Here are five things you need to know this morning
Bay Street eyes Ottawa
Canadian businesses and financial markets are keeping an eye on Ottawa today, as Prime Minister Mark Carney’s government faces a confidence vote on its budget. To avoid a new election, the Liberals need at least two votes from opposition members or four MPs to abstain from voting. Green Party leader Elizabeth May is also speaking with the government, hoping to achieve policy goals in return for her vote.
Inflation cools by less than expected
Inflation in Canada cooled by less than expected last month, supporting the Bank of Canada’s move to the sidelines after back-to-back rate cuts. The latest Statscan data shows headline inflation decelerated to 2.2% in October, driven by a faster yearly decrease in gasoline costs. On a monthly basis, the consumer price index rose by 0.2%, matching expectations. Core inflation -- CPI excluding eight volatile components and indirect taxes -- also accelerated to 2.9%.
Real estate rebound
Canada’s housing market bounced back in October, with national home sales climbing 0.9% in September. According to data from the Canadian Real Estate Association, the benchmark price of a home rose 0.2% on a seasonally adjusted basis. The number of new listings declined. However, sales activity and the benchmark price were both lower than a year ago.
Transalta buying Ontario assets
Transalta is buying Far North Power Corporation and its four natural gas-fired power generation facilities in Ontario for $95 million. The deal is expected to deliver an immediate increase in Transalta’s free cash flow. The company says it aims to seamlessly integrate the new assets while remaining focused on advancing their data centre opportunities in Alberta. The deal is expected to close early first quarter of 20-26
Buffett boosts Alphabet stake
Warren Buffett is boosting his backing of Alphabet, the parent company of Google. Regulatory filings show Buffett’s Berkshire Hathaway acquired almost 18 million shares of Alphabet during the third quarter. Buffett now has a US$4.9 billion stake in the tech giant. The investment firm further trimmed its holdings in Bank of America and Apple.
