Teamsters Canada Rail Conference members picket outside the CPKC headquarters in Calgary, Alta. on Aug. 23.Jeff McIntosh/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.
Federal labour board orders thousands of rail workers back to work
On Saturday, Canada Industrial Relations Board ordered thousands of rail employees back to work effective Monday, resolving at least temporarily a major conflict that threatened Canada’s supply chains. The federal board imposed binding arbitration on the country’s two major railways — Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. — and Teamsters Canada Rail Conference, the union representing nearly 10,000 rail workers. The work stoppage began just after midnight Thursday, when CN locked out employees after months of separate contract talks failed to yield agreements. CPKC train crews and dispatchers went on strike at the same time. The shutdown has halted movements of grain, imported goods at the ports and chemicals.
TD Bank sets aside additional $2.6-billion to cover U.S. regulatory penalties
Toronto-Dominion Bank is setting aside an additional US$2.6-billion to cover expected regulatory penalties in the United States over failures in the bank’s anti-money-laundering program, James Bradshaw reports. The bank is bracing for a historic fine of more than US$3-billion, including a provision of US$450-million that it earmarked in April, to settle investigations from multiple U.S. regulators. That would be the largest penalty a Canadian bank has paid to solve a regulatory problem, and the second-largest fine levied against any bank over similar issues. TD expects to reach a settlement with regulators that will include other, non-financial penalties by the end of the calendar year. The bank also posted its third-quarter results this week, reporting its first quarterly loss in 21 years.
Decoder: The sudden rise of temporary foreign workers in entry-level office jobs
There has been a rise in the number of temporary foreign workers in entry-level office jobs. According to figures published by the federal government, employers were approved to hire more than 3,500 administrative assistants through the Temporary Foreign Worker Program last year. That number is up from just 112 of those roles approved in 2016. Companies were authorized to hire nearly 2,000 administrative officers in 2023. The TFW program has soared in use over the past few years, including more recruitment of low-wage workers in hospitality, construction and other fields – but it has also brought greater scrutiny. Matt Lundy takes a closer look at the figures in this week’s Decoder.
Couche-Tard approaches 7-Eleven owner about takeover in potentially historic transaction
Montreal-based Alimentation Couche-Tard Inc. is seeking to acquire Seven & i Holdings Co. Ltd. – the Japanese parent of 7-Eleven – in a proposal that would position the Canadian company to dominate the global convenience-store industry, reports Jameson Berkow. No financial terms were disclosed and Couche-Tard stressed it had submitted a “friendly, non-binding proposal.” If Couche-Tard succeeds, it would be the largest acquisition the company has ever made. It would also be the largest acquisition of a Japanese company by a foreign one in history. James Griffiths reports on Japan’s beloved “konbini” culture and why the food marts are far more than the quick-stop shops of the West.
Inflation rate eases, cementing case for Bank of Canada rate cut
Canada’s inflation rate cooled to 2.5 per cent in July, largely driven by lower prices for travel tours, passenger vehicles and electricity. It was the lowest inflation rate since March, 2021, and matched analyst expectations. It also brings consumer price growth even closer to the Bank of Canada’s 2-per-cent target. After the July inflation report, the consensus view among economists and investors was that the Bank of Canada would cut interest rates by a quarter of a percentage point at each of its three remaining announcements this year. The next interest rate announcement is September 4. The U.S. Federal Reserve is also widely expected to join in the action next month and cut interest rates for the first time this cycle.
The double trouble of AI and Ozempic
It’s been less than two years since AI and Ozempic seemed to erupt out of nowhere, but the two breakthrough innovations – which may seem worlds apart – each promise to massively impact our lives in the years to come. They also share the potential to jolt a plodding economy, if only they can overcome barriers to mass adoption. Jason Kirby reports on the unlikely comparison, and spoke to experts who are beginning to see the potential for dramatic economic gains from anti-obesity medications, coming on top of an expected productivity boost from AI. “In other words, AI could drive growth by replacing some humans, while Ozempic could do the same by improving them.”
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d. $2.6-billion. TD is now bracing for a historic fine of more than US$3-billion, including a provision of US$450-million that it earmarked in April, to settle investigations from multiple U.S. regulators. It would be the largest penalty that a Canadian bank has paid in the United States, and is believed to be the second-largest U.S. regulatory penalty levied against any bank over similar issues.
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