Canada's economy added about 90,000 jobs in April, according to Statistics Canada's latest Labor Force Survey figures.Carlos Osorio/Reuters
Caught up in a week on the run? A weekly digest of the Globe's most important business and investing stories, including expert insights and analysis, stock tips, portfolio strategies and more.
Canada adds 90,000 jobs in April as unemployment rate stabilizes
Canada's economy added about 90,000 jobs in April, according to Statistics Canada's latest Labor Force Survey figures. This is far more than the 20,000 job increase that many economists had predicted. Despite these increases, the unemployment rate remained stable at 6.1%. The better-than-expected report has caused both economists and money markets to reassess when the Bank of Canada will start cutting interest rates, Matt Lundy reports. On Friday, markets were pricing in a roughly 50-50 chance that the central bank would cut interest rates by half a percentage point on June 5. Over the past few days, that probability has exceeded 70%.
Bank of Canada warns of sharp increase in mortgage payments
Another major headline from the Bank of Canada this week offers bad news for homeowners. The central bank warned in its annual financial stability report that homeowners planning to renew their mortgages in the coming years will face a sharp increase in their payments. The report also said the median monthly payment for those with adjustable-rate mortgages would increase by more than 60%. Gov. Tiff Macklem pointed to that risk at a press conference about the report. “As more Canadians lose their jobs, the unemployment rate rises, and suddenly that stress, vulnerability, is at risk of really manifesting. So it's a vulnerability. And the important thing here is that households and banks need to get ahead of it.”
Decoder: How many real millionaires live in Canada's big cities?
Which of Canada's largest cities has the most bona fide millionaires? By number of liquid millionaires (individuals with liquid investable assets of USD 1 million or more) The annual survey of the world's wealthiest cities lists three Canadian cities. Toronto ranks 13th on the world's billionaires list published by immigration consulting firm Henley & Partners, with about 106,000 net millionaires. Vancouver, ranked 31st, has just over 41,000 liquid millionaires, and Calgary, ranked 57th, has 15,000 liquid millionaires. Although not included in the report, the authors found that Montreal is home to about 17,500 millionaires. Jason Kirby breaks down the numbers, including which cities come out on top based on population, in this week's edition of his Decoder.
Warren Buffett's Berkshire Hathaway considers major new investment in Canada
Warren Buffett's Berkshire Hathaway is considering new options for expanding into Canada, Brent Jiang reports. Members of the management team, including Mr. Buffett, spoke at the company's annual general meeting about the arrival of another major investment in Canada. “We're a very comfortable environment, so we're always looking to make additional investments there,” said Greg Abel, vice chairman of Hathaway's non-insurance business. The company's assets north of the border include Calgary-based Berkshire Hathaway Energy Canada, which operates 13,000 kilometers of transmission lines and 300 substations in Alberta through Altalink.
Energy-intensive AI models can put a strain on water and power grids. Will the sector be able to keep up with demand?
Have you ever wondered how much energy and water it takes to power your AI models? Spoiler alert: It's a lot. AI data centers have large amounts of electricity to power supercomputers. The supercomputer itself is built with a series of sophisticated chips made of silicon and copper, all of which are mined from the earth. The facility radiates high heat and requires large amounts of water to prevent overheating. And as we enter a new era of generative AI, the world will need more supercomputers, more data centers, and more energy. Joe Castaldo decided to talk to experts about how to support the development of AI without straining resources, straining the power grid, or harming the environment.
Ontario's Sunshine List is primarily a list of people who can't afford to buy a home.
Ontario's recently released Sunshine List of government sector employees making more than $100,000 a year has 300,570 names on it. But Preet Banerjee argues that this is just a long list of people who probably cannot afford to buy a home. He calculated what a six-figure salary meant in 1996, when the list was first released, and what it would mean in 2024, adjusted for inflation. His salary of $100,000 in 1996 equates to $180,564.97 in 2024. His conclusion: The government should consider resetting the threshold to a number that is more meaningful today.
What's going on with Greg Abel, the executive who is set to succeed famous investor Warren Buffett as the head of Berkshire Hathaway?
a. He was born and raised in Edmonton.
b. He is related to Hall of Fame hockey player Sid Abel.
c. He holds a degree in accounting from the University of Alberta.
d. All of the above.
d. all of the above. Mr. Abel was born and raised in Edmonton and graduated from the University of Alberta. He's related to some of the greatest players in hockey.
Get the rest of the questions in our weekly business and investment news quiz here and prepare for next week with The Globe's investment calendar.
