dividend of 43.75 cents per share, down from 99.75 cents per share. The decision cuts BCE’s annualized dividend to $1.75 per common share from $3.99.

BCE Inc. Q1 2025 earnings

Operating revenue: $5.93 billion

Quarterly dividend: 43.75 cents per share

“As we debated this, deliberated at the board, certainly having taken and having listened to the perspectives of investors over the last few months, we decided that resetting the dividend … was the most responsible way to address our capital allocation strategy,” Bibic said in an interview…

Here’s a round-up of news for Canadian investors this week.

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