Here are five things you need to know this morning
Job creation tops expectations: The Canadian economy added more jobs than expected in September, but the unemployment rate held steady as more people entered the workforce. Employment rose by 60,400 positions, driven by increases in full-time work. The jobless rate was unchanged at 7.1 per cent. Gains were led by public employment. The manufacturing sector added 27,800 employees, and agriculture, health care and other services all added workers. Bloomberg News notes the surprisingly strong job gains suggest Canada’s job market is showing some resilience to tariff disputes with the U.S. … and is also likely to boost expectations for a pause in interest rate cuts at the Bank of Canada’s next scheduled announcement on Oct. 9.
Aritzia blowout quarter: Aritzia boosted its forecast for the year after revenue and profit blew past expectations in its latest quarter. This comes as the Vancouver-based clothing retailer makes inroads in the American fast-fashion market. The company says it sees an opportunity to grow to around 200 stores in the U.S., up from the existing 70. To support growth south of the border, Aritzia has tripled the capacity of its U.S. distribution centre and the CEO says there is still room to grow.
Silver surges: The record-setting run for the price of gold has been getting plenty of attention, but silver has quietly been doing even better. Silver jumped for a second day near a record as a historic tightening of the London spot market added steam to a rally driven by demand for safe-haven assets. Silver is up more than 75 per cent this year, by far outpacing gold’s advance, as investors seek security in the face of fiscal uncertainties in the U.S., concerns over an overheating equities market and threats to the Federal Reserve’s independence. We’ll discuss with mining investing veteran Rick Rule at 1:15 p.m. EST Friday on BNN Bloomberg.
Linamar makes $300M U.S. deal: A Canadian auto parts company is beefing up its operations in the United States. Linamar is buying Aludyne’s North American operations for US$300 million. In its news release announcing the deal, Linamar nods to the protectionist comment and actions taken by the U.S. government, saying “The addition of U.S.-based manufacturing assets is expected to further strengthen Linamar’s ability to support customers locally, which is increasingly important in today’s dynamic global trade environment. A diversified geographic footprint ensures resilience and flexibility in responding to evolving geopolitical and regulatory frameworks.”
U.S. sales soft for MTY Food: A strained American consumer has affected the results of a Canadian fast food company. Quebec-based MTY Food Group reported a decline in third-quarter profit as softening sales, particularly in the U.S. market, weighed on its results. The quick-service and casual-dining restaurant franchiser owns such brands as Wetzel’s Pretzels and Baton Rouge. Sales at stores open for at least a year fell 1.6 per cent overall, and MTY noted that the U.S. segment saw a same-store sales drop of 2.5 per cent.
