---
title: October 2, 2026 - A regime change
description: This week, we dig into the ongoing regime change within markets and the economy
image: https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/images/og/OG_McMahon_1200x628_EN.jpg
---

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# Macro Playlist

 The economic ideas driving markets.

 Every week, Sébastien Mc Mahon and his team deliver their carefully selected economic analyses and market outlooks.

<https://mcmahon.ia.ca/en/september-25-2026-back-in-the-driver-seat>

## October 2, 2026 - A regime change

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## Opening Track

The week in review

This week, we dig into the ongoing regime change within markets and the economy

<iframe class="opening-video margin-bottom-36" src="https://www.youtube.com/embed/2yUtKmh3yZA?si=E9VXNqAw-Hb3hkou"></iframe>

[Download slides](https://mcmahon.ia.ca/hubfs/Hebdo_20261002_EN.pdf)

<iframe style="border-radius: 12px; margin: 0px auto; display: block;" allow="autoplay; clipboard-write; encrypted-media; fullscreen; picture-in-picture" xml="lang" src="https://open.spotify.com/embed/playlist/4ffEtbOVvGSPEhZyrdL6XT?utm_source=generator&amp;theme=0" width="560" height="352" frameborder="0" allowfullscreen loading="lazy" data-testid="embed-iframe"></iframe>

![](https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/icones/vital_signs.svg)

## Top of the Charts

Chart of the Week | The Importance of a AAA Rating

Canada’s fiscal credibility is reflected in the AAA credit rating assigned by Standard & Poor’s. As our chart of the week shows, this rating helps keep the country’s borrowing costs relatively low, especially compared with those of the U.S. The interest-rate differential between the two countries turned negative following the U.S. downgrade by S&P in 2011 and widened further after the Fitch downgrade in 2023.

This rating is a strategic asset. Lower interest rates reduce the share of the budget devoted to debt servicing, freeing up more resources to fund national defence, public services and infrastructure.

This advantage should not, however, be taken for granted. The Carney government is preparing to table a budget aimed primarily at revitalizing investment in Canada, using fiscal credibility as a strategic lever to finance projects. Finance Minister François-Philippe Champagne will need to safeguard that credibility by establishing clear fiscal guardrails that reassure bond investors about the trajectory of Canada’s public finances.

![US vs CAN 10Y EN Prez](https://mcmahon.ia.ca/hs-fs/hubfs/US%20vs%20CAN%2010Y%20EN%20Prez.png?width=800&height=600&name=US%20vs%20CAN%2010Y%20EN%20Prez.png)

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## New Releases

Read our latest publications

### Monthly Macro & Strategy

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### White Paper

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## Soundtrack

This week, Mötley Crüe joins the Macro Playlist!

<iframe class="sound-track-video" src="https://www.youtube.com/embed/ybcxIpb-R_0?si=DSeUhRyM7dyaLnR0"></iframe>

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## Featured on Air

Quick access to our latest media appearances

### Retail sales month-over-month fall 0.7% in July

 BNN Bloomberg – September 24, 2026 

[Watch here](https://www.bnnbloomberg.ca/video/shows/the-street/2026/09/24/retail-sales-month-over-month-fall-07-in-july/)

<iframe style="border-radius: 12px; margin: 0px auto; display: block;" allow="autoplay; clipboard-write; encrypted-media; fullscreen; picture-in-picture" xml="lang" src="https://open.spotify.com/embed/playlist/4ffEtbOVvGSPEhZyrdL6XT?utm_source=generator&amp;theme=0" width="560" height="352" frameborder="0" allowfullscreen loading="lazy" data-testid="embed-iframe"></iframe>

![](https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/images/Sebastien_McMahon.png)

## Sébastien Mc Mahon

Chief Economist, iA Financial Group

![](https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/images/Etienne_Bergeron.png)

## Étienne Bergeron

Economist, iA Financial Group

[About the team](https://mcmahon.ia.ca/en/about-us)

## Archives

 2026

 October

- [October 2, 2026 - A regime change](https://mcmahon.ia.ca/en/october-2-2026-a-regime-change)

 September

- [September 25, 2026 - Back in the driver seat](https://mcmahon.ia.ca/en/september-25-2026-back-in-the-driver-seat)
- [September 18, 2026 - Kevin Warsh Takes Action](https://mcmahon.ia.ca/en/september-18-2026-kevin-warsh-takes-action)
- [September 11, 2026 - Eye for an eye](https://mcmahon.ia.ca/en/september-11-2026-eye-for-an-eye)
- [September 4, 2026 - Risk management](https://mcmahon.ia.ca/en/september-4-2026-)

 August

- [August 28, 2026 - Breaking point](https://mcmahon.ia.ca/en/august-28-2026-breaking-point)
- [August 21, 2026 - The U.S. Treasury Under Pressure](https://mcmahon.ia.ca/en/august-21-2026-the-u.s.-treasury-under-pressure)
- [August 14, 2026 - Negotiation Blitz](https://mcmahon.ia.ca/en/august-14-2026-negotiation-blitz)
- [August 7, 2026 - Course adjustment](https://mcmahon.ia.ca/en/august-7-2026-course-adjustment)

 July

- [July 31, 2026 - Loss of credibility](https://mcmahon.ia.ca/en/july-31-2026-loss-of-credibility)
- [July 24, 2026 - Oil and Tariff](https://mcmahon.ia.ca/en/oil-and-tariffs)
- [July 17, 2026 - Inflation surprise](https://mcmahon.ia.ca/en/july-17-2026-inflation-surprise)
- [July 10th, 2026 - War and Peace](https://mcmahon.ia.ca/en/july-10th-2026-war-and-peace)
- [July 3rd, 2026 - Trump's world](https://mcmahon.ia.ca/en/july-3rd-2026-)

 June

- [June 26, 2026 - The fall of the loonie](https://mcmahon.ia.ca/en/june-26-2026-a-hike-in-july)
- [19 June 2026 - A new era](https://mcmahon.ia.ca/en/19-june-2026-a-new-era)
- [June 12 2026 - Stay the course](https://mcmahon.ia.ca/en/june-12-2026-stay-the-course)
- [June 5, 2026 - Recalibration at the BoC](https://mcmahon.ia.ca/en/june-5-2026-recalibration-at-the-boc)

 May

- [May 29, 2026 - Earnings and recessions](https://mcmahon.ia.ca/en/may-29-2026-earnings-and-recessions)
- [May 22, 2026 - Downbeat Canada](https://mcmahon.ia.ca/en/may-22-2026-downbeat-canada)
- [May 15, 2026 - Inflation and AI](https://mcmahon.ia.ca/en/week-ending-may-15-2026)

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