Business Update – 28 April 2023
Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.
CRA strike: what you need to know
PSAC’s strike has disrupted many government services, including those provided by the Canada Revenue Agency (CRA). While tax filing is still possible, there may be delays in processing, particularly for paper submissions. Get more details here.
US stocks down, but earnings season reports are more positive than expected
US stocks were down on Monday as investors awaited a week of heavy earnings reports from major companies across all sectors. The yield on government bonds declined, with investors concerned about a potential earnings recession. Despite this worry, the earnings season has so far been solid, with around 68% of companies reporting a beat on EPS.
Albertans are hurting the most when it comes to inflation
A new report by Alberta Central found that Alberta is the province most affected by inflation, with residents experiencing a decline in purchasing power of 3.6% since 2019, while the rest of the country has seen an increase of 3.3%. Economists note that this underperformance of 6.9 percentage points is significant, given the relatively short period of three years.
Labour shortages force small business owners to work an eight-day week
According to a study by the Canadian Federation of Independent Business, labour shortages are forcing the average small business owner in Canada to work an eight-day workweek, equivalent to 54 hours per week.
What the Teck conundrum says about the future of mining
Experts suggest that the struggle over Teck Resources’ assets highlights the challenges the mining industry faces as it looks towards a future where its resources are necessary for clean energy while simultaneously struggling with its past as a significant polluter.
VW plant coming to Ontario will be among the world’s largest
Volkswagen is building a $7 billion electric vehicle battery plant in St. Thomas, Ont., that will employ 3,000 people and create thousands of spinoff jobs. It will be VW’s largest plant in North America and possibly the largest VW plant in the world.
Twitter removes controversial tag from accounts
Twitter removed the “government-funded media” tag from public broadcasters, including the CBC, last Thursday without any explanation. The move came after the Global Task Force for Public Media called on Twitter to correct its description of public broadcasters.
Security expert says $20m Pearson airport heist required inside knowledge
According to a security expert, the recent theft of $20 million worth of gold and other valuables from Toronto Pearson International Airport likely required insider knowledge of the airport and its operations, given that the thieves knew what they were after and where to get it.
Bed Bath & Beyond files for bankruptcy and announces liquidation sale
Bed Bath & Beyond Inc filed for bankruptcy and began liquidation sales after failing to secure funds to stay afloat. The company had been struggling due to lower spending, competition from rivals, and a botched merchandising strategy, which was made worse by COVID-19.
A guide to annoying tax questions
Tax season is in full swing, and you likely have questions. Get easy-to-understand answers to the 13 most common tax questions from Wealthsimple’s Tax team here.
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