Canadian Economic News, November 2023 Edition

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.

Resources

  • Calgary-based Crescent Point Energy Corp. announced it had entered into an arrangement agreement to acquire Hammerhead Energy Inc., also of Calgary, for total consideration of approximately $2.55 billion. The company said the transaction is expected to close in December 2023, subject to court, Toronto Stock Exchange and other stock exchange and regulatory approvals, and other customary closing conditions.
  • Vancouver-based Teck Resources Limited announced it had agreed to sell its entire interest in its steelmaking coal business, Elk Valley Resources, through a sale of a majority stake to Glencore plc of Switzerland for an implied enterprise value of USD $9.0 billion, and a sale of a minority stake to Nippon Steel Corporation (NSC) of Japan. Teck said the closing of the Glencore transaction is expected to occur in the third quarter of 2024, subject to customary conditions, including receipt of approvals under the Investment Canada Act and competition approvals in several jurisdictions. Teck also said the NSC transaction is expected to close in the first quarter of 2024 and is also subject to customary conditions, including receipt of certain competition approvals.

Manufacturing

  • On November 6th, Unifor announced that auto members at Stellantis had voted to ratify the Master Collective Agreement (covering the Windsor Assembly Plant, Brampton Assembly Plant and Etobicoke Casting Plant), along with agreements covering Unifor members working in the office, clerical and engineering unit, fire and security unit, and PDC units in Mississauga and Red Deer. Unifor said the three-year collective agreements cover approximately 8,200 Unifor members.
  • On November 22nd, Unifor announced that members at the Magna Integram plant in Windsor had ratified a new tentative agreement after a five-day strike that began on November 9th. Unifor said the agreement covers 800 members.
  • The Government of Canada announced support of up to $204.5 million for a $1 billion lithium-ion battery cell manufacturing facility in Maple Ridge, British Columbia to be constructed by E-One Moli of Taiwan. The Government said the new facility will create up to 350 new jobs.

Other news

  • The Government of Canada released its 2023 Fall Economic Statement on November 21st, which included measures to help increase housing supply, improve affordability, and fight climate change. The Government forecasts a $40.0 billion deficit in 2023-2024 and real gross domestic product (GDP) growth of 1.1% in 2023 and 0.4% in 2024.
  • The Government of Newfoundland and Labrador released its 2023 Economic Update on October 31st. The Government forecasts a $154 million deficit in 2023-2024 and a 0.7% contraction in real GDP in 2023.
  • The Government of Newfoundland and Labrador announced a new, three-year phased poverty reduction plan that focusses on four key areas: reducing childhood poverty, creating meaningful and sustainable employment, improving income, and supporting seniors. The Government said the plan adds to other work currently underway and is supported by an investment that will grow to $85 million after three years.
  • The Government of Ontario released its 2023 Economic Outlook and Fiscal Review on November 2nd, which included launching the Ontario Infrastructure Bank, taking steps to remove the provincial portion of the Harmonized Sales Tax on new purpose-built rental housing, providing an additional $100 million to the Invest Ontario Fund, and extending the current gas and fuel tax rate cuts through to June 30, 2024. The Government forecasts a $5.6 billion deficit in 2023-2024 and real GDP growth of 1.1% in 2023 and 0.5% in 2024.
  • The Government of Quebec released its economic and financial update on November 7th, which included additional investments totalling $4.3 billion over the next five years to provide better access to housing, combat homelessness, enhance food aid, support training in specific fields, adapt to climate change, and foster business investment. The Government forecasts a $4.0 billion deficit in 2023-2024 and real GDP growth of 0.6% in 2023 and 0.7% in 2024.
  • Toronto-based Canadian Tire Corporation announced that it expects a decrease of 3% in full-time equivalent (FTE) employees as a result of targeted headcount reductions in Q4 and that, in addition, the elimination of the majority of current vacancies will result in a further FTE reduction of 3%. The company said it expects to take a charge of between $20.0 million and $25.0 million in Q4 2023 in relation to these actions.
  • On November 2nd, Unifor announced that members at the St. Lawrence Seaway Management Corporation (SLSMC) had ratified new collective agreements covering 360 workers. Unifor said the ratification follows a strike that halted transit along the Seaway from October 22nd to October 30th.
  • Montreal-based TVA Group announced a reorganization plan that will result in the elimination of 547 positions, or 31% of TVA Group's current workforce.

United States and other international news

  • The U.S. Federal Open Market Committee (FOMC) maintained the target range for the federal funds rate at 5.25% to 5.50%. The last change in the target range was a 25 basis points increase in July 2023. 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 maintain the Bank Rate at 5.25%. The last change in the Bank Rate was a 25 basis points increase in August 2023.
  • The Monetary Policy and Financial Stability Committee of Norway's Norges Bank left the policy rate unchanged at 4.25%. The last change in the policy rate was a 25 basis points increase in August 2023.
  • The Executive Board of Sweden's Riksbank left the repo rate unchanged at 4.0%. The last change in the repo rate was a 25 basis points increase in September 2023.
  • The Bank of Japan (BoJ) announced it will apply a negative interest rate of -0.1% to the Policy-Rate Balances in current accounts held by financial institutions at the BoJ and that it will purchase a necessary amount of Japanese government bonds (JGBs) without setting an upper limit so that 10-year JGB yields will remain at around zero percent.
  • The Reserve Bank of Australia (RBA) raised the target for the cash rate by 25 basis points to 4.35%. The last change in the target for the cash rate was a 25 basis points increase in June 2023.
  • New York-based WeWork Inc. announced that it and certain of its entities had filed for protection under Chapter 11 of the U.S. Bankruptcy Code and intended to file recognition proceedings in Canada under Part IV of the Companies' Creditors Arrangement Act.
  • The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) announced on November 20th that members at Ford, General Motors, and Stellantis had voted to ratify their new contracts.

Financial market news

  • West Texas Intermediate crude oil closed at USD $76.41 per barrel on November 28th, down from a closing value of USD $81.02 at the end of October. Western Canadian Select crude oil traded in the USD $47 to $58 per barrel range throughout November. The Canadian dollar closed at 73.63 cents U.S. on November 28th, up from 72.09 cents U.S. at the end of October. The S&P/TSX composite index closed at 20,036.77 on November 28th, up from 18,873.47 at the end of October.
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