This week’s biggest economic news will likely be today’s economic update from Finance Minister Ralph Goodale. The federal Liberals are likely to announce tax breaks in the run-up to a coming election.

Reports suggest the update will announce a higher personal tax exemption for iCanadians, and reinstate $2 billion in corporate tax cuts.

It’s expected that Goodale will say Canada is on track to post a budget surplus of $10 billion to $12 billion for the 2005-2006 fiscal year.

Also Monday, Bank of Canada Governor David Dodge participates in a panel of the Bank of Mexico’s International Conference.

On Tuesday, Statistics Canada reports manufacturing shipments for September. Economists expect a month-over-month increase in manufacturing shipments of 0.6%.

On Thursday, Statistics Canada reports on Canada;s international transactions in securities in September.

On Friday, Statistics Canada reports on wholesale trade in September. A 0.5% increase is expected from the previous month.


South of the border, the U.S. Commerce Department reports on retail sales in October on Tuesday. A 0.7% drop is expected.

The U.S. Labor Department reports on the producer price index in October. Economists expect the index to be flat from September.

The New York Federal Reserve Bank releases the Empire State index of manufacturing activity in November. Economists expect a reading of 15.5, from 12.1 the previous month.

On Wednesday, the U.S. Labor Department releases the consumer price index for October. Economists expect the CPI to remain unchanged from the previous month.

Separately, the U.S. Commerce Department reports on business inventories in September.

On Thursday, the U.S. Commerce Department reports on building permits and housing starts in October.

The U.S. Labor Department reports on initial jobless claims in the week ending Nov. 12.

The U.S. Federal Reserve Board reports on capacity utilization and industrial production in October.

The Philadelphia Federal Reserve Bank issues its regional factory index for November.

Among those companies scheduled to release earnings this week are: Wal-Mart Stores Inc.; Onex Corp.; Finning International Inc.; Nelson Resources Ltd.; AEterna Zentaris Inc.; Bema Gold Corp.; Leon’s Furniture Ltd.; Home Depot Inc.; Alimentation Couche-Tard Inc.; Metro Inc.; Hewlett-Packard Co.; Tembec Inc.; and Van Houtte Inc.