Here are five things you need to know this morning
TSX hits record high: It’s as if the tariff panic never happened. Canada’s benchmark stock index closed at a record high yesterday, a dramatic reversal after a plunge last month set off by U.S. President Donald Trump’s tariff plans. The S&P/TSX Composite Index climbed 0.8 per cent on Thursday, gaining for an eighth-straight session, ending at a record high 25,897.48 points. It’s the index’s first closing record since Trump’s inauguration. Nine out of 11 sectors gained yesterday, with industrial firms like AtkinsRealis and Stantec leading the charge. The TSX has now climbed 4.7 per cent so far in 2025 and outperformed U.S. indices, thanks in part to its higher weighting toward defensive sectors and its large concentration of gold stocks, which have enjoyed record bullion prices, according to Bloomberg Intelligence strategist Gillian Wolff.
Canadian Tire buying HBC brands: An iconic Canadian brand is being acquired by another national champion. Canadian Tire is buying the intellectual property of Hudson’s Bay for $30 million. The sale includes the Hudson’s Bay brand, its iconic, multicoloured stripes motif, its coat of arms and other brand trademarks. Canadian Tire CEO Greg Hicks says the fall of The Bay is “disheartening to witness” but the deal his company reached is meant to be both “strategic” and “patriotic.” The sale, which is expected to close this summer, still needs court approval as part of the restructuring process for Canada’s oldest company.
Ontario sees deficit surge: Ontario’s budget shortfall is expected to reach its highest level since the beginning of the COVID-19 pandemic as the effects of the trade war hurt economic growth. The provincial government’s deficit is projected to be $14.6 billion in the fiscal year that began April 1 — its deepest in more than a decade outside of the pandemic. The result is a much larger borrowing plan than the government anticipated in October, when it projected a deficit of just $1.5 billion for this year. Ontario won’t see a surplus until at least the 2027-28 fiscal year, marking the second year in a row the government has postponed balancing the books.
Strathcona launches MEG takeover: There is a blockbuster takeover proposal in Canada’s oil and gas sector. Strathcona Resources says it wants to buy MEG Energy for just under $6 billion. Its cash and stock offer is expected to be formalized in two weeks, but MEG’s board of directors – according to Strathcona – rejected the offer in late April. MEG is an oil sands producer best known for its Christina Lake project in Northeastern Alberta. MEG says once a bid is made, it will consider and evaluate the offer. The news comes a day after Strathcona announced deals to sell natural gas assets in Western Canada for $2.8 billion. We had insight on the prospects for the MEG takeover on BNN Bloomberg from investment manager Peter Hodson this morning on The Street… and we will speak with Strathcona Executive Chairman Adam Waterous at 3:40 p.m. EDT.
Rio Tinto plans US$1.2B Quebec investment: Despite tariffs implemented by the Trump administration on Canadian imports of aluminum, Rio Tinto has announced plans to spend as much as US$1.2 billion by 2032 to modernize its 99-year-old power plant in Quebec. The British-Australian mining and metals giant said in a statement that the investment will ensure the long-term future and competitivity of its aluminum production in Quebec for decades to come. The company employs about 4,000 people in the province.
