In its third-quarter report, released before the market opened, the company announced it pulled in over $2.45 billion in sales from July to September, up from $2.2 billion the previous year. Their main services area had a 15% boost in revenue, while their nuclear division jumped an impressive 35%.

Based in Montreal, AtkinsRéalis does everything from consulting to engineering to construction, and even specializes in CANDU nuclear reactors. Edwards mentioned that demand remains high as the company helps public and private groups meet their energy goals and strive for net-zero emissions.

However, profits were slightly lower this quarter compared to last year, mainly because they had a big gain from selling their Scandinavian business back then. Still, the company reported a record project backlog worth $16.8 billion, a 35% jump from last year.

Analyst Sabahat Khan from RBC Capital Markets called their Q3 performance better than expected and maintained a $70 price target with an “outperform” rating, meaning he sees potential for more growth.

Here’s the deal: the Producer Price Index (PPI), which measures how much producers are charging for their goods, went up by 0.2% in October. This was expected by most economists, especially since it had only gone up 0.1% in September.

Looking at the bigger picture, wholesale inflation (the yearly rise in producer prices) grew by 2.4% in the past year. This was a bit higher than what people predicted at 2.3% and also up from September’s 1.9%. When you focus on core PPI—leaving out the usual ups and downs of food and energy prices—it rose by 0.3% in October, just as predicted. The yearly core PPI came in at 3.1%, also a little above expectations.

After this news dropped around 8:30 am EDT, gold prices stayed in their usual trading range. Last we checked, spot gold was trading at $2,554.06, down 0.73% for the day.

Why does this all matter? PPI is often seen as a hint of where inflation might be heading, since producers pass their costs onto customers. Some experts think that if producer prices keep dropping along with better CPI inflation numbers, the Federal Reserve might feel ready to ease up on interest rates at future meetings. And that could be good news for gold’s long-term value.

In the third quarter, which ended on October 5, Loblaw’s total sales were up by 1.5% from last year, rising from $18.26 billion to $18.54 billion. But that still fell short of the $18.65 billion analysts predicted. After the earnings report, Loblaw’s stock dropped 3% on Wednesday, with shares trading at $182.57 around midday.

Loblaw said that sales of non-food items like electronics, household goods, and other extras actually dragged down their food sales in existing stores. While overall sales went up, the growth in same-store sales—an important retail metric that shows how established stores are doing—slowed down significantly. For example, grocery same-store sales only rose 0.5%, which is a big drop from last year’s 4.5%. Similarly, Shoppers Drug Mart’s same-store sales growth slowed to 2.9%, down from 4.6% last year.

Loblaw’s CFO, Richard Dufresne, pointed out that some of this slower growth was because Thanksgiving fell in the fourth quarter this year instead of the third, which makes comparisons a bit tricky. Without the Thanksgiving effect, food sales growth in established stores would have been 1.3%.

With customers spending less on big-ticket, discretionary items, Loblaw has decided to stop selling certain electronics at Shoppers Drug Mart, like laptops, TVs, and gaming consoles. This shift might impact fourth-quarter sales, especially with the holiday season around the corner, but Loblaw is betting that focusing on its core products will be more effective.

While inflation has cooled off a bit in Canada, many customers are still looking to save where they can. As a result, Loblaw’s discount stores, like No Frills and Maxi, have been performing better than its regular locations, such as Loblaws and Superstore. Loblaw has been leaning into this trend, opening 25 new discount locations last quarter alone. They’re also testing out three new “ultra-discount” pilot stores under the No Name brand, which offer a limited selection of low-cost items with a focus on savings. These No Name stores are expected to save customers around 20% by cutting out extra costs and only stocking a narrow range of items, without any refrigerated products.

“The idea with these stores is to strip out any unnecessary costs and pass those savings directly to our customers,” Loblaw CEO Per Bank said on a recent call with analysts. He added that it’s too soon to know if the model will work, but they’re learning as they go. “If it’s successful, we’ll open more of these stores. If not, we’ll take what we learned and apply it to our discount program.”

Loblaw’s strategy reflects how it’s adapting to economic pressures and shifting shopping behaviors, focusing more on budget-friendly options to meet consumers’ current needs.

Shopify’s leadership expressed confidence in continuing this growth trend, projecting revenue for the fourth quarter—traditionally the busiest due to the holiday shopping season—to increase between the mid-to-high twenties percentage range compared to the same period last year. This guidance exceeded the 23% growth that analysts had predicted, signaling that Shopify expects strong consumer spending momentum despite potential macroeconomic headwinds.

In addition to robust sales growth, Shopify saw a notable improvement in free cash flow, which rose to $421 million in the third quarter from $276 million in the same period last year. This positive cash flow indicates not only increased revenues but also more efficient operations, further strengthening investor confidence and driving up the stock. As a result, Shopify’s shares climbed as much as 27% on Tuesday before settling at $152.26 on the Toronto Stock Exchange by the end of the trading day—a 21% increase from Monday’s closing price.

Analysts reacted positively to Shopify’s performance and outlook. William Blair analyst Arjun Bhatia commented in a research note to clients that the results reflect strong execution in Shopify’s growth initiatives, adding that the company has been able to capture market share from larger, established players such as Salesforce, Adobe Magento, and Oracle. “Given the company’s positioning in the market, we believe it is a long-term winner in the space, and we continue to have a positive outlook,” Bhatia wrote. He further noted that Shopify’s ability to secure market share from these significant competitors highlights its strong value proposition, and he remains optimistic about the company’s future potential.

CFRA senior research analyst Angelo Zino also reiterated a “buy” rating on Shopify’s stock, raising his 12-month price target for the U.S.-listed shares to $135. Zino was impressed with Shopify’s guidance for the fourth quarter, particularly as it came amid concerns of slowing consumer demand and macroeconomic pressures affecting the e-commerce sector. According to Zino, Shopify is gaining momentum through a combination of expanded product offerings, geographic expansion, and growth among new and existing merchants of various sizes.

Shopify’s customer base has expanded notably, with the company attracting both new merchants and larger enterprise clients. In the third quarter, Shopify added 16 new major clients, including well-known brands such as Reebok, Brilliant Earth, Off-White, and Lionsgate Entertainment. This move underscores Shopify’s strategy to attract more complex, larger-scale businesses in addition to its traditional base of entrepreneurs and small businesses. Shopify President Harvey Finkelstein highlighted this shift during a conference call, emphasizing that the company’s platform is increasingly capable of supporting sophisticated, high-volume clients looking for robust e-commerce solutions.

Overall, Shopify’s performance and forward-looking projections demonstrate its resilience in the competitive e-commerce space and its ability to adapt to market demands, making it a top choice for investors betting on the continued growth of online shopping.

The incident happened in Fort McMurray when 28-year-old Roger Sierra from Calgary drove a Ford F-350 into the restaurant on Saturday. Police charged him with criminal negligence causing death after the truck struck a 24-year-old employee, who later passed away in the hospital.

The document detailing Sierra’s charge claims he was under a medical suspension that legally prevented him from driving. In Alberta, licenses can be suspended for medical conditions that might make driving unsafe.

Sierra is set to appear in court in Fort McMurray on December 4. Meanwhile, a GoFundMe page created to support the family of the young woman has raised nearly $65,000 as of Wednesday morning. The family shared that they’re devastated and are struggling to process the sudden loss.

Context for the Bank of Canada’s Decision

The Bank’s decision to enact a 50-basis-point cut is notable because it represents a more aggressive intervention than its usual quarter-point adjustments. Since March 2020, when the Bank implemented three emergency half-point rate cuts during the pandemic, this marks one of the largest rate reductions in a single move. The Canadian economy has shown several warning signs in recent months: inflation has cooled significantly, GDP growth remains sluggish, and consumer spending is showing signs of weakness.

Several recent economic indicators underpinned this latest decision. First, inflation has decreased to 1.6% in September, falling below the central bank’s target of 2%. The downward trend in inflation largely reflects a drop in global oil prices, which, in turn, has reduced gasoline prices and eased pressures on overall consumer prices. Alongside these changes, shelter costs—while still high—are starting to stabilize, contributing to an easing in core inflation measures, which now stand at less than 2.5%.

The Economic Slowdown: Key Indicators

In addition to cooling inflation, other economic indicators have raised concerns about a potential downturn. Recent GDP data suggests limited growth, with GDP remaining almost flat through Q3 and the year-end outlook predicting a modest 1.2% expansion for 2024. Consumer spending, which is a primary driver of economic activity, has been notably soft, with spending per capita declining, suggesting households are cutting back amid economic uncertainty.

The labor market has also softened, with unemployment reaching 6.5% in September, up from lows earlier in the year. This is coupled with a decline in GDP per capita—a measure indicating economic output per individual—that has been contracting for five consecutive quarters. With these pressures mounting, the Bank of Canada’s recent move is aimed at reversing these adverse trends by lowering borrowing costs to encourage spending and investment.

Implications for Canadian Borrowers and Investors

One of the most immediate effects of the rate cut will be seen in borrowing costs. The Bank’s interest rate adjustments typically influence the prime rate, which directly impacts variable-rate loans, including mortgages, credit lines, and certain savings accounts. Following the Bank’s announcement, the prime rate at Canada’s largest financial institutions dropped to 5.95% from 6.45%, easing the burden on existing borrowers with variable-rate loans and potentially stimulating the housing market by making mortgages more affordable.

The real estate sector, in particular, stands to benefit from this change. Over the past year, higher interest rates slowed housing activity by making mortgages more expensive. With rates coming down, analysts anticipate increased demand for residential property, a likely uptick in home sales, and potentially a stabilization in housing prices. Lower borrowing costs could also provide a boost for prospective homebuyers and increase activity in home renovations and real estate investments.

For investors, lower interest rates often make equities and other higher-yield investments more attractive, as returns on savings accounts and fixed-income investments decrease with interest rates. This environment could encourage investment in Canadian stocks and real estate investment trusts (REITs), which could help drive growth in the capital markets and offer investors new opportunities in a lower-rate climate.

The Bank’s Strategy and Future Projections

The 50-basis-point cut is part of a broader strategy by the Bank of Canada to return interest rates to a “neutral” zone, which it estimates to be around 2.25% to 3.25%. At neutral rates, the economy is theoretically in balance, neither overheating nor underperforming. This goal, however, will require additional cuts if economic data remains weak. Analysts expect the Bank to continue easing through early 2025, with projections suggesting another 50 to 75 basis points could be cut if inflation remains subdued and economic growth fails to pick up significantly.

The decision aligns with recent global trends, as central banks worldwide reassess their rate policies in light of reduced inflation and softened demand. As a result, Canadian markets have largely priced in additional rate cuts in the months ahead, expecting that the Bank will continue to prioritize growth by fostering an accommodating borrowing environment. Economists believe that, with inflation under control, the Bank can safely prioritize policies that stimulate economic activity rather than cool it.

Broader Economic Forecast and Potential Challenges

Looking ahead, the Bank of Canada’s expectations for economic performance remain cautiously optimistic. The Bank projects GDP growth to accelerate modestly in 2025, reaching around 2.1%, with further improvement in 2026. This growth is expected to stem from several factors, including a rebound in consumer spending, increased business investment, and robust demand for Canadian exports, particularly from the United States. The anticipated rebound in real estate investment is also likely to contribute to growth as lower rates help drive demand for housing and associated industries.

However, there are potential challenges on the horizon. One is the risk of economic “scarring” from the period of high interest rates over the last two years, during which households and businesses faced increased borrowing costs. As rates decline, it may take time for economic actors to fully regain confidence and return to previous spending patterns. Another consideration is the risk of unforeseen inflationary pressures, which could arise if global energy prices rise unexpectedly or if supply chain issues resurface. Should inflation climb above target levels again, the Bank may have to recalibrate its policy approach once more, potentially stalling growth.

Public and Business Sentiment

The Bank’s rate cut has been met with mixed reactions. While the reduction is widely seen as positive for indebted households and businesses, some economists worry that lower rates might encourage excessive borrowing, which could destabilize the economy in the long run. Conversely, advocates of the rate cut argue that it will provide essential relief to households struggling with elevated debt loads and high living costs.

Business groups, particularly in the housing and construction sectors, have largely welcomed the move. The rate reduction is expected to stimulate demand, which could increase employment and profitability within these industries. However, businesses in the financial sector may face lower profit margins, as reduced rates typically diminish the yield on loans and other financial products.

The Bank of Canada recently cut its interest rate by half a percentage point, widening the interest rate gap with the U.S. Federal Reserve. This difference in monetary policy between the two nations is creating strain on the loonie. While the Fed had also implemented a large rate cut back in September, economic resilience in the U.S. has since reduced expectations of further rate cuts there. Benjamin Reitzes, a Canadian rates and macro strategist with BMO Capital Markets, explains that the strength of the U.S. economy may lessen the need for more aggressive monetary easing by the Fed. This situation contrasts sharply with Canada, where economic momentum is flagging, making further rate cuts more likely. These differing monetary paths have left the Canadian dollar more vulnerable, as it may weaken in comparison to a relatively steady U.S. dollar.

In a recent report, Scotiabank analysts led by Hugo Ste-Marie noted that the Bank of Canada appears willing to take assertive actions to stimulate an economy that is operating below its full potential. According to Ste-Marie, the Bank of Canada is leaving open the possibility of another large interest rate cut at its next meeting. This willingness to act aggressively on rate cuts contrasts with the U.S. Federal Reserve’s current stance, which is expected to avoid repeating its recent 50-basis-point cut. As a result, we’re seeing two central banks that are both easing policy, but one is “walking” while the other is “running.” The 125-basis-point difference between Canada’s and the U.S.’s policy rates is the largest it has been in at least two decades, and it could expand even further in the coming months, adding pressure on the loonie’s value.

Another factor weighing on the Canadian dollar is the recent change in Canada’s immigration targets. The federal government in Ottawa recently announced cuts to its immigration goals, which could slow economic growth and ease inflationary pressures, particularly in the housing market. Benjamin Reitzes notes that a cooling of inflation in key sectors like housing may give the Bank of Canada more room to cut rates even further. If the central bank moves in this direction, it could further weaken the Canadian dollar, as lower interest rates typically make a currency less attractive to international investors. The reduction in immigration targets could therefore indirectly place more strain on the loonie, as rate cuts reduce the appeal of Canadian investments.

The upcoming U.S. presidential election is also a significant factor affecting the Canadian dollar. Economic policies proposed by some U.S. candidates could introduce friction with Canada’s biggest trading partner, potentially harming trade relationships that are critical to the Canadian economy. Republican candidate Donald Trump has pledged to reimpose tariffs and adopt a more protectionist stance, which could limit Canadian exports to the U.S. and hurt the loonie. Additionally, the uncertainty surrounding the U.S. election outcome could increase risk aversion in the financial markets. A contested or disorderly election could lead investors to seek safe-haven assets, driving them away from the Canadian dollar and causing further depreciation.

Market expectations are already beginning to reflect a divergence in policy between the two nations, with the U.S. appearing more likely to maintain a steady rate policy while Canada anticipates further cuts. Reitzes points out that the market is pricing in a significant difference in policy outlooks, and there could be additional pressure if this gap widens. This divergence places the loonie at risk of weakening to levels that are typically seen only during major economic downturns, as investors might seek safer, higher-yielding assets elsewhere.

Despite these pressures, the Canadian dollar has shown resilience, trading within a range of 72 to 76 U.S. cents. However, analysts from Scotiabank believe that if this trading range breaks, the loonie could revisit lows near 68 U.S. cents, a level not seen since 2016 and 2020. While a weaker Canadian dollar could offer some advantages to exporters and provide a small boost to TSX earnings, the analysts caution that it may also have negative implications for Canadian businesses. A further decline in the currency’s value would make imported goods, such as machinery, equipment, and IT resources, more expensive. These imports are essential for Canadian firms to address productivity issues, and higher costs in these areas could impede growth and modernization in various industries.

The impact of these economic challenges is already being felt in Canadian employment, as recent data indicates a rise in unemployment insurance claims across the country. The number of Canadians receiving employment insurance (EI) benefits has increased by 6% compared to last year, and by 25% since the lows seen in early 2023. National Bank of Canada economists point out that the increase in EI claims aligns with a steady rise in the unemployment rate, suggesting that more Canadians are struggling to find work amid a softening labor market. This trend is concerning, as it signals reduced economic stability and could have further repercussions for the Canadian dollar if it affects consumer spending and overall economic growth.

Regional disparities in employment trends are also evident, with Ontario showing particularly high increases in unemployment insurance claims. Of the ten Canadian cities with the largest rise in jobless claims, nine are in Ontario. Cities such as Guelph, Toronto, and Hamilton are among the hardest hit. National Bank of Canada economists Taylor Schleich and Warren Lovely note that Ontario’s central economic hub, Toronto, is experiencing a significant increase in EI claims, which are up 40% year-to-date compared to the same period last year. This regional concentration of unemployment suggests that certain parts of the Canadian economy may be facing unique challenges, potentially adding to the loonie’s struggles if regional economic weaknesses further drag down national performance.