Canada’s unemployment rate in August climbed the highest jobless rate since May, 2017, excluding the pandemic.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.
Canada’s unemployment rate climbs to 6.6%
Canada’s unemployment rate climbed higher in August – reaching 6.6 per cent – as the job market slowdown is swamped by a historic surge in the population, Matt Lundy reports. This is the highest jobless rate since May, 2017, excluding the pandemic, and it has risen nearly two percentage points from a record low in 2022. The labour market continues to weaken as employers dial back on hiring due to higher interest rates. It has been especially tough for young people and recent immigrants seeking employment. The latest job numbers follow the Bank of Canada’s interest rate decision to cut its benchmark interest rate for a third consecutive time, paving the way for additional rate cuts in the coming months. The central bank also reiterated that economic growth needs to pick up so that inflation doesn’t fall below the 2-per-cent target.
7-Eleven parent rejects Couche-Tard takeover offer
Japanese parent company of the 7-Eleven chain of convenience stores Seven & i Holdings Co., Ltd. has rejected a bid from Canada’s Alimentation Couche-Tard Inc., saying the proposal grossly undervalues the company. In a letter disclosed to investors, Stephen Dacus, chair of a special committee tasked with considering the offer, said the proposal of US$14.86 per share was “opportunistically timed.” It comes after Couche-Tard chief executive Alex Miller said the Quebec-based company was “confident” it could complete a takeover of 7-Eleven. Seven & i Holdings Co. had been widely expected to resist the takeover even after changes to Japanese mergers and acquisitions guidelines in recent years have made doing so harder, James Griffiths and Nicolas Van Praet report.
Decoder: Could aggressive rate cuts unleash a household savings tsunami?
Canadians have been stockpiling money to cope with higher interest rates, but will that trend change with the latest series of Bank of Canada rate cuts? Canada’s savings rate – which reflects net savings as a share of household disposable income – has reached the highest level, outside of the pandemic period, in nearly 30 years. Meanwhile, the savings rate in the United States has plunged compared to before the pandemic. This means: American consumers are spending while Canadians have hunkered down. But for how long? Jason Kirby takes a closer look at the figures in this week’s Decoder.
China launches anti-dumping investigation into Canada’s canola imports
In retaliation for Ottawa’s decision to impose tariffs on Chinese electric vehicles, Beijing decided this week to launch an anti-dumping investigation into Canada’s multibillion-dollar canola imports. The Chinese Commerce Ministry said in a statement that the value of exports of Canadian canola had risen 170 per cent year-over-year amid a “continuous decline in prices,” which it said is evidence of potential dumping behaviour. Last year, Canada exported $5-billion worth of canola – also known as rapeseed – to China. The seeds are used for food and biofuel. The tit-for-tat move threatens to harm local farmers and producers, Steven Chase reports, who say the news has come at a terrible time.
Canada’s banks under pressure due to growing competition in a ‘ruthless oligopoly’, RBC chief executive says
In the banking world this week, Royal Bank of Canada CEO Dave McKay said Canada’s banks are facing a flurry of competition for customers in shifting interest-rate environment, which, in turn, is putting unexpected pressure on profit margins. “It is a ruthless oligopoly, at the end – ruthlessly competitive,” Mr. McKay told investors at a Bank of Nova Scotia conference on Wednesday that featured major bank chief executives. The new dynamic is playing out in the mortgage market – as banks jockey to increase their share of customers who are renewing home loans and looking for the lowest interest rate – and in a race to gather deposits, James Bradshaw reports.
Norway’s high-stakes gamble into sustainable salmon farming
Norway is a mecca of fish farming. Norwegians figured out how to domesticate salmon, and exported their expertise globally, taking a significant chunk of salmon sales in jurisdictions worldwide, including Canada. The Scandinavian country is now trying a new farming method that could help produce enough protein to feed the world – sustainably. Kate Helmore reports on the Jostein Albert, Norway’s largest privately-owned fish farming company, its experiment in open-ocean fish farming based on an offshore vessel, and the country’s high-stakes gamble on sustainable salmon farming.
Take our business quiz for the week of Sept. 6
d. Royal Bank of Canada chief executive Dave McKay. Bank critics have accused the Big Five of being a ruthless oligopoly for years, but it was Mr. McKay who applied the term in rather confusing fashion this week. His point seemed to be that the big banks compete fiercely against one another. But that’s not really an oligopoly, is it? Oh, well. Maybe the point here is that oligopolists use words the way oligopolists want.
Get the rest of the questions from the weekly business and investing news quiz here, and prepare for the week ahead with The Globe’s investing calendar.