Five Key Business Developments to Monitor in Canada Next Week
The Canadian business landscape is poised for significant developments in the upcoming week, particularly in areas concerning trade disputes, real estate, inflation metrics, corporate earnings, and central bank communications. Here’s an overview of five crucial points to watch.
1. Trade Tariffs
Businesses and investors are closely observing the ongoing trade dispute between Canada and the United States. There is a looming threat of significant tariffs, which are set to take effect next month. Canadian political leaders are actively lobbying U.S. President Donald Trump in efforts to diffuse these tensions. The anticipated tariffs could lead to increased costs, adversely affecting both the Canadian and U.S. economies. Watch for any new statements or developments regarding this high-stakes issue, as it could have widespread implications for bilateral trade dynamics.
2. Real Estate Data Release
This week, two vital indicators regarding the Canadian housing market are scheduled for release. The Canada Mortgage and Housing Corporation (CMHC) will publish its housing starts figures for January on Monday. Following that, the Canadian Real Estate Association (CREA) is slated to present its home sales figures for January on Tuesday. Notably, December figures showed a substantial increase in home sales, rising by 19.2 per cent compared to the sales figures from December 2023. These data points will be critical for understanding the trajectory of the real estate market in Canada.
3. Inflation Report
On Tuesday, Statistics Canada is set to provide its latest consumer price index (CPI) reading for January, which will shed light on inflation trends in the country. The annual inflation rate was recorded at 1.8 per cent in December, a slight decline from 1.9 per cent in November. Economists and policymakers will assess the new figures to gauge inflationary pressures and to make informed decisions regarding monetary policy.
4. Corporate Earnings Announcements
The week will feature an influx of financial results from prominent Canadian companies. RioCan Real Estate Investment Trust is anticipated to report its earnings on Tuesday, with Gildan Activewear Inc. and Manulife Financial Corp. following suit on Wednesday. Thursday will see results from Cameco Corp., Cascades Inc., Cenovus Energy Inc., and Teck Resources Ltd. Onex Corporation will wrap up the week with its earnings report on Friday. Investors will be keen to analyze these results to assess the performance and outlook of these companies and sectors.
5. Bank of Canada Governor Speech
On Friday, Bank of Canada Governor Tiff Macklem is scheduled to deliver a speech to the Mississauga Board of Trade and the Oakville Chamber of Commerce. This comes on the heels of the central bank’s decision to lower its key policy interest rate by a quarter percentage point to three per cent last month. Macklem's address is likely to provide insights into the bank's monetary policy strategy and the economic outlook for Canada, which will be of interest to investors and economic analysts alike.
As these events unfold, they will collectively shape the business environment in Canada, presenting both challenges and opportunities for stakeholders. The attention on trade negotiations, housing market trends, inflation rates, corporate performance, and central bank statements highlights the interconnectedness of these factors in driving economic policy and business decisions.
