Today’s top stories

4:25 p.m.

Market close: TSX down almost 300 points, U.S. stock markets also move lower

Canada’s main stock index fell 1.3 per cent in a broad-based decline today after the latest inflation print came in higher than expected, while U.S. stock markets also moved lower.

The S&P/TSX composite index closed down 273.94 points at 20,218.89.

In New York, the Dow Jones industrial average was down 106.57 points at 34,517.73. The S&P 500 index was down 9.58 points at 4,443.95, while the Nasdaq composite was down 32.05 points at 13,678.19.

The Canadian Press

2:15 p.m.

Bank of Canada’s Sharon Kozicki: Interest rate hikes are working

Bank of Canada deputy governor Sharon Kozicki said she sees evidence interest rate increases are working to slow inflation, but reiterated policymakers are prepared to hike further if necessary.

In a speech at the University of Regina in Saskatchewan, Kozicki said the “ups and downs” in the pace of inflation in the past couple of months “are not that unusual.”

“Recent data have provided evidence that our policy rate increases are slowing demand. Household credit growth has eased as the impact of higher rates restrained spending among a wide range of borrowers,” she said. “And we are mindful that past increases in interest rates will continue to weigh on activity.”

Kozicki’s comments suggest policymakers are still likely still comfortable staying on the sidelines after holding rates steady at five per cent on Sept. 6, opting to wait and assess the impact of their aggressive tightening cycle. Despite the acceleration in headline inflation and persistent underlying price pressures, the central bank is betting a continued softening of economic growth will weigh on consumer prices.

“Both inflation and inflation expectations have come down, and excess demand in the economy is easing. And our past policy actions will continue to have an effect as they work their way through the economy,” she said.

Still, Kozicki reiterated that officials “are prepared to raise the policy rate further if needed.”

Read the full story from Bloomberg here.

2:10 p.m.

Amazon to hire 6,000 workers in Canada

Amazon.com Inc. says it is ramping up to hire more than 6,000 people across Canada.

The Seattle-based e-commerce giant says the new hires will cover full-time, seasonal and part-time roles.

They will work across Amazon’s operations network in jobs that involve picking, packing, sorting and shipping customer orders.

The hiring comes as Amazon is investing more than $70 million in pay increases for fulfilment and transportation employees, who will see their average hourly wage rise to $21 from $17 in 2018.

Under the new compensation plan, hourly full- and part-time employees will receive pay increases every six months until their 24-month anniversary, and another increase at their 36th month.

Amazon runs more than 60 logistics sites in Canada and has two new locations on the way this year.

The Canadian Press

2 p.m.

Canada-India trade deal negotiations ‘stopped in their tracks’

Prime Minister Justin Trudeau on Sept. 18 announced that Canada will pursue allegations of a potential link between government of India agents and the killing of a Canadian citizen in this country. As a result, trade deal negotiations seem to have “stopped in their tracks,” as Bob Fay, managing director of digital economy, Centre for International Governance Innovation’s (CIFI), put it.

India’s government strongly rejected Trudeau’s allegations, which was followed by diplomats from both sides getting expelled.

“The deal was always going to be difficult; now it’s going to be even more so,” said Carlo Dade, a director at the Calgary-based think-tank Canada West Foundation. “Other countries have failed in trade negotiations with India. We would not be the first.”

As Trudeau investigates India, Canada’s trade policy hangs in the balance by Financial Post’s Naimul Karim.

12 p.m.

Midday markets: Stocks fall, oil surges

Canada’s main stock index was down more than 200 points in midday trading in a broad-based decline led by the base metal, technology and industrial sectors, while U.S. stock markets also moved lower.

The S&P/TSX composite index was down 242.46 points at 20,250.37 at midday.

In New York, the Dow Jones industrial average was down 257.01 points at 34,367.29. The S&P 500 index was down 30.05 points at 4,423.48, while the Nasdaq composite was down 110.70 points at 13,599.54.

The price of oil surged to a 10-month high, a powerful rally that threatens to stoke inflation. Global benchmark Brent futures topped US$95 a barrel for the first time since November. West Texas Intermediate was trading at US$92.81 a barrel.

The Canadian Press, with additional reporting from Bloomberg

10:45 a.m.

David Sobey, former Sobeys chief executive and chair, dies at 92

David Sobey, a former chief executive and chair of the Sobeys Inc. grocery store chain, has died. He was 92 years old.

Empire Co. Ltd., the parent company of Sobeys, says he helped grow the regional player built by his father into a national food retailing and distribution business.

Empire chief executive Michael Medline called Sobey an incredible retailer, business leader and mentor.

Sobey served as vice-chair and CEO of Sobeys from 1982 to 1986 and as chair and CEO from 1986 to 1995.

He was chair from 1995 until 2001 when he retired and was appointed chair emeritus of Sobeys.

Sobey retired from the Empire board of directors in 2015.

The Canadian Press

10:23 a.m.

UAW warns it will expand strikes if serious progress isn’t made by Friday

The United Auto Workers said more of its members will go on strike at General Motors Co., Ford Motor Co. and Stellantis NV facilities starting at noon Friday unless substantial headway is made toward new labour contracts.

“Either the Big Three get down to business and work with us to make progress in negotiations, or more locals will be called on to stand up and go out on strike,” UAW president Shawn Fain said in a video released late Monday.

Ford said Monday night that it was developing contingency plans for further work stoppages, “including plans to ship the parts that keep Ford vehicles on the road.”

The new deadline raises the stakes for talks between three of the biggest automakers in the United States and the union representing 146,000 of their workers. Friday will mark one week since the UAW called its first-ever walkout across all three of the legacy Detroit manufacturers, which is costing the companies output of about 3,200 vehicles a day, according to S&P Global Mobility.

Unifor, which represents auto workers in Canada, extended the deadline for negotiations with Ford by 24 hours early Tuesday morning. The union said the automaker had tabled a “substantive offer.” But it also told union members to be ready to go on strike if needed.

Bloomberg with additional reporting from Financial Post

9:30 a.m.

Stock markets in North America are open, and it’s a sea of red

Stock markets opened lower in Canada and the United States this morning, as traders await the U.S. Federal Reserve’s latest interest rate decision on Wednesday.

In Canada, the S&P/TSX composite index was down 110.30 points to 20,382.53 in early morning trading.

On Wall Street, the S&P 500 fell 6.97 points to 4,446.56, the Dow was down 57.88 points to 34,566.42 and the Nasdaq fell 38.10 points to 13,672.14.

9:24 a.m.

August’s rise in inflation is bad news for Bank of Canada: economist

Canada’s higher-than-expected inflation reading in August could be bad news for the Bank of Canada’s fight to tame inflation, at least one economist says.

Stephen Brown, deputy chief North America economist at Capital Economics, said the four per cent reading, driven by higher gas prices, will be concerning to policymakers at the central bank. “The rise in the headline and core inflation back toward four per cent means we can no longer blame mortgage interest costs for keeping inflation elevated,” he said in a note.

The Bank of Canada had estimated headline inflation at 3.3 per cent this quarter. But economists at Capital Economics think it’s more likely to come in over 3.7 per cent, raising pressure on the central bank to raise interest rates.

“The risk of another rate hike is higher than we previously judged,” Brown said.

Still, he’s betting the Bank of Canada will lean toward keeping interest rates on hold in October, that is, if the consumer price index reading in September co-operates.

“We still think signs of broader economic weakness will persuade the bank to remain on hold at its next meeting in October — providing that the September CPI report, due before that meeting does not show another unwelcome surprise,” Brown said.

8:30 a.m.

Inflation climbs 4% in August

The rate of inflation rose four per cent in August, inflation said Sept. 19.

Higher gas prices drove inflation, the agency said. Gasoline prices rose 0.8 per cent year over year in August, the first yearly increase since January 2023, after falling 12.9 per cent in July.

The price of groceries slowed, coming in at 6.9 per cent on a year-over-year basis, compared to an 8.5 per cent rise in July.

Meanwhile, prices of shelter and rent rose. Shelter prices were up six per cent on a year-over-year basis in August, after increasing 5.1 per cent in July. Rent accelerated the most in Nova Scotia at 9.5 per cent, Newfoundland and Labrador at 8.4 per cent, Alberta at 6.5 per cent, and Manitoba at 6.1 per cent.

Mortgage interest costs also went higher, with the cost index rising at a slightly faster pace in August at 30.9 per cent compared with 30.6 per cent in July.

Economists had forecasted that inflation would reaccelerate by 3.8 per cent, reversing previous progress made as gasoline prices push inflation higher.

Canada’s annual inflation rate fell to 2.8 per cent on an annualized basis in June, entering the Bank of Canada’s target range of one to three per cent for the first time since March 2021. However, the pace picked up in July to 3.3 per cent.

The Bank of Canada kept its key interest rate on hold at five per cent earlier this month, but noted it was ready to raise rates if needed.

The Financial Post’s Canada’s inflation picks up speed in August

8 a.m.

Elon Musk says he might start charging everyone to use X

Elon Musk said that a small monthly service fee for using X could help fight off bot operations on the social media platform formerly known as Twitter.

A subscription for all users would make “the effective cost of bots” very high and would require operators to use a new payment method for each account, the billionaire said in a conversation with Israeli Prime Minister Benjamin Netanyahu at Musk’s Tesla Inc. offices in Fremont, Calif. on Monday.

Netanyahu, who questioned Musk about antisemitism and hate speech on the platform, had asked how he could prevent “armies of bots” from amplifying hate speech. X currently has a free tier and subscriptions for individual subscribers and brands, and Musk said bots are the “single most important reason” to shift to monthly payments.

Musk, who’s been in an ongoing conflict with Jewish civil rights group, the Anti-Defamation League, had said that while it was difficult to “police” the 100 million to 200 million posts a day on X in advance, he could take steps to de-amplify hate speech.

Bloomberg

7:45 a.m.

OECD says global economy to slow, Canada included

Canada will join the world in a slowdown of economic growth, as interest rate increases weigh down activity and China’s pandemic rebound disappoints, the Organization for Economic Co-operation and Development said.

Global growth will ease to 2.7 per cent in 2024 after an already “sub-par” expansion of three per cent this year, according to the latest OECD forecasts.

In Canada, the OECD expects the economy to grow by only 1.2 per cent, a 0.2 percentage point change from its last forecast.

Global economy poised to slow as rate hikes bite, OECD says

7:30 a.m.

Unifor extends Ford negotiations for 24 hours

Unifor and Ford Motor Co. are continuing to negotiate after the union extended a strike deadline by 24 hours.

The union pushed back the deadline that had been set to expire late Monday night after it said it received a “substantive offer” from Ford.

However, the union said its members should continue to maintain strike readiness.

Unifor is negotiating with Ford in hopes of reaching a pattern agreement that serves as the basis for contracts at General Motors Co. and Stellantis NV.

Ford said it will continue to work collaboratively with the union to create a blueprint for the automotive industry that supports a vibrant and sustainable future in Canada.

Unifor has said it is focused on increasing wages, improving pensions, and securing good jobs in a future set to be dominated by electric vehicles.

The Canadian Press

Stock markets: Before the open

Global shares were mixed in cautious trading Tuesday ahead of the United States Federal Reserve’s upcoming decision on interest rates.

France’s CAC 40 added 0.2 per cent to 7,292.91 in early trading. Germany’s DAX fell nearly 0.1 per cent to 15,716.61. Britain’s FTSE 100 was little changed, rising less than 0.1 per cent to 7,659.91. The futures for the Dow Jones industrial average and the S&P 500 were up less than 0.1 per cent.

On Monday, the S&P/TSX composite index closed down 129.51 points at 20,492.83. U.S. markets eked out small gains.

Shopify Inc. was a major drag on Canadian markets, helping explain why the TSX posted a worse day than U.S. markets. The tech company’s stock closed down more than five per cent.

The Associated Press, with additional reporting from The Canadian Press

What to watch today

Statistics Canada will release its consumer price index at 8:30 a.m. Economists are forecasting that inflation reaccelerated to around four per cent in August, reversing previous progress made as gasoline prices have gone higher.

Bank of Canada deputy governor Sharon Kozicki will speak at the University of Regina later this afternoon at 2 p.m. Kozicki will speak about how household differences have affected monetary policy since the COVID-19 pandemic. Follow along on the webcast here.

The Organization for Economic Co-operation and Development (OECD) will release its interim economic outlook report on the global economy.

Additional reporting by The Canadian Press, Associated Press and Bloomberg

Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters financialpost.com.