Canada's NDP leader says end of agreement with Liberals makes election timing uncertain

VANCOUVER, British Columbia (AP) — The leader of Canada’s leftist New Democratic Party said Thursday that policies supported by liberal Prime Minister Justin Trudeau and Conservative Leader Pierre Poilievre hurt Canadians, although he didn’t say if he was willing to trigger a snap federal election soon.

Jagmeet Singh had said a day earlier in a video posted on social media that he had “ripped up” a key agreement with Trudeau’s Liberal government, that helped keep the minority government in power.

During a news conference in Toronto on Thursday, Singh acknowledged that his surprise decision to pull support from the supply and confidence agreement could move up the date of Canada's next general election, expected to be held in October 2025.

“I ripped up the supply and confidence agreement with Justin Trudeau, and we know that makes the election timing more uncertain,” Singh said.

Singh declined to provide a specific timeline about when he could vote against the Liberals in a no-confidence vote.

“I will look at any vote that comes before us and we will make a decision in the best interests of Canadians, as any minority government normally operates,” he said.

The Liberals currently have 154 seats in the 338 Canadian House of Commons. The Conservates hold 119 and the NDP 24. The Bloc Québécois, a party based only in Quebec and devoted to Quebec sovereignty, has 32 seats.

Singh and Trudeau reached the supply and confidence agreement in March 2022, committing the Liberals to implement several NDP priorities such as dental care and pharmacare in exchange for the NDP caucus supporting the Liberals on key votes.

Sanjay Jeram, a political science professor at Simon Fraser University in Burnaby, B.C., said the agreement always “had more bark than bite” and didn’t give the NDP any official representation in the federal government, like some coalitions in other countries.

Most polls show the Conservatives well ahead of the Liberals with the NDP sitting third, making it difficult to see what the New Democrats could gain from a quick election.

“Where the polls are now, there is no realistic option of them forming government,” said Jeram. “It’s hard to really understand what they’re aiming for," he said, adding, "Do they want to become the official opposition?”

Jeram said there may be concerns in the party that the Conservatives have been trying to appeal to working class voters, which could drain away support from the centre-left NDP. An early election may halt this erosion of support.

Libby Davies, who spent 18 years as an NDP member of Parliament, said ending the agreement puts pressure on the Liberals.

“Will it increase the likelihood of an election sooner? That’s part of the risk,” said Davies. “It’s the tension of a potential election that keeps the Liberals on their toes and allows the NDP to have a lot more leverage.”

With the Liberals trailing badly in the polls, and Trudeau very unpopular, she doubts they want an election.

“I don’t think they want an election right now,” she said. “It really puts the pressure on the Liberals to decide; are they going to listen to whatever demands come from the NDP?”

In a campaign style speech, Singh criticized both Trudeau and Poilievre.

“Justin Trudeau has let Canadians down,” said Singh. “Trudeau’s Liberals can’t deliver change. They are too weak and too selfish to stop Pierre Poilievre and the Conservatives."

As for the Conservatives, Singh accused them of wanting to reduce health care benefits and encourage corporate greed.

“Conservative cuts would take things from bad to worse,” he said.

He pitched the NDP as the party of hope.

“There’s a battle ahead of us, the fight for the Canda of our dreams,” said Singh. “The fight to restore hope and the promise that working hard gets you a good life.”

Davies, the former member of parliament, said if the NDP forces an early election they must explain their reasoning.

“Mr. Singh needs to present an NDP vision and what that looks like for the country," she said. “The longer he (was) tied to that agreement, the harder it is in some ways because all the good things that happened, the Liberals will take credit for.”

FILE - New Democratic Party leader Jagmeet Singh points to his turban as he speaks about racism during a speech in London, Ontario, June 8, 2021. (Nathan Denette/The Canadian Press via AP, File)

NEW YORK (AP) — U.S. stocks are hanging near their records Tuesday after several big banks delivered stronger profits for the summer than analysts expected, while the price of crude oil tumbled again.

The S&P 500 was up 0.1% in early trading, a day after setting an all-time high for the 46th time this year. The Dow Jones Industrial Average was down 256 points, or 0.6%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.3% higher.

Bank of America and Goldman Sachs both rose rose at least 1% after reporting stronger results for the latest quarter than analysts feared, while Charles Schwab jumped 8.4% after likewise delivering better profit than expected thanks in parts to more customers opening brokerage accounts.

Walgreens Boots Alliance was another winner, up 10.7%, after topping analysts’ forecasts. The drugstore chain also said it will close about 1,200 locations over the next three years as it tries to turn around its struggling U.S. business.

Chipmaker Wolfspeed jumped 35.8% to trim its loss for the year to 64.5% after the Biden-Harris administration announced Tuesday that it plans to provide up to $750 million in direct funding to the company. The money will support its new silicon carbide factory in North Carolina that makes the wafers used in advanced computer chips.

They helped offset a drop of 2.8% for Exxon Mobil and sharp losses for other energy companies after oil prices tumbled more than 4%. A barrel of Brent crude, the international standard, has fallen back below $74 from more than $80 last week for a couple reasons.

China’s flagging economy has raised concerns about weaker-than-expected demand for crude, which could lead to a buildup of too much oil supplies in inventories. Worries have also receded about Israel possibly attacking Iranian oil facilities as part of its pending retaliation against Iran’s missile attack early this month. Iran is a major producer of crude, and the worry beyond such a hit to supplies was that an expanding war could draw in other big oil exporters.

Also dragging on the U.S. stock market was UnitedHealth Group. The insurer fell 9.5% despite reporting better results for the latest quarter than analysts expected. It lowered the top end of its forecasted range for profit over the full year.

In the bond market, trading of Treasurys resumed after a holiday on Monday, and yields slipped following a weaker-than-expected report on manufacturing in New York state.

The yield on the 10-year Treasury fell to 4.05% from 4.10% late Friday. Manufacturing has been one of the areas of the U.S. economy hurt most by high interest rates caused by the Federal Reserve in its efforts to slow the economy enough to stamp out high inflation.

Now, though, the Fed has begun cutting interest rates as it’s widened its focus to include keeping the economy humming instead of just fighting high inflation.

Recent reports showing the U.S. economy remains stronger than expected have also raised optimism that the Fed can pull off a perfect landing where it gets inflation down to 2% without causing a recession that many had thought would be necessary.

In stock markets abroad, Chinese stocks fell sharply as doubts continue about whether the government will offer enough fiscal stimulus to prop up the world’s second-largest economy.

Stocks in Shanghai fell 2.5%, and Hong Kong’s Hang Seng index dropped 3.7%.

Indexes were mixed elsewhere in Asia and in Europe.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

The Charging Bull statue in New York's Financial District is shown on Tuesday, Oct. 15, 2024. (AP Photo/Peter Morgan)

FILE - People pass the entrance for the Wall Street subway station on Sept. 2, 2024, in New York. (AP Photo/Peter Morgan, File)

FILE -A passerby moves past an electronic stock board showing Japan's Nikkei 225 index and stock prices outside a securities building Friday, Oct. 11, 2024 in Tokyo. (AP Photo/Shuji Kajiyama, File)