Business Update – 2 August 2023
Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.
Economy hit ‘sharp reversal’ in June. What this means for the Bank of Canada
Canada’s economy kept growing in May, but early signs of a long-awaited slowdown started to appear in June, according to Statistics Canada. The Bank of Canada has said that future rate decisions, including its next one on Sept. 6, will be dependent on what economic data shows.
Ontario is lowering its markups on pot, as cannabis companies struggle to stay afloat
Cannabis retailers and producers hope an upcoming move by Ontario’s pot distributor to lower its price markups will help an industry still struggling to compete with the illicit market.
Metro workers latest to strike as Canada sees a wave of job actions
Thousands of unionized Metro grocery workers walked off the job Saturday in what is the latest in a series of strike actions taken across the country in the past year. Although Unifor endorsed a deal with Metro, with Payne describing it as the “best agreement in decades,” the membership did not support it.
Vancouver organizations receive over $2.4 million to revitalize local public spaces and enhance tourism experiences
The Government of Canada is making investments in British Columbia to refresh public spaces, attract new visitors, and stimulate local economies. These investments are expected to create more than 80 new jobs and attract over 67,000 new local, national and international visitors to Vancouver.
Bank of Canada prepared to raise rates further if inflation progress stalls
The Bank of Canada’s policymakers said they are still prepared to raise their benchmark interest rate further even as they hiked rates to their highest level in 22 years earlier this month.
TC Energy splitting into two companies by spinning off liquids business
TC Energy Corp. has announced plans to split into two separate companies by spinning off its crude oil pipelines business.TC Energy will look more like a utility company, with a focus on natural gas infrastructure as well as nuclear, pumped hydro energy storage and new low-carbon energy opportunities. The new liquids pipeline business will be headquartered in Calgary with an office in Houston, Texas.
Eight ways to fix Canada’s creaking supply chains
Canada urgently needs to fix its supply chain as it competes for international investment dollars. Cynthia Leach, assistant chief economist at RBC Economics and Thought Leadership, talks with the Financial Post’s Larysa Harapyn about the urgency and what RBC economists recommend.
Labour minister directs board to consider imposing new contract or arbitration on B.C. port workers
Canada’s labour minister says he is taking action to restore long-term stability at B.C.’s ports after unionized workers rejected a tentative agreement late Friday night. Labour Minister Seamus O’Regan issued a statement Saturday saying he had directed the Canada Industrial Relations Board to determine whether the union’s decision “has eliminated the possibility of a negotiated resolution” to ongoing labour strife on Canada’s west coast.
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