Canadian Economic News, October 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.

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  • Calgary-based Suncor Energy announced it had agreed to purchase TotalEnergies EP Canada Ltd, also of Calgary and which holds a 31.23% working interest in the Fort Hills oil sands mining project, for $1.468 billion. Suncor said that regulatory approvals have been received and, subject to closing, the transaction will have an effective date of April 1, 2023.
  • Calgary-based Tourmaline Oil Corp. announced it had entered into a definitive share purchase agreement with all the shareholders of Bonavista Energy Corporation, also of Calgary, to acquire all the shares of Bonavista for $1.45 billion. Tourmaline said the acquisition is expected to close in the second half of November 2023, subject to customary regulatory and stock exchange approvals.
  • Toronto-based Barrick Gold Corporation announced it was investing almost USD $2 billion in an expansion project designed to increase annual production at its Lumwana copper mine in Zambia to an estimated 240,000 tonnes of copper from a 50 million tonne per annum process plant over a 36-year life of mine. Barrick said the project’s accelerated work program is targeting completion of the full feasibility study by the end of 2024, bringing expected expanded process plant production forward to 2028.

Manufacturing

  • On October 15th, Unifor announced that members at General Motors (GM) had voted to ratify a new three-year collective agreement and that the agreement covers more than 4,300 workers at the Oshawa Assembly Plant, St. Catharines Powertrain Plant, and Woodstock Parts Distribution Centre.
  • Toronto-based Spin Master Corp., a children’s entertainment company, announced it had reached a definitive agreement to acquire Melissa & Doug of Connecticut, a brand in early childhood play, for USD $950 million. Spin Master said the acquisition is expected to close early in the first quarter of 2024, subject to the receipt of certain regulatory approvals and customary closing conditions.
  • Japan-based Honda Motor Co., Inc announced that production of the new Civic hybrid sedan will begin in spring 2024 at Honda of Canada Mfg. in Alliston, Ontario, followed shortly by the hatchback, which will be manufacturing at the Indiana Auto Plant in Greensburg, Indiana.

Minimum Wage

  • Newfoundland and Labrador’s minimum wage increased from $14.50 to $15.00 per hour on October 1st.
  • Prince Edward Island’s minimum wage increased from $14.50 to $15.00 per hour on October 1st.
  • Nova Scotia’s minimum wage increased from $14.30 to $14.65 per hour on October 1st.
  • Ontario’s minimum wage increased from $15.50 to $16.55 per hour on October 1st.
  • Manitoba's minimum wage increased from $14.15 to $15.30 per hour on October 1st.
  • Saskatchewan’s minimum wage increased from $13.00 to $14.00 per hour on October 1st.

Other news

  • On October 13th, the Supreme Court of Canada announced it had looked at the constitutionality of the federal environmental scheme under the Impact Assessment Act, enacted by Parliament in 2019, and determined that the impact assessment scheme is unconstitutional in part.
  • On October 17th, the Government of Canada announced it had tabled the text of the modernized Canada-Ukraine Free Trade Agreement (CUFTA) in the House of Commons. The Government said it had also introduced Bill C-57, which, if adopted by Parliament, would implement the modernized Agreement in Canadian law. The Government said the CUFTA includes dedicated new chapters and provisions on trade in services (including financial), investment, temporary entry for business persons, telecommunications, digital trade, labour and the environment, among other areas.
  • On October 26th, the Government of Canada announced it was moving ahead with a temporary, three-year pause to the federal price on pollution (fuel charge) on deliveries of heating oil in all jurisdictions where the federal fuel charge is in effect. The Government also said it was moving ahead with doubling the pollution price rebate (Climate Action Incentive Payment) rural top-up rate, increasing it from 10% to 20% of the baseline amount in April 2024.
  • The Government of Prince Edward Island announced a program that will provide a full rebate of the provincial portion of the Harmonized Sales Tax (HST) for new rental builds to help create more housing. The Government said the program will be reviewed in three years to determine if it is addressing housing challenges in Prince Edward Island.
  • The Bank of Canada held its target for the overnight rate at 5.0%. The last change in the target for the overnight rate was a 25 basis points increase in July 2023. The bank said it is also continuing its policy of quantitative tightening.
  • Toronto-based Porter Airlines announced that beginning in January it is launching its first two western U.S. destinations in California with daily roundtrip service connecting Los Angeles International Airport (LAX) and San Francisco International Airport (SFO) to Toronto Pearson International Airport (YYZ).
  • Toronto-based Scotiabank announced workforce reductions of approximately 3% globally as a result of the Bank's end-to-end digitization, automation, and changes in customers' day-to-day banking preferences, as well as ongoing efforts to streamline operational processes.
  • Montreal-based LOGISTEC Corporation announced it had entered into an arrangement agreement with an entity owned by certain funds managed by Blue Wolf Capital Partners LLC in partnership with Stonepeak of New York pursuant to which the entity will acquire all the issued and outstanding shares of LOGISTEC for a total enterprise value of approximately $1.2 billion. LOGISTEC said the transaction is expected to close in the first quarter of 2024, subject to customary closing conditions, including the receipt of regulatory approvals and clearances in Canada and the United States, as well as LOGISTEC shareholder and Court approval.
  • On October 22nd, Unifor announced that St. Lawrence Seaway workers had gone on strike after negotiations failed to reach an agreement. The St. Lawrence Seaway Management Corporation said the Seaway will remain shut down until an agreement can be reached.

United States and other international news

  • The European Central Bank (ECB) kept its three key interest rates unchanged at 4.50% (main refinancing operations), 4.75% (marginal lending facility), and 4.00% (deposit facility). The last change in these rates was a 25 basis points increase in September 2023.
  • The Reserve Bank of Australia (RBA) left the target for the cash rate unchanged at 4.10%. The last change in the target for the cash rate was a 25 basis points increase in June 2023.
  • The Reserve Bank of New Zealand (RBNZ) left the Official Cash Rate (OCR), its main policy rate, unchanged at 5.50%. The last change in the OCR was a 25 basis points increase in May 2023.
  • On October 9th, the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) announced that nearly 4,000 UAW members at Mack Trucks in Pennsylvania, Maryland, and Florida walked out on strike after rejecting a tentative agreement. On October 11th, the UAW announced that 8,700 UAW members walked off the job at Ford Motor Company’s Kentucky Truck Plant in Louisville. On October 23rd, the UAW announced that 6,800 UAW members had gone on strike at the Stellantis Sterling Heights Assembly Plant in Michigan. On October 24th, the UAW announced that 5,000 members at General Motors Company’s Arlington Assembly had joined the strike. On October 25th, the UAW announced it had reached a tentative agreement with Ford Motor Company and that Ford workers would return to work while the agreement goes through the ratification process.
  • Texas-based Exxon Mobil Corporation and Pioneer Natural Resources announced a definitive agreement for ExxonMobil to acquire Pioneer in an all-stock transaction valued at USD $59.5 billion. The companies said the transaction is expected to close in the first half of 2024, subject to customary regulatory reviews and approvals, including Pioneer shareholder approval.
  • California-based Chevron Corporation announced it had entered into a definitive agreement with Hess Corporation of New York to acquire all of the outstanding shares of Hess in an all-stock transaction valued at USD $53 billion. Chevron said the transaction is expected to close in the first half of 2024, subject to Hess shareholder and regulatory approvals and other customary closing conditions.
  • Finland-based Nokia Corporation announced strategic and operational changes to its business, including reducing employment to 72,000 to 77,000 compared to the 86,000 employees it has today.

Financial market news

  • West Texas Intermediate crude oil closed at USD $81.02 per barrel on October 31st, down from a closing value of USD $90.79 at the end of September. Western Canadian Select crude oil traded in the USD $55 to $70 per barrel range throughout October. The Canadian dollar closed at 72.09 cents U.S. on October 31st, down from 73.96 cents U.S. at the end of September. The S&P/TSX composite index closed at 18,873.47 on October 31st, down from 19,541.27 at the end of September.
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