This module provides a concise summary of selected Canadian economic events, as well as international and financial market developments by calendar month. It is intended to provide contextual information only to support users of the economic data published by Statistics Canada. In identifying major events or developments, Statistics Canada is not suggesting that these have a material impact on the published economic data in a particular reference month.
All information presented here is obtained from publicly available news and information sources, and does not reflect any protected information provided to Statistics Canada by survey respondents.
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- The Government of Canada announced on November 2nd that under the Investment Canada Act (ICA) it had ordered the divestiture of the following investments by foreign investors in Canadian mineral companies following scrutiny by Canada's national security and intelligence community:
- Sinomine (Hong Kong) Rare Metals Resources Co., Limited is required to divest itself of its investment in Power Metals Corp. of Vancouver;
- Chengze Lithium International Limited is required to divest itself of its investment in Lithium Chile Inc. of Calgary; and
- Zangge Mining Investment (Chengdu) Co., Ltd. is required to divest itself of its investment in Ultra Lithium Inc. of Vancouver.
- Toronto-based Yamana Gold Inc. announced it had entered into an arrangement agreement with Agnico Eagle Mines Limited of Toronto and Pan American Silver Corp. of Vancouver for the acquisition by Pan American of all of the issued and outstanding common shares of Yamana for total consideration consisting of USD $1.0 billion in cash and the issuance of approximately 153.5 million common shares of Pan American and approximately 36.1 million common shares of Agnico. The companies said the Arrangement will close late in the first quarter of 2023, subject to shareholder and regulatory approvals and closing conditions customary in transactions of this nature.
Financial
- Toronto-based Summit Industrial Income REIT, GIC Private Limited of Singapore, and Dream Industrial REIT (DIR) of Toronto announced they had entered into an agreement under which a joint venture between GIC and DIR will acquire Summit in an all-cash transaction valued at approximately $5.9 billion, including the assumption of certain debt. The companies said the transaction is expected to close in the first quarter of 2023, subject to customary conditions, including Summit unitholder, court, and regulatory approvals.
- Toronto-based Home Capital Group Inc. announced it had entered into a definitive agreement to be acquired by a wholly-owned subsidiary of North Carolina-based Smith Financial Corporation in a transaction that values the equity of the company at approximately $1.7 billion. Home Capital said the transaction is expected to close in mid-2023, subject to shareholder, court, and regulatory approvals and other customary closing conditions.
Other news
- The Government of Canada tabled the 2022 Fall Economic Statement on November 3rd, which included investment in workers, a plan to increase immigration targets, protecting the rights of road transportation workers, launching the Canada Growth Fund, and an investment tax credit for clean technologies and for clean hydrogen. The Government forecasts a $36.4 billion deficit in 2022-2023 and real GDP growth of 3.2% in 2022 and 0.7% in 2023.
- The Government of Canada announced on November 16th that regarding Baffinland Iron Mines Corporation's Mary River Mine Phase 2 development project proposal, the Government was accepting the recommendation of the Nunavut Impact Review Board (NIRB) that the proposal, in its current form, should not proceed at this time. The Government said the NIRB recommended that it not proceed due to potentially significant adverse impacts on vegetation and freshwater, leading to adverse socio-economic effects on Inuit harvesting, culture, land use, and food security in Nunavut, and also warned of adverse eco-systemic effects on marine mammals and fish, caribou, and other terrestrial wildlife.
- The Government of Ontario released the 2022 Ontario Economic Outlook and Fiscal Review on November 14th, which included tax relief for small businesses and persons with disabilities, investing in the Skills Development Fund and low income seniors, and extending the cuts to the gas tax and fuel tax rates. The Government forecasts a $12.9 billion deficit in 2022-2023 and real GDP growth of 2.6% in 2022 and 0.5% in 2023.
- The Canadian Union of Public Employees (CUPE) announced on November 21st that the central bargaining committee for 55,000 frontline education workers who are members of CUPE's Ontario School Boards Council of Unions (OSBCU) had reached a tentative agreement with the Ontario government and the Council of Trustees' Associations (CTA). CUPE said frontline education workers employed by 63 school boards and one school authority across the province will vote on whether or not to accept the agreement.
- The Government of Alberta released its 2022-23 Mid-year Fiscal Update and Economic Statement on November 24th. The Government forecasts a $12.3 billion surplus in 2022-2023 and real GDP growth of 4.8% in 2022 and 2.7% in 2023.
- The Government of Saskatchewan announced on November 1st it had introduced the Saskatchewan First Act which amends the Constitution of Saskatchewan to confirm Saskatchewan's sovereign autonomy and asserts Saskatchewan's exclusive legislative jurisdiction under the Constitution of Canada over a number of areas, including:
- the exploration for non-renewable natural resources;
- the development, conservation and management of non-renewable natural and forestry resources; and,
- the operation of sites and facilities for the generation and production of electrical energy.
- Vancouver-based Ritchie Bros. Auctioneers Incorporated and IAA, Inc. of Illinois announced they had entered into a definitive agreement under which Ritchie Bros. will acquire IAA, a digital marketplace connecting vehicle buyers and sellers, in a stock and cash transaction valued at approximately USD $7.3 billion including the assumption of net debt. The companies said the transaction is expected to close in the first half of 2023, subject to regulatory and shareholder approval and other customary closing conditions.
- New Brunswick-based Cooke Inc., parent company of Cooke Aquaculture Inc., announced the completion of its acquisition of Tassal Group Limited of Australia for a total enterprise value of approximately $1.5 billion.
- EDF Renewables of France, EIH S.à.r.l, a subsidiary of Calgary-based Enbridge Inc, and CPP Investments of Toronto announced that the 480-megawatt Saint-Nazaire Offshore Wind Farm off the southwest coast of France is now fully operational. EDF, EIH, and CPP officially launched construction of the wind farm in September 2019 alongside industrial partners and local stakeholders.
United States and other international news
- The U.S. Federal Open Market Committee (FOMC) raised the target range for the federal funds rate by 75 basis points to 3.75% to 4.00% and said it anticipates that ongoing increases in the target range will be appropriate. The last change in the target range was a 75 basis points increase in September 2022. The Committee also said it will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities.
- The Bank of England's Monetary Policy Committee (MPC) voted to increase the Bank Rate by 75 basis points to 3.0%. The last change in the Bank Rate was a 50 basis points increase in September 2022.
- The Monetary Policy and Financial Stability Committee of Norway's Norges Bank raised the policy rate by 25 basis points to 2.5%. The last change in the policy rate was a 50 basis points increase in September 2022.
- The Executive Board of Sweden's Riksbank raised the repo rate by 75 basis points to 2.5%. The last change in the repo rate was a 100 basis points increase in September 2022.
- The Reserve Bank of Australia (RBA) increased the target for the cash rate by 25 basis points to 2.85%. The last change in the target for the cash rate was a 25 basis points increase in October 2022.
- The Reserve Bank of New Zealand (RBNZ) increased the Official Cash Rate (OCR), its main policy rate, by 75 basis points to 4.25%. The last change in the OCR was a 50 basis points increase in October 2022.
- The Bahamas-based FTX Trading Ltd. announced that it, West Realm Shires Services Inc., Almeda Research Ltd., and approximately 130 additional affiliated companies had commenced voluntary proceedings under Chapter 11 of the United States Bankruptcy Code in order to begin an orderly process to review and monetize assets.
- California-based HP Inc. announced it expects to reduce gross global headcount by approximately 4,000-6,000 employees, to be completed by the end of fiscal 2025.
Financial market news
- West Texas Intermediate crude oil closed at USD $78.20 per barrel on November 29th, down from a closing value of USD $86.53 at the end of October. Western Canadian Select crude oil traded in the USD $55 to $72 per barrel range throughout November. The Canadian dollar closed at 73.65 cents U.S. on November 29th, up from 73.27 cents U.S. at the end of October. The S&P/TSX composite index closed at 20,277.41 on November 29th, up from 19,426.14 at the end of October.