Bay Street Watches Ottawa Developments

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Bay Street watches Ottawa

Canadian companies and financial markets are paying close attention to Ottawa today, as Prime Minister Mark Carney’s administration faces a crucial confidence vote regarding its budget. To steer clear of another election, the Liberals need support from at least two opposition members or four MPs willing to abstain from voting. Green Party leader Elizabeth May is also in discussions with the government, aiming to secure policy concessions in exchange for her support.

Inflation eases more slowly than expected

Inflation in Canada decreased less than anticipated last month, which backs up the Bank of Canada’s decision to pause after consecutive rate cuts. The latest data from Statscan indicates that headline inflation fell to 2.2% in October, primarily due to a quicker yearly drop in gasoline prices. On a monthly basis, the consumer price index increased by 0.2%, aligning with expectations. Core inflation – CPI excluding eight fluctuating components and indirect taxes – also rose to 2.9%.

Real estate sees a recovery

Canada’s housing market saw an upswing in October, with national home sales rising by 0.9% in September. According to figures from the Canadian Real Estate Association, the benchmark price for homes increased by 0.2% on a seasonally adjusted basis. The number of new listings dropped, yet both sales activity and benchmark prices were lower compared to last year.

Transalta acquires Ontario assets

Transalta is set to purchase Far North Power Corporation along with its four natural gas-powered generation facilities located in Ontario for $95 million. This acquisition is projected to provide an immediate boost in Transalta’s free cash flow. The company aims for a smooth integration of these new assets while continuing its focus on advancing data center opportunities in Alberta. The deal is expected to be finalized by early Q1 of 20-26.

Buffett increases Alphabet investment

Warren Buffett is expanding his investment in Alphabet, Google’s parent company. Regulatory filings reveal that Buffett’s Berkshire Hathaway acquired nearly 18 million shares of Alphabet during the third quarter, bringing his stake in the tech giant up to US$4.9 billion. Additionally, the investment firm reduced its holdings in Bank of America and Apple.

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