Gildan Activewear Inc.’s board has put the clothing manufacturer up for sale, escalating a three-month battle for control.Christinne Muschi/The Canadian Press
Getting caught up on a week that got away? Here’s your weekly digest of the Globe’s most essential business and investing stories, with insights and analysis from the pros, stock tips, portfolio strategies and more.
Gildan Activewear’s board puts company up for sale
In a surprising twist of events, the board of Gildan Activewear Inc. GIL-T has put the company up for sale, Andrew Willis and Nicolas Van Praet report. After receiving a takeover offer in the past two months, Gildan’s board approached investment banks RBC Capital Markets and Goldman Sachs Group Inc. to look for additional bidders. Meanwhile, in an opposition effort from its top shareholder, Browning West says the Gildan board initiated the sale in order “to avoid accountability” and can’t be trusted to oversee the sales process. It is the latest escalation in a three-month battle for control that saw co-founder Glenn Chamandy dismissed as CEO in December, 2023.
Canada’s inflation rate unexpectedly fell to 2.8 per cent in February
Another unexpected move for the economy this week: Canada’s inflation rate dropped to 2.8 per cent in February – falling back within the Bank of Canada’s target range for the second straight month and opening the door for interest rate cuts. Analysts were instead expecting an upturn to 3.1 per cent. According to Statistics Canada, the inflation rate cooled amid sharp declines in cellular and internet services, as well as slower grocery price growth. The results suggest higher interest rates are not only working to bring inflation under control, but also on a faster timeline than central bankers expected. The next Bank of Canada interest rate announcement is on April 10.
Why you can’t afford a home, in 10 charts
It’s no secret that Canada is in the midst of an affordability crisis, especially when it comes to housing. Let’s say you’re looking to buy a home. Well, the troubling truth is that a typical household has little chance of getting into the housing market today. But why? Matt Lundy takes a look at the host of factors that are driving up home prices – specifically in a series of 10 charts. He writes that housing affordability doesn’t just come down to supply and demand, but red tape surrounding new residential developments, warped construction timelines, inflation on construction materials and immense pressure from the rental market all come into play.
Canada’s AI infrastructure does not compute
Canada’s AI infrastructure is falling behind in the global tech race. The country has long championed itself as a bastion for AI students and researchers, but a significant underinvestment in computing power is now threatening a tech brain drain, Joe Castaldo reports. There is a huge global demand for computing equipment because researchers want access to powerful systems to make scientific discoveries and build businesses – but that’s becoming harder to do in Canada. That’s why many are calling on Ottawa to spend big – at least $1-billion to start, and possibly up to $10-billion over a number of years – to catch up and start building, fast.
Bank CEO succession is the talk of Bay Street, but women are not likely candidates
Many of Canada’s biggest banks are setting the stage for a new round of CEO successions in the coming years. Royal Bank of Canada’s RY-T Dave McKay, Toronto-Dominion Bank’s TD-T Bharat Masrani and Canadian Imperial Bank of Commerce’s CM-T Victor Dodig – the longest-serving CEOs among their peers – haven’t signalled they are leaving any time soon, but the speculation on who will eventually replace them has started to swirl on Bay Street. Stefanie Marotta reports, however, that the chances those successors include a woman are slim to none. Over the past few years, the number of women leaving the top ranks has outpaced the number moving in. “It feels like we have not made much progress at that point of the pyramid,” says Sonia Baxendale, CIBC’s former head of retail banking who left in 2011.
How to avoid a CRA audit in 2024 as complex new rules come into play
Tax season is upon us, and Erica Alini shares two pieces of advice for lowering the odds of an audit from the Canada Revenue Agency: “File on time and get it right the first time.” For the 2023 tax year, specifically, the new CRA rules for claiming employee expenses and novel reporting requirements on underused housing and trusts might trip up Canadian taxpayers and attract unwanted scrutiny. The deadline for filing taxes in Canada for 2024 is April 30. As the big day approaches, The Globe and Mail offers advice on how to maximize returns, find credits and avoid an audit in our full series on tax tips.
Now that you’re all caught up, test your knowledge with our weekly business and investing news quiz and prepare for the week ahead with the Globe’s investing calendar.
Abigale Subdhan