Here are five things you need to know this morning
Ottawa threatens legal action against Stellantis: The federal government is threatening legal action against Stellantis, after the automaker announced it’s halting plans to manufacture its Jeep Compass SUV at a factory in Brampton, Ont. and will instead move production of the vehicle to the U.S. The move puts the jobs of thousands of workers at the Canadian plant in limbo. Industry Minister Melanie Joly calls the move “unacceptable”, citing legally binding commitments to its Canadian operations, specifically, commitments made by accepting support through Canada’s strategic innovation fund. Ottawa is demanding that Stellantis come up with new mandates for the factory and keep its contracts with Canadian suppliers.
China’s export controls pushback: China’s decision to unveil new export controls on rare earths is sparking a global pushback, with the U.S. and other countries forming a response. The White House said it is speaking with Canada, Australia, India, the Asian democracies and its European allies to form a response to China’s moves. Beijing has said the new export controls are due to national security concerns. The move comes as Chinese president Xi Jinping and U.S. President Donald Trump prepare for their first sit-down in six years next week.
Relief for softwood lumber: Industry Minister Melanie Joly says financial relief is coming soon for Canada’s tariff-hit softwood lumber sector. Joly says Ottawa will provide funding through banks, backstopped by the Business Development Bank of Canada, in the coming days. Joly says the funding will go toward ensuring businesses stay afloat while dealing with “unjustifiable” tariffs, adding that funding will be provided based on individual companies’ needs. The government will also offer support for operations and capital expenditures.
Home sales fall in September: Home sales across the country fell in September after months of growth. Data from the Canadian Real Estate Association shows sales activity declined 1.7 per cent compared to the month before. The drop was led by lower sales in Vancouver, Calgary, Edmonton and Ottawa. New listings also saw a decline in September and home prices fell to their lowest level in over four years. CREA says the data point to a real-estate market that is adjusting to tepid economic conditions and a weak labour market, triggered by a major shift in U.S. trade policy.
BMO to sell U.S. branches: Bank of Montreal has agreed to sell 138 branches in 11 states to First-Citizens Bank & Trust. The lender says the move is part of a plan to optimize its network and is aimed at focusing on markets with potential for long-term growth. BMO says it also plans to open 150 branches over the next five years. Under the terms, First Citizens will assume about US$5.7 billion. In deposits, BMO said it will record a charge of about $104 million in its fourth quarter.
